An even more popular reform is Governor Stitt’s proposal of saving money for the state’s rainy-day fund.  When voters are told of the 574 million dollar increase in certification of funds, 73% agree with Stitt’s proposal to saving at least 200 million into the state’s savings account.  “Everyone should pay attention to the question wording here,” McFerron said.  “In this question we made the argument that the state should spend the money to make-up for past underfunding.  Even with this note, a strong supermajority of voters still favor saving over spending.”
  
“Fully 84% of Republicans and 87% of those Republicans who regularly vote in primary elections favor the savings plan,” McFerron continued. “And this is a message that unites both urban and rural Oklahomans with more than 70% of each group supporting saving at least $200 million.”

“We are excited about the results of this poll,” said Harlow.  “As advocates for Oklahoma consumers, we want a state government which is responsive to them.  This polling shows that support for these two priorities of the Stitt administration is one way to give Oklahomans what they desire.”

The survey of Oklahoma registered voters was conducted by live agents on both land and mobile lines.  It was controlled for gender, age of respondent, partisan affiliation, and region of the state so that it accurately reflects the Oklahoma electorate.  Conducted March 12-15, 2019, the survey of 400 registered voters has a margin of error of +/- 4.9%.   Full question wording is below.
 
1. As you may know, Governor Stitt and legislative leaders recently announced they had reached a compromise agreement which will give the Oklahoma governor’s office more control over the key agency boards.  These nine-member boards will now be comprised of five gubernatorial appointments and four from legislative leaders who will serve at the will of whoever appoints them.  This will allow any governor in Oklahoma to have more control and responsibility for actions of these agencies instead of the way it is now where the appointments can last for years and overlap from one governor to the next, meaning a new governor may not gain control of an agency for six years or more.  From what you know, do you approve or disapprove of this new approach?

58%​ Approve
28%​ Disapprove
14% Undecided
 
2. As you may know, the state equalization board has certified that the state legislature will have $574 million more to spend this year than last year.  Governor Stitt has proposed saving at least $200 million of these dollars into the state’s rainy-day fund savings account, while others say the state should spend all of this money to make-up for past underfunding.  Do you favor or oppose Governor’ Stitt’s proposal to save at least $200 million?

73%​ Favor
20%​ Oppose
 7% ​ Undecided

It is such an honor to be with you today. I’d like to take a moment to recognize the honored guests with us:

Lieutenant Governor Matt Pinnell, statewide elected officials, President Pro Temp Greg Treat, Speaker Charles McCall, Speaker Pro Temp Harold Wright, members of the 57th Legislature, cabinet members, Chief Justice Noma Gurich and members of the Oklahoma Supreme Court, tribal leaders, friends, guests, my beloved First Lady – Sarah, my six children, my parents, and the most important audience – my fellow Oklahomans.

I stand before you today to offer a vision for Oklahoma’s future that gives purpose and direction for how our new administration will lead the state. My vision for Oklahoma is very clear and simple: to make Oklahoma Top Ten. My purpose is to work with you to deliver a turnaround that ensures a better future for all four million Oklahomans. I believe it is a purpose we all share in this room today.

Before we get into the details of my very first budget, I want to discuss how we position Oklahoma well for a “turnaround” by defining the term and the expectations for this vision.

Oklahoma’s “turnaround” is when our state stops moving in the direction of decline and begins moving in the direction we want to go: to be Top Ten in the nation. To get there, it will require three steps:

First – We must bring together people from across the state, with various backgrounds, skills and talents, to serve in critical leadership roles.

Second – We must set measurable goals and put metrics in place so every state employee, agency leader, member of my administration, and each of you in our Legislature can be part of one team with one vision.

Third – We must hold ourselves responsible for delivering results and reimagine the possibilities. I’ve said it before, Oklahoma’s challenges are no different than any other state – and Oklahoma’s opportunities, I believe, are the best in the nation.

Going through this process will put Oklahoma on the path to be Top Ten. And if anyone thinks that becoming Top Ten is just a campaign slogan, let me tell you, this turnaround is already under way with individuals who are delivering Top Ten outcomes in their own classrooms, communities, and industries.

Consider Donna Gradel – An environmental teacher in Broken Arrow Public Schools. Two weeks ago, she was named one of the Top Four teachers in the nation. Donna reimagined the classroom. She moved beyond the textbook by taking her classroom outside to partner with the city of Broken Arrow to clean public water and by taking the classroom to the world by developing a system to provide sustainable food sources to orphans in Kenya.

Donna, thank you for being here today.

Consider the Gathering Place – USA Today named it the number one place in America to visit in 2019. It is an example of public-private partnership. Where 55 acres stretched across the Tulsa river front, the George Kaiser Family Foundation reimagined a free park that is bringing together all ages, races, and categories of people to enjoy Tulsa.

Consider the Oklahoma Youth Expo Community. In the early 2000s, this youth livestock show was struggling to survive, but donors, Oklahoma families, and the Legislature came together, assessed their resources, and reimagined the program. Today, OYE is not just the #1 junior livestock show in America, it is the largest in the world. Today, OYE garners young participants from all 77 counties, awards hundreds of thousands of dollars in education scholarships and has shown a $22 million economic impact on Oklahoma City.

These are just a few examples of Oklahomans who brought together a team, set measurable goals, reimagined the possibilities, and executed on their vision to deliver Top Ten results.

Today, as I present my first budget, I ask you to join me in reimagining. Today, as we consider the state of our state, Oklahomans are presented with revenue growth of potentially $600 million, a 3.6 percent unemployment rate, rising wages and a spirit of optimism.

This is because of Oklahomans who are working hard, taking risks, opening new businesses, and creating jobs. The government does not create wealth, only the private sector can. In my administration, every policy decision will promote a healthy economy.

I want to also recognize President Pro Temp Greg Treat and Speaker Charles McCall who provided committed leadership over the past few years to make hard decisions to demonstrate our state’s support of core services that Oklahomans and job creators rely on. As I promised on the campaign trail, I brought them in to our process of reimagining the budget.

As I outline my administration’s priorities this year, I want to make it clear: as elected officials, we will not always agree on the specifics of every policy – and that’s ok. We are each elected for different reasons and because of specific issues.

But you will always find my office willing to work with you and to be open minded on policy differences, because what unites us in this room is that we are committed to reimagining how we can do state government better and deliver a brighter future for Oklahomans.

First, let’s reimagine state government. Our state Constitution vests supreme executive power in the Office of the Governor, but too often that executive power has been delegated by statute to boards that are not directly accountable to the citizens of Oklahoma. State government today is much larger than it was 112 years ago. As a result, accountability for those in power is spread too thin and, at times, it seems as of no one is really in charge.

The Health Department’s crisis in 2017 taught us this lesson, and the Legislature wisely restructured the agency’s board into an advisory role and gave the executive branch the authority to fire and hire a new leader. Let’s not wait for another crisis to start making this necessary reform across our largest agencies.

Oklahomans want three things: accountability, transparency, and results. I know the legislature wants it too.

Both Senate and House leadership are committed to addressing the structure of our state’s largest agencies so that government is held more accountable to the people. By granting the governor hiring authority, you will know exactly where the buck stops – at my desk.

But reform should not stop here. We will also seek to remove board members across state government when they have conflicts of interest. And we will look to sunset and consolidate boards and commissions where there is overlap and duplication. This is common sense reform.

My budget will prioritize funding to continue performance audits of the top 12 agencies. We will fund this effort by immediately recalling the $30 million that was given to the Health Department after the agency misrepresented their financial standing to the Legislature.

We will also reimagine state government so that our customers – Oklahoma taxpayers – are the primary focus. This is why I have placed a special emphasis in my administration on the digital transformation of state agencies. Today, I am calling for the Legislature to fund a $20 million grant program where agencies can apply to receive funds to bring their services into the 21stCentury and to make government more customer-centered and efficient.

Imagine digital driver licenses that are Real ID compliant. Imagine titles available electronically. Imagine one site to obtain occupational licenses and one site to pay taxes. It is time to get it done.

It is time to improve our government’s “D+” ranking in digital transparency and for the state government’s checkbook to be online, up to date, and easy to navigate. It is time for an online dashboard where you can monitor my administration’s progress on performance metrics we will set for delivering state services.

Turning our attention to education, my administration is committed to public education and understands that the large majority of our students attend public schools. Over the next few years, we will move the needle in outcomes. We will set high standards. We will enact reforms. We will invest in the classroom.

But we must first continue our investment in the teacher, because it’s not programs, curriculum, or resources that students will remember. The magic happens between the student and the teacher in the classroom.

We are confronted with a nationwide teacher shortage. This is not a problem unique to our state, but Oklahoma was among the hardest hit. With recent revenue growth, I aks the Legislature to bring our teachers to number one in our region in pay and benefits. This amounts to a $1,200 increase per teacher.

I am also calling for the Legislature to funds a bonus recruitment program, up to $5 million, to encourage certified teachers to stay in Oklahoma after graduating college, to return to the classroom after a hiatus, or to move to Oklahoma for the first time.

I applaud Representative Rhonda Baker’s collaboration to get this effort underway, and I appreciate House Minority Leader Emily Virgin and her caucus for their support of a continued pay increases for our teachers.

We must also standardize the certification test for Oklahoma’s teachers, get rid of the five-year renewal fee, and reduce unnecessary paperwork and bureaucracy on high-performing schools and instead shift resources to help schools who need it the most.

But these reforms and continued investment from the state will not be enough to make Oklahoma’s education system competitive. We must do the hard work of reimagining education.

Consider Cecilia Robinson-Woods, the Superintendent of the Millwood School District in Oklahoma City. After assessing the resources and unique challenges of her district, Cecilia reimagined ways to recruit and retain talent in her classrooms. It was important that teachers were not just skilled in their profession, but that they also were passionate leaders who could shape the culture of their schools and district. Cecilia partnered with Teach for America, utilized opportunities offered under state law, and implemented a new reading program. Today, the Millwood School District has seen dramatic, positive progress in outcomes.

Cecilia, thank you for being here today.

We must also look at ways to better stabilize the funding of public education. The fact that Texas is preparing to pass a teacher pay increase – at a cost of $3.7 billion – compels us to review and reform our state’s funding formula and to take the handcuffs off local communities wanting to compete, recruit, and retain the very best teachers. We must chart a bold course that allows for communities to do more for their students without being penalized with the loss of state support.

State government cannot fix education’s funding needs alone. We must stand arm-in-arm with communities, cities, and counties. Oklahoma is stronger when we are all working together.

The process of reforming the formula demands a reimagining of school districts so we can ensure not just equal funding per student, but also equal opportunity. This will take time to study what other states are doing, what is working, and what challenges we must address that are unique to Oklahoma. I am committed to be a continuous learner in this area and a leader in the discussion.

We must not forget that education should be first and foremost about our students, not about systems. I will sign into law any legislation that seeks to break down the silos between common education, career techs, and higher education so that we can better align the education experience for Oklahoma’s children and prepare them for tomorrow’s workforce of machinists, computer programmers, engineers, and more.

Next, let us take a moment to reimagine our state’s criminal justice system. We are number one in the nation for incarceration. To move the needle, it will require us to change the way we see the person who is in a cycle of incarceration for non-violent crimes.

Many years ago, I was introduced to Melinda who held the titles of daughter, mom, and fellow Oklahoman – but to the prison system, she was a drug offender. When I met her, she was looking for hope, for a better life for her son, and for an opportunity to change course.

Today, she has been an employee at Gateway for more than 13 years. Her entry into the workforce was key to remaining sober and to becoming a thriving individual in our society. Melinda’s story of redemption was possible because of a community of people who stepped in, walked with her, and gave her opportunity.

Melinda, you are why I believe in second chances. Thank you for being here today.

There can be more stories of redemption like hers. It is why my budget requests:

$1.5 million to Women in Recovery, a public-private partnership to help women identify the roots of their addictions and develop life skills, and $10 million to the County Community Safety Investment Fund, a criminal justice reform initiative the people of Oklahoma approved with SQ 781.

But money is not the sole action government must take. I am encouraged by legislation in the House to accomplish licensing reform for those with a felony. We must give Oklahomans re-entering society more opportunities to be gainfully employed and we must give employers more discretion on who they can hire.

We must also remember the people who work hard every day to keep our correctional facilities clean, safe, and operating. They are on the front lines of delivering core government services, and as revenue continues to improve, I urge us to consider ways we can better improve their work conditions and compensation.

In my budget, we will also use revenue growth to address two critical healthcare programs in Oklahoma: The Graduate Medical Expense Program to train doctors, a cost of $62 million, and the Children Health Insurance Program, a cost of $14.8 million.

These programs remind us why we must be judicious and thoughtful about seeking federal funds. In Fiscal Year 2020, these two programs alone will cost the State of Oklahoma $77 million that the federal government once paid – a 6.8 percent increase to the healthcare authority’s budget. When Washington, D.C. wants to end a program, we are left holding the bag and covering the cost.

While Medicaid expansion currently stops at a 90 percent federal match, we cannot assume that it will remain this high forever. The estimated $150 million price tag today for Oklahoma to expand Medicaid could leave us down the road fronting more than $1 billion when the federal government pulls back on its commitment. They’ve done it before and they will do it again.

Medicaid is the fastest growing expense in our state budget, and before we commit our state to accepting even more Medicaid dollars, Oklahomans deserve accountability and transparency with our state’s management of the Healthcare Authority.

Oklahoma is the only state in the nation where the governor does not have the authority to provide oversight of this agency. We are sticking out like a sore thumb, and this must change.

Healthcare is also preventative, promoting wellness through education, personal responsibility, and raising awareness. Today, I am announcing my partnership with the Oklahoma City Memorial Marathon to hold a Governor’s Relay Challenge, and I invite you to join me! I’ll be forming my own team to compete in the relay, and the team that wins will join me for lunch at the Governor’s Mansion later this year.

Let’s now move to the economy. In order to make our efforts in state government sustainable, we must first grow Oklahoma. We need more taxpayers, not more taxes.

We will reimagine our economy by diversifying our marketplace, strengthening our workforce, and encouraging Oklahomans to start new businesses. Our rules must be clear, our regulations must make sense, and our tax code must remain competitive with our neighbors.

At the Department of Commerce, I have hired the very best talent in the state to lead this critical agency, and they have set measurable goals and are running hard to tell the world Oklahoma is open for business.

To best equip the agency’s mission, I ask the Legislature to support additional funds for the governor’s Quick Action Closing Fund. Since its inception, the state has granted $11 million in total awards which attracted high paying jobs with the Macy’s large distribution center in Owasso, with Boeing’s relocation of the Aircraft Modernization and Sustainment business unit, and with the Commercial Metals Company in Durant and many more.

Today, the balance of Oklahoma’s Quick Action Closing Fund is $4.3 million. By comparison, the latest legislative report for the Texas Enterprise Fund indicates the state has awarded $609 million from its Quick Action Closing Fund, resulting in 94,347 jobs. In Arkansas, their fund has awarded over $120 million, resulting in 26,684 jobs.

You can help me sign on the dotted line for new opportunities to grow Oklahoma and demonstrate to the nation that Oklahoma is not afraid to compete with our neighbors and that we intend to win!

As we close our time together, let’s end by reimagining our state budget. I promised Oklahomans that we would get to the bottom of every tax dollar and I promised to be transparent and open about the budget process.

For the first time in recent history, the governor’s budget provides you with every tax dollar we could find across the 12 largest agencies, which are spending 90 percent of the state’s total budget. It is important we talk in total dollars. This was the one consistent request I heard from Oklahomans across the campaign trail.

In this budget packet I have also included agencies’ current performance goals. As we move forward together this year, my administration will be working with agencies to hire the best people, raise accountability, and deliver measurable results.

My vision for the budget is for it to become a meaningful resource each year, to establish a common language for lawmakers and tax payers and create a transparent budget process.

Now, as we dig into the numbers, instead of across the board increases in FY’20, my budget addresses more than $230 million in obligations and another $151 million in critical needs.

My budget also casts a bold goal for our state’s savings account, I have said often why I believe the state needs $2 billion in savings.

When we look at states where the economy depends on the price of oil, they place a strong emphasis on saving during the good years. One thing we know is true, oil prices are going to go up and oil prices are going to go down.

When energy prices tumble, it directly impacts the state’s Sales Tax collection, the state’s Income Tax collection, the Gross Production Tax, and various other revenue streams. We must be honest with ourselves and recognize that last year’s tax increases made us more dependent on the price of oil. We must be good fiscal stewards of this decision by creating more stability through savings.

At the end of FY’19, our Rainy-Day Fund will have approximately $874 million with no additional support from a stabilization fund often seen in oil-rich states. Meanwhile, Texas has $12.5 billion in total savings to weather another economic downturn. North Dakota’s total savings is more than $5.8 billion.

This is why I am setting a goal for Oklahoma to have $1 billion in our savings by the end of FY’20. To get there, we must set aside an additional $250 million from revenue growth.

Being conservative with our budget surplus today will protect Oklahoma from having to cut core services in the future.

As I close, let us remember, the future doesn’t just happen. We make it happen. As public servants, our responsibility and purpose are to ensure a better future for all four million Oklahomans. This will require us to be good listeners, continuous learners, committed communicators, and bold leaders – both inside the building and around the state.

Our vision is to make Oklahoma Top Ten.

Join me! As we work together, we will move our whole state forward.

God bless you and God bless the State of Oklahoma!

GOVERNOR-ELECT KEVIN STITT ANNOUNCES SECRETARY OF COMMERCE AND WORKFORCE DEVELOPMENT, NAMES COMMERCE DEPARTMENT EXECUTIVE DIRECTOR

Oklahoma City, Okla. (Jan. 3, 2019) – Governor-elect Kevin Stitt announced today the appointment of Sean Kouplen as the next Secretary of Commerce and Workforce Development, a cabinet position that will require Senate confirmation, and the hiring of Brent Kisling as the next executive director of the Department of Commerce.

“Sean Kouplen is a proven business leader and entrepreneur, full of vision, energy and passion for seeing our state thrive and achieve Top Ten status. His reputation and network, both in the state and nationwide, will help propel Oklahoma forward to achieve a robust recruitment agenda,” said Stitt. “Brent Kisling will provide a dynamic partnership with Kouplen, bringing a successful record of developing rural economies, crafting and executing major infrastructure projects and recruiting new job creators to our state. With their leadership, the Department of Commerce will play an integral role in Oklahoma’s Turnaround as the agency’s mission will focus on growing our state and diversify Oklahoma’s economy.”

Upon confirmation, Sean Kouplen will serve on the governor’s cabinet in an unpaid capacity, casting vision for the Commerce Department and playing a strategic leadership role in recruiting business growth and in the developmentof Oklahoma’s workforce.

Kouplen will also continue his role as Chairman and CEO of Regent Bank in Tulsa. Under Kouplen’s leadership, the bank has grown in size from $72 million to almost $600 million in assets since 2008. Kouplen has been named Central U.S. Community Banker of the Year, Oklahoma Small Business Financial Champion, one of Journal Record’s Most Admired CEO’s, Citizen of the Year in Bixby, Top National Young Alumni by his fraternity, and Top 100 MBA of the Century by Oklahoma State University (OSU).  Kouplen has held numerous local and statewide leadership positions and currently serves on the Board of Directors for MetaFund, Hillcrest South Hospital, OSU Foundation, SouthPoint Church and is a member of Young President’s Organization and Oklahoma Bankers Association. Kouplen holds B.S. and M.B.A. degrees from OSU.

“I am excited to work with the outstanding professionals in the Department of Commerce to grow Oklahoma’s economy. Our goals are to aggressively target businesses to expand in Oklahoma and educate all Oklahoma business and community leaders about our excellent economic and community development programs,” said Kouplen. “As a business owner and CEO, I bring a very pragmatic, strategic approach to the position. We will target those businesses, inside and outside the state of Oklahoma, who are most likely to expand here. We will also work hard to tell our story to fellow Oklahomans.  Our state has many remarkable business success stories and we want to highlight those and inspire the next generation of Oklahomans to stay right here and do great things.”

As Executive Director, Brent Kisling will oversee the operations of the Department of Commerce and will report to the secretary of commerce. Kisling is currently the executive director of Enid Regional Development Alliance where he is has worked since March 2009. Previously, Kisling served 8 years as the State Director for the USDA Rural Development in Oklahoma, an appointed position under the George W. Bush Administration. From 2001 to 2009, he oversaw the rural housing, utilities, and business programs statewide. Kisling has also served as the Chair of Leadership Oklahoma, the Governor’s Economic Development Marketing Team, the Oklahoma Economic Development Council, the Career Tech Foundation Board, and the OSU Ag Alumni Board.  In 2008, he was named one of the Top 40 Achievers Under 40 in Oklahoma by The Journal Record. Kisling is a graduate of Oklahoma State University and a resident of Enid where he is raising his two children with his wife, Jennifer.

“Brent will do an amazing job as Executive Director,” said Kouplen. “He is a very well-respected leader and economic development professional in our state. Brent will direct the Department of Commerce on a day-to-day basis while I will provide strategic support and focus my time on telling Oklahoma’s story and actively recruiting new business.  We will function together much like a Chairman and CEO in a business setting.”

“Sean and I have been friends for many years and I am thrilled to be working with him to help create an environment for businesses to grow in our state,” said Kisling. “Our vision for the Oklahoma Department of Commerce is to aggressively work with our state’s legacy companies to add jobs and investment and to actively pursue new industries to locate here.  We will work closely with local communities by providing creativity, support, and incentives to help them prosper.  Our job is to tell the world about Oklahoma’s many competitive advantages including our strong quality of life, low cost of doing business, low tax burden and excellent workforce.”

The following are quotes of support for the appointment of Sean Kouplen:

“Governor-elect Stitt has made an excellent choice in selecting Sean Kouplen as his Secretary of Commerce.  Sean is a creative and innovative leader.  Not only has he led his bank to dramatic growth, but he is also a devoted family man and serves his community in many capacities.  Sean will lead the way in developing new economic opportunities for Oklahoma and will provide wise counsel on the Governor’s cabinet.” 

– President Burns Hargis, president of Oklahoma State University

“Sean Kouplen has been a close friend for many years and he is a person with tremendous integrity, energy and business acumen. He is a selfless community leader who has built one of the country’s top community banking organizations. His creativity and drive will undoubtedly propel Oklahoma into a top economic growth state.”

– Jim Bridenstine, administrator of NASA and former U.S. Representative from Oklahoma

“Gov.-elect Stitt’s cabinet selection of Sean Kouplen as Oklahoma’s Secretary of Commerce shows he is working diligently to select proven leaders in business. In addition to being a member of the Muscogee (Creek) Nation, Sean is passionate about Native American issues and I know he will strengthen our Nation’s partnership with the State of Oklahoma. We look forward to working with him in his new role and with Gov.-elect Stitt to grow our economy together.” – Principal Chief James Floyd of the Muscogee (Creek) Nation

“I have worked with Sean Kouplen for several years and know him to be a tremendous supporter of this Hispanic business community. His company actually won a top award this year for their tremendous support of the Hispanic Chamber of Commerce and our partner businesses. We are looking forward to working closely with Kouplen in his new role as Secretary of Commerce to expand existing Hispanic-owned businesses and attract new ones to our state.” – James E. Sanchez, chairman of Tulsa Hispanic Chamber of Commerce

“Sean Kouplen is an outstanding business and community leader who cares deeply about our state.  Over the last ten years, he has built a tremendous company known for its nation-leading growth and amazing corporate culture.  Faith is a very important part of Sean’s life and he treats everyone he encounters with respect.  He will undoubtedly do an excellent job as Secretary of Commerce and I can’t think of anyone better to lead us toward top 10 economic growth.”

— Piyush Patel, author of Lead Your Tribe, Love Your Work and Angel Investor, founder of Digital-Tutors

“I have had the pleasure of knowing Sean Kouplen for over ten years, and in that time have watched him be a man of integrity in business, a wonderful father, and a strong leader in his church. As Secretary of Commerce, he will bring not only his knowledge of business, but also the knowledge that it is people and relationships that are the true key to success in any endeavor. The tools he will bring with him to this role will position the Department of Commerce and our state to be the best possible in the country. Our businesses will thrive and those looking to start a business or relocate will notice and want to tap into what we have.” 

– Krystal Crockett, president/CEO of Bixby Metro Chamber of Commerce

“Much of Oklahoma’s economy originates in rural communities across the state. It is heartening to have a person like Sean Kouplen named to lead economic development efforts, knowing that he brings great insights from his work in serving rural residents, businesses, farms, ranches and community organizations.  With his background in agricultural economics and his demonstrated acumen in leadership, Sean is well suited to ensure that all of Oklahoma’s economy grows and thrives.”

– Thomas Coon, vice president of agricultural programs at Oklahoma State University

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GOVERNOR-ELECT KEVIN STITT ANNOUNCES
CHIEF OPERATING OFFICER HIRE

Oklahoma City, Okla. (Jan. 7, 2019) – Governor-elect Kevin Stitt announced today the hiring of John Budd as Chief Operating Officer (COO), a new role in the governor’s office that Stitt campaigned on as a position tasked with diagnosing and helping state agencies deliver efficient, customer-focused services. Stitt will also appoint Budd as the Secretary of Agency Accountability, a cabinet title that will require Senate confirmation.

“In my conversation with governors from across the nation, I heard many credit their success to the hiring of a Chief Operating Officer in their administrations, a model not currently implemented in Oklahoma. This new COO role will be key to fulfilling my campaign commitment of delivering efficient, customer-centered government throughout our 120 agencies,” said Stitt. “I am excited to welcome John Budd, a businessman who has a proven record in helping companies successfully pursue operational transformation and deliver better services. Budd will be tasked with taking a holistic look at ways to more efficiently and effectively implement services and meet today’s modern demands on state government. I appreciate his willingness to join us in serving Oklahoma as we work to build a Top Ten future.”   

John Budd was most recently the executive vice president, chief strategy and business development officer for the Oklahoma City-based national headquarters of Sonic, America’s Drive-In®. He was responsible for Sonic’s strategic near-term and long-term technology path and was a driving force behind the development of enterprise wide strategy, the franchise development function (sales, real estate and construction), supply chain, enterprise program management, and the implementation of key technology initiatives and technology support.

Budd joined Sonic in 2013 after 16 years with the Boston Consulting Group, where he served as a partner and managing director. In that role, he worked with leading companies in the energy, industrial goods, consumer goods, retail, restaurant, and education sectors to help them grow, become more efficient, and provide better customer service. Prior to his work with Boston Consulting Group, he held various domestic and international roles of increasing accountability with General Electric.

Budd earned his bachelor’s degree in economics from the Wharton School of the University of Pennsylvania. He also received his M.B.A. from the Kellogg School of Management at Northwestern University. He serves on the Board for the Oklahoma City National Memorial Foundation and is the incoming Chair of the Oklahoma Academy for State Goals. Budd and his wife Rebecca live in Oklahoma City with their sons Jackie and Marcus.

The following are quotes of support for the hiring of John Budd:

“We are fortunate to have John’s talent in our state. John’s extensive business experience with Sonic and Boston Consulting Group driving strategic vision and change, and his understanding of the elements of long-term sustainable progress will be valuable in moving Oklahoma forward.”

– Kathy Taylor, former Sonic board member and former Tulsa mayor

“Our new governor and his administration are fortunate to have John Budd join their team.  I have known John for roughly a decade and have enjoyed my association with him during his time with the Boston Consulting Group and, for the last five years, as a senior officer of Sonic.  

 “John Budd is a very bright, very hard-working and committed professional who is able to constructively question the status quo and develop alternative paths for more effective delivery of services.  He does this in the most functional and collaborative manner.  Many companies throughout our country, including Sonic, have benefited from his skills. As a matter of fact, he had a very significant and positive impact on our company! 

 “John’s willingness to move to the public sector to apply his exceptional skills is a testament to his having the heart of a servant leader and will be to the benefit of this administration and our state, generally. I look forward to observing and appreciating his impact in this new arena and expect it to be considerable!”

– Cliff Hudson, former CEO of Sonic

 “Governor-elect Stitt has made a great choice in appointing John Budd as chief operating officer. Working side by side with John for the past five years, I saw and experienced his strategic thinking and ability to build processes to streamline business practices. As former director of finance for the state, I wholeheartedly believe John’s knowledge and skills will benefit state government and our citizens.”

– Claudia San Pedro, President of SONIC

“John will be a great asset to Governor Stitt’s administration. He brings the right balance of big picture strategy and real-life business acumen to the table. John has served on the Memorial’s Finance Committee and our Board of Trustees for several years and he provides great oversight and strategy. Our state will now benefit from his caliber of experience and expertise, which will in the long run will help prioritize our efficiency of state government.” 

– Kari Watkins, Executive Director of the OKC National Memorial & Museum

###

We feel the new surplus should be used to help shore up the other core functions of our state government with more pressing needs. Education, corrections and health care are currently facing issues that must be addressed to ensure that we build and maintain our state’s most important resource – our people.

We are grateful to the legislature for keeping their promise to emphasize the importance of investing in our infrastructure even through the recent lean years. If our state is strong – in all areas – then we are confident infrastructure spending will grow to match it.”

– AOGC Executive Director Bobby Stem

RETIREMENT from the U.S. Senate did nothing to temper Tom Coburn’s interest in the affairs of Washington or his concerns about the future of this country. They’re as evident as ever today.

Coburn, who turned 70 in March, wrote a book last year called “Smashing the DC Monopoly” about the need for an Article V convention of the states, and has traveled the country promoting that idea. He touched on it again last week in an interview with Rick Santelli on CNBC in a discussion about federal spending concerns.

“The only ultimate strategy is to have a constitutional amendment that requires fiscal discipline from Washington, which means you’re going to use generally accepted accounting principles, which they never use,” Coburn said.

“And No. 2, give them a period of time where they have to balance the budget, then you have a supermajority of the states say, ‘Yeah, you can spend more money than that.’ That’s the only way we’ll ever control it. We have to have a structural change in how we spend money in Washington.”

Read the complete story on NewsOK.com

Recently, I was asked to appear at the University of Oklahoma-Tulsa to discuss the twin subjects of “How to Restore Civility in Politics” and “What Are Oklahoma’s Greatest Challenges?” The audience was an impressive group of Tulsa civic and business leaders numbering some 200 people.

Civility? Easy. Listen before you talk. Say “Yes, sir” and “Yes, ma’am.” Speak before you shout. Don’t be a know-it-all. Don’t touch your neighbor. The usual stuff. Third grade.
Oklahoma’s greatest challenges? More difficult. Modernize the infrastructure. Don’t tax work. Don’t put everyone in jail. Make it easier to start a business.

Then, it got sticky. But I kept talking. We don’t teach hard enough courses in school. Look at our state’s latest National Assessment of Educational Progress test scores. From 2015 through 2017, we hit the guardrails. Our fourth graders rank below the national average in reading and math. Our eighth graders crashed as well in reading and math.

Read the complete story on tulsaworld.com

After a decade of teacher salary stagnation, Oklahoma lawmakers passed legislation last session giving teachers a deserved raise. Although we’ve made great strides and now rank second in the region in teacher pay, communities are still frustrated. They lack control at the local level to decide how their tax dollars are spent and they need more options and flexibility to do what makes sense for their districts.

This November, voters will have the opportunity to further strengthen our education system and allow local communities more control. If passed, State Question 801 would give local school districts greater flexibility to use existing property tax revenue for operational needs and expenses, including teacher pay and textbooks. Currently, a portion of local funds is confined to a separate building fund, which restricts usage to a narrow list of expenses. This is problematic for school districts with adequate facilities that would prefer to spend their local dollars in classrooms.

A measure intended to bring flexibility back to school funding, SQ 801 is not meant to be a cure-all. Neither is SQ 801 a mandate – if a district wants to keep some of its local dollars separated in its building fund, it will be able to continue to do so. But, we believe some Oklahoma districts and local communities would benefit from less government regulation and more local control, giving them the flexibility to spend their local dollars in the best way to help students, potentially including additional pay for teachers and more money in the classroom.

Read the complete story on the journalrecord.com

The Oklahoma Supreme Court on Friday threw out a petition seeking to repeal recent tax increases, ruling that it was misleading and fatally flawed.

Oklahoma Taxpayers Unite!, which has been circulating petitions to force a statewide vote on the tax hikes, now has less than than a month to file a new petition and gather more than 41,000 signatures. The deadline is July 18.

In their decision, justices said nothing prevents the group “from filing a new referendum petition, without the deficiencies identified today, and restarting the process of referendum.”

The Supreme Court – siding with groups that included the Oklahoma Education Association and the Oklahoma State School Boards Association – ruled that the petition being circulated was misleading and incomplete.

Read the complete story on NewsOK.com

The repeal of Obamacare didn’t work, and it’s understandable to want to try a different sort of fix for a health insurance system marked by skyrocketing costs. However, state-authorized expansion of short-term insurance plans is most certainly not the right way to do it.

An Executive Order signed by President Donald Trump last October will let states grant greater use of what is known as short-term limited duration insurance (STLDI). While giving power over these types of policy decisions back to the states is to be applauded, state leaders should be very careful before they let more people sign up for longer stints on short-term plans.

Doing so could pull healthy people from the government Health Insurance Marketplace – where those so-called Obamacare plans are sold – which will, in turn, drive up premiums for those who are left. Once premiums get high enough and constituents get angry enough, the political will might be found to finally repeal and replace the Affordable Care Act, aka Obamacare, but in the meantime, we will all pay a steep price.

We will pay in higher health insurance premiums. States themselves will pay in higher health care costs. The federal government will pay in higher subsidies. And then we will pay (again) in higher taxes to cover growing government expenses.

Read the complete story on townhall.com

WHENEVER government corruption and mismanagement occur, it’s asked why such abuses have been tolerated. Yet those outcomes may be a direct result of government structure, as a new report makes clear.

“Baked-In Corruption: The Need to Reform Boards and Commissions,” by the conservative 1889 Institute, points out the institutional structure of Oklahoma state boards and commissions often gives special interests outsized representation, fueling conflicts of interest, self-dealing, and groupthink.

“We’ve essentially given licensing boards, health boards, and educational boards a license to self-deal,” said the study’s author, Byron Schlomach, economist and director of the Oklahoma City-based institute.

The report notes “every licensing agency is headed by a board comprised mostly of individuals licensed to practice the profession they regulate. Virtually every decision they make impacts their own professional practice directly or indirectly and is almost bound to have financial implications for each of the board members.”

Read the complete story on NewsOK.com

ONE service provided by Oklahoma’s multi-county grand jury and state auditor’s review of the Health Department’s finances is that it undermined a talking point too often blindly accepted as fact: That most, if not all, state agencies have been “cut to the bone.” The investigative audit report on the Health Department shows how that claim can rely on rhetorical sleight-of-hand.

The audit reveals, “Although the agency claimed that the current financial ‘crisis’ is due in part to decreasing revenues, that claim does not reflect the full picture.”

Auditors determined the money directly appropriated to the Health Department by the Legislature had been cut by $7 million between the 2011 and 2017 budget years, but those cuts were more than offset by $20 million in increased non-appropriated revenue during that same period.

“In summary, total agency revenues increased by $13 million and total overall expenditures increased by $15 million,” the audit revealed.

Read the complete story on NewsOK.com

The referendum petition being circulated to repeal taxes passed by the Legislature is valid, and a protest filed by the Association of Professional Oklahoma Educators should be rejected, the Oklahoma attorney general’s office argued Friday to the Oklahoma Supreme Court.

In written arguments, Oklahoma Attorney General Mike Hunter’s office said the state Constitution has always afforded broad protection to the right of citizens to seek a referendum on legislation. That right was strengthened when voters approved State Question 640 and barred the Legislature from attaching an emergency enactment clause to bills that raise taxes.

The state Supreme Court should “zealously guard the right of referendum” and deny the protest filed by the Association of Professional Oklahoma Educators, Hunter’s office argued.

The high court asked the attorney general’s office for its opinion on the protest filed by the Association of Professional Oklahoma Educators and on a separate protest filed by the Oklahoma Education Association and other education groups.

Read the complete story on NewsOK.com

I have read with interest and reflection the opinion pieces and letters to the editor about the Oklahoma Taxpayers Unite effort to collect signatures for a referendum on the tax increases passed by the state Legislature.

I wholeheartedly agree we need to have our teachers at salaries that attract the best and the brightest to educate our most valuable resource, our children. We should have the highest-paid teachers in our area of the country and the most accountable.
But what happened in the Legislature will cause Oklahoma to fail, not succeed. The Legislature has raised over $1.1 billion in new taxes since 2015. But what they have not done is look at every state agency and ask what is the goal of each, how do they spend their money and are they transparent with the resources they get.

Bureaucracies by their very nature are not efficient. Their goal is survival and expansion and most are not mission-focused, but survival-focused. That is just human nature.

Take, for example, the recent news about the Oklahoma Department of Health. A commissioner’s slush fund? The firing of 188 state personnel because the accounting in the agency was so poor it did not know where the money was and the limitations on it? Then $30 million in additional appropriations that were not needed.

Read the complete story on tulsaworld.com

Justin Forney worked for the state Department of Health for 12 years as a public information officer, stationed in several county health departments, including Logan County.

Then, in the wake of a financial crisis that shook the department, Forney lost his job in March – the result of cuts of nearly 200 health department positions.

Forney is still unemployed. And on Thursday, as the news rolled out statewide that a grand jury had found the agency’s reported cash shortfall never happened, he felt a sense of shock.

He got a text from a former co-worker: “This was all for nothing?”

Read the complete story on OklahomaWatch.org

Rep. Faught Supports Veto-Override Special Session
Petition for Special Session would give chance to stop US 69 Bypass 

OKLAHOMA CITY – State Rep. George Faught today announced his support of a legislative petition authored by State Sen. Nathan Dahm calling for a special session devoted to overriding vetoes issued by Gov. Mary Fallin.

Article V, Section 27A of the Oklahoma Constitution allows for the Legislature to call itself into special session and set the guidelines without the governor’s input. Dahm’s petition would allow for the special session to take up overrides of Gov. Fallin’s vetoes from the 2017-2018 legislative term and allow for the members of the House and Senate to re-author and pass any measure Fallin has vetoed during her term, going back all the way to the 2011 legislative session.

“This would give lawmakers the opportunity to fix all the mistakes Mary Fallin has made and decisions she messed us up over the last eight years,” said Dahm, R-Broken Arrow.

One measure important to the Muskogee area that would be eligible to be heard during the special session would be Senate Bill 86. The legislation required the Oklahoma Department of Transportation (ODOT) to perform an economic impact study before any planned bypass around a community is placed on ODOT’s eight-year plan and required the department to present the study to the municipality, which would need to approve the bypass before beginning construction. SB 86passed the House by a vote of 62-27 and the Senate by a vote of 32-11.

“A veto override special session would give Muskogee another chance at stopping the U.S. 69 Bypass, and give input and protections to communities in the U.S. 69 corridor and across the state from future bypass projects,” said Faught, R-Muskogee, who served as the House author of SB 86.

Another potential measure eligible for a veto override is House Bill 1552, an important government transparency and accountability measure authored by Faught. HB 1552 would have brought much-needed reforms to the state’s regulatory process. It would have reformed the administrative rules process by restoring legislative control over government regulations, thus strengthening transparency and accountability and reining in unelected bureaucrats. HB 1552 passed the House by a vote of 71- 23 and the Senate unanimously.

“Gov. Fallin has failed Oklahoma citizens by vetoing legislation that is important to the Muskogee area and the state as a whole,” said Faught. “This veto-override special session would give us a chance to correct those problems, advance Oklahoma in a positive direction, and protect citizens from government overreach.”

Lawmakers are also considering overriding vetoes on pro-life, pro-gun, and government reform measures.

“Citizens can go to OKLegislature.gov to find out who their legislators are and how to contact them. I urge Muskogee area residents to call their legislators and ask them to sign Sen. Dahm’s veto-override special session petition. Give lawmakers another chance at stopping the U.S. 69 bypass, as well as overturning other vetoes of policy measures that would benefit Oklahoma citizens and businesses,” said Faught.

Rep. George Faught, R-Muskogee, represents House District 14, which covers portions of eastern Muskogee and western Cherokee counties, including the communities of Muskogee, Fort Gibson, Braggs and Webbers Falls. He chairs the General Government Oversight and Accountability committee.

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The Empire State should keep its wrong-headed, draconian, expensive emissions cuts to itself. Not content with fouling up its own energy policy, New York — with some of the country’s highest electricity rates — wants to foul up Arkansas’s, Louisiana’s, and Oklahoma’s, too.

New York state’s government-employee pension fund, run by Comptroller Thomas DiNapoli, owns a $100 million stake in American Electric Power (AEP), which provides electricity in the three other states mentioned above, our states. What the federal government wisely chooses not to do, activist shareholders like DiNapoli are trying to do instead.

DiNapoli drafted a shareholder resolution that would have compelled AEP to cut greenhouse-gas emissions in line with “reduction needs defined by the Paris Climate Agreement,” which President Trump has vowed to leave. But before this resolution was even brought to a vote, AEP caved to DiNapoli’s threat. So our electricity policy is now being set in deep-blue Albany.

Meeting DiNapoli’s demands won’t be easy. AEP has pledged to slash its greenhouse-gas emissions to 60 percent below 2000 levels by 2030 and 80 percent below the same levels by 2050. Emissions cuts of this magnitude are so steep that the parties to the Paris Agreement wouldn’t even agree to anything like them.

Read the complete story on NationalReview.com

The chairman of the Oklahoma Ethics Commission is accusing legislators of retaliating against the watchdog agency by illegally cutting its budget.

“I am appalled,” the chairman, John C. Hawkins, wrote in an email sent Sunday to state senators and House members. “The retaliation on a state agency by cutting their budget for doing their job is unconscionable.”

The Ethics Commission may sue.

Hawkins complained in his email that legislators took the action because of new restrictions imposed on gift getting and on becoming a lobbyist after leaving office.

Read the complete story on NewsOK.com

OKLAHOMA CITY (AP) — Even as they presented unified calls for increased funding, rural and urban educators had starkly different ideas of how to accomplish it, lawmakers said.

Teachers were allied in their calls for increased pay, additional classroom spending and reduced class sizes. Still, some lawmakers said they couldn’t help but notice some stark disagreement and mixed messages about how to solve those issues.

And as the walkout continued with little apparent legislative action, lawmakers said the divide appeared to be heightened by educators’ geographical and socioeconomic differences.

“The last two weeks, we almost had a civil war between the urban and the rural teachers,” said state Sen. Ron Sharp, R-Shawnee, a retired teacher and vice chair of his chamber’s education committee. “Your rural teachers, your rural superintendents began to realize this is turning into a battle of survival, and I don’t think they anticipated this.”

Read the complete story from the AP.