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!

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

Reps. Sean Roberts, Teague Request Study on Legislation to Provide Accountability and Funding for State Agencies

OKLAHOMA CITY – State Reps. Sean Roberts and Tess Teague have requested a study to review the six pieces of legislation they filed during the 56th Legislature’s second extraordinary session.

Lawmakers can request studies on various topics to take place in the interim period between sessions. These studies give legislators an opportunity to dive deeper into issues without the distraction of a normal session.

“My constituents have been clear,” said Roberts, R-Hominy. “They aren’t happy with the way money is being wasted in state government, and they are tired of their tax dollars being lost to greed, incompetence and negligence. We owe it to our citizens to look at ways that we can save taxpayers money and still provide for our state’s core services. I believe these six pieces of legislation are a step in the right direction. I hope this study is approved and all my colleagues attend.”

The six bills were filed as part of the 2017 second special legislative session.

“New taxes aren’t the answer to a problem that stems from a lack of accountability and oversight,” said Teague, R-Choctaw. “It’s time for the Legislature to stop playing games with other people’s money and start passing legislation that addresses the problems our state agencies face.”

The proposed legislation includes:

• House Bill 1043XX, which enforces a performance audit of the State Department of Education. This would be performed by the state auditor.
• House Bill 1044XX, which requires the Commissioners of the Land Office (CLO) to provide every teacher with a $500 annual stipend for classroom supplies.
• House Bill 1045XX, which caps superintendent salaries to that of the governor’s. The governor’s salary is currently $147,000 per year. This legislation mimics federal law.
• House Bill 1046XX, which consolidates superintendents across Oklahoma’s more than 500 school districts. This would only affect counties with populations less than 400,000.
• House Bill 1047XX, which requires the state superintendent to submit to the Legislature and the governor a rolling five-year plan to meet existing and future public education needs for funding and policy reform.
• House Bill 1048XX, which reallocates $15 million of lottery funding for textbooks and curriculum technology.

“These measures are responsible reforms that add accountability to government and offer ways to provide funding for government services without raising taxes on Oklahomans,” said Roberts. “Finding solutions that don’t end with the government taking more money from citizens is why lawmakers are elected. I hope this study will help other lawmakers realize that there are other options to fund government – options that the people of Oklahoma demand.”

-30-

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

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.

Governor Mary Fallin Signs Budget Bill

OKLAHOMA CITY – Governor Mary Fallin today signed the Fiscal Year 2019 budget bill (Senate Bill 1600) into law, which includes historic teacher pay raises and increases for public schools as well as criminal justice reform measures that she recently signed into law. The $7.6 billion budget puts significantly more money toward education, mental health services, and public safety.

“The budget includes many of the priorities I have called for in my annual State of the State address to lawmakers the past three years. Core services of state government are prioritized throughout the budget. It provides for a teacher pay raise and additional funding for public schools as well as increased funding for mental health and corrections to implement criminal justice reform measures. The legislation also includes additional revenue growth to put Oklahoma on a stable foundation, and reduces reliance on one-time funds.

“The budget includes a 19.8 percent increase for common education, the largest appropriation for public schools in state history. The appropriation includes $353 million to fund teacher pay raises that average $6,100 per teacher, which move Oklahoma teacher from last in the seven-state region to second for average annual pay, and from 49th in the nation to 29th. When taking into account the cost of living, Oklahoma teachers will be the 12th-highest-paid in the country. It also has $52 million for support personnel pay raises, $24 million for flex health benefits; $33 million for textbooks, and $17 in new funding for the school funding formula.

“This budget includes $11 million for multiple criminal justice reform measures, such as:

• $5 million to the Department of Mental Health and Substance Abuse Services – $4 million to fund risk/needs assessments, and $1 million to drug and mental health treatment courts.
• $4.8 million to the Department of Corrections to fund a new system that will allow the agency to track and monitor offenders on probation in one system, and will allow for shared data regarding offenders to be shared in one database statewide.
• $500,000 for the Pay for Success program, which reduces the number of women sent to prison and the resulting impact incarceration has on their children.

“The budget also includes about $23 million for the Department of Human Services to help Oklahoma’s most vulnerable citizens. This will fully fund the Pinnacle Plan, which calls for improving services to our children in state custody, and restoring provider rates that had been cut, as well as addressing those on the Developmental Disabilities Service Division waiting list.

“For the first time in years, no agency is receiving a cut. This budget provides a long-term solution to the re-occurring budget deficits and helps reduce the reliance on one-time funds. The people of Oklahoma expect excellence and demand we solve our state’s problems. This budget provides an opportunity to bring forth an enduring reality for a promising future.” – Governor Mary Fallin

###

When I was governor in 2001, the wind industry made many promises. It promised us jobs but very few have been produced. It promised to manufacture here, but manufacturing is done out of state. It promised money for schools, but education as a whole is suffering and the industry refuses to help.

The wind industry’s claim that we have a moral obligation to honor our promises to them is nonsense when you consider it hasn’t honored one of its original promises to Oklahoma. The tax credit was designed to give a jump-start to a wind industry in its infancy in Oklahoma. It was sold as a low-cost way to broaden our already robust energy and economic development program. What was promised to cost the state less than $2 million annually when I was in office, has soared to estimates of $930 million over the next 10 years.

Industrial wind has been presented many opportunities to help find solutions to fix Oklahoma’s budget gap. When asked to participate in the Step Up plan and HB 1010XX to support education, these multibillion-dollar companies based outside of Oklahoma threatened to sue and file bankruptcy.

Private equity firms, international companies and Wall Street banks fund these wind farm operations and they have no vested interest in the future of Oklahoma, other than to harvest our natural resources and tax incentives. It’s time to stop taking money away from education, roads and services Oklahomans need, to write checks to this wealthy industry. For example, did you know that wind subsidies for one turbine exceed the starting salary of an Oklahoma teacher, even with the pay raise?

Read the complete story on NewsOK.com

Oklahoma’s teachers have just completed the first week of a statewide “walkout,” with no resolution in sight. (It’s a “walkout,” not a “strike,” as public-employee strikes are illegal in Oklahoma.)

Ironically, the state’s teachers had won much of what they wanted before the walkout even began. On Friday, March 23, the Oklahoma Education Association (OEA), the state’s largest teachers union, issued an ambitious list of demands: a $10,000 pay raise for teachers; $5,000 raise for school-support personnel; $200 million over three years in additional local-school funding; a 5 percent cost-of-living increase for retirees; and $500 million over three years to “fully staff state agencies” and raise state employee pay by $7,500 a year. In OEA’s estimation, this total package would cost more than $1.4 billion over three years.

In response, on Thursday, March 29 the Oklahoma legislature enacted a new teacher-pay scale that boosted average teacher pay by $6,100 — or 16 percent. This represented a remarkable win for teachers: In 2016, Oklahoma’s average teacher salary of $45,276 ranked 49th nationally, according to the National Education Association (NEA). The raise was funded via new taxes on gas, tobacco, and oil production, along with a new limit on income-tax deductions.

Yet, teachers were not placated — and on Monday, April 2, they started the walkout. The next day, Oklahoma Governor Mary Fallin signed a $2.9 billion appropriations bill for education funding in fiscal year 2019 — a 19.7 percent boost in spending over the current fiscal year, which ends June 30. The legislation includes $353.5 million for teacher pay (funding the $6,100 average raise); $52 million for support personnel pay; $50 million for textbooks and general state aid; and $24.7 million for health-care benefits. Fallin signed additional legislation providing a $1,250 annual pay bump for school-support personnel and tiered raises for state employees ranging from $750 to $2,000.

Read the complete story on thehill.com

Senator Tom Coburn to headline announcement of OKLAHOMA TAXPAYERS UNITE!

STATE CAPITOL BUILDING PRESS ROOM
PRESS CONFERENCE 1 pm, Wednesday March 28, 2018

Fiscal hawk and Taxpayers’ friend, Senator Tom Coburn, will announce the formation of a new Taxpayers’ coalition to take the fight to the legislative tax hogs, oath breakers and Political Class.

Oklahoma Taxpayers are fed up with legislative leadership that seeks first to raise taxes and refuses to make the structural, transformational reforms that fiscal responsibility requires. With HB1010XX, passed under duress and rules suspension March 26, the majority of the House of Representatives has chosen the path of more taxation instead of reform.

Oklahoma Taxpayers Unite! is a coalition of Oklahoma Taxpayers — civic leaders, concerned citizens, grassroots activists, and party leaders, working together, demanding constitutional, ethical, transparent, and fiscally responsible governance for the Oklahoma Taxpayers. Reminiscent of the group known as “Stop New Taxes” which almost repealed HB 1017 28 years ago with a referendum petition, and then Oklahoma Taxpayers’ Union, which successfully passed SQ 640, the new coalition reflects the disgust and anger with a Governor and legislature that has refused to lead, opting for new taxes instead.

Of the 79 House members who voted for new taxes, 11 of them previously signed a pledge for their entire term of office with Americans for Tax Reform, “to oppose [and vote against] any efforts to increase taxes.” Apparently, their word means nothing. Two of the oath-breakers are running for higher office in 2018. Seven members of the Senate signed the same pledge.

Oklahoma Taxpayers Unite! will offer its 7-point Taxpayers Platform for all incumbents and candidates to pledge to on their Word of Honor.

For further information, please contact Brooke McGowan at 704-526-9494 or Porter Davis at 405-343-0239.

###

OKLAHOMA CITY (AP) — A plan to give Oklahoma schoolteachers a pay raise has fallen short in the Oklahoma Senate after a package of tax increases to pay for it couldn’t get enough votes.

Amid a looming teacher strike, the Senate late Wednesday voted on a series of bills, including one to give teachers a nearly 13 percent, across-the-board pay hike.

But Democrats who say the revenue plan is inadequate and a handful of fiercely anti-tax Republicans joined to prevent the bill from getting the three-fourth’s vote needed to pass a tax increase. It included tax hikes on cigarettes, motor fuel, and oil and natural gas production.

Read the complete story from the AP.

OCPA Statement on OEA Demands

After the Oklahoma Education Association (OEA) released its demands, OCPA president Jonathan Small released the following statement:

“The OEA did not release a plan. Instead, the union, which represents a small percentage of Oklahoma teachers, released a set of demands with a total cost of $3.3 billion over three years. And, less than half of that money would go to teachers.

“The annual cost of the OEA’s demands, by year three, would be $1.4 billion. This is larger than any revenue package seriously considered by the Legislature in recent years.

“Teachers need a raise, just like our schools need reforms, but the goal should always be to improve student outcomes. That, obviously, is not served by a strike. And recent reporting in the Tulsa World suggests that many teachers are far more concerned about working conditions than they are about money. The OEA wants a narrow conversation about money, but the union’s own recent polling shows most Oklahomans are concerned about “accountability” (62%) and “personal responsibility” (39%) more than “investment” (27%).

“The Legislature should pass a teacher raise, coupled with reforms that put more control over pay in the hands of local districts. And there are many ways to give teachers a raise without increasing their taxes. If lawmakers are set on raising taxes to fund a teacher pay raise, we urge them to focus on the least damaging tax increases: increasing from two percent to five percent the gross production tax (during the incentive period) and a 75 cent per pack cigarette tax.

“Efficiencies and reforms include eliminating cash subsidies for wind and other renewable energy generation, cutting fraud in Medicaid, eliminating subsidies to filmmakers, and reforming the Commissioners of the Land Office and Tobacco Settlement Endowment Trust (which together control funds worth more than $3.5 billion) to direct some of their existing resources to teachers.”

###

OKLAHOMA CITY, Okla. – The Americans for Prosperity-Oklahoma (AFP-OK) and Oklahoma Senator Paul Rosino (R) are applauding Governor Fallin’s executive order she signed Tuesday which includes work requirements to Oklahoma’s Medicaid program.

“I applaud the Governor for directing the action on her work requirements for eligible state Medicaid recipients,” said Sen. Rosino. “In February, my weekly column stated that we should follow the lead of the Trump administration and implement in Oklahoma the stated work requirements that the Governor has just championed. Since I have been elected, personal responsibility and work requirements for able-bodied adults 19 to 64 has been one of my top priorities. I will continue my efforts to push and support any legislation that will make work requirements a reality in Oklahoma.”

“We applaud Governor Fallin for her forethought and leadership, which we believe will go a long way to help the state’s medically needy populations,” said AFP-OK State Director John Tidwell. “These efforts, along with necessary Medicaid audits will ensure that Oklahoma is a model for reducing dependency and fraud while expanding opportunities for everyone in our state.”

On Tuesday afternoon, Gov. Fallin issued Executive Order 2018-05, which instructs the OK Health Care Authority to file the necessary waivers and state plan amendments to incorporate a work requirement in the Medicaid program.

Read the complete story on kfor.com

It became official Thursday: The largest, most organized voice for Oklahoma teachers issued an ultimatum to legislators that teachers will shut down much of Oklahoma’s public-school system indefinitely unless serious money is found to boost teacher pay and education funding.

But signs of headwinds emerged quickly, foreshadowing a political stalemate that could pit hundreds of educators against a Legislature that has repeatedly quashed attempts to raise revenue for teacher pay raises.

The Oklahoma Education Association announced that educators will walk out on April 2 unless lawmakers find nearly $1.5 billion in new revenue, including $812 million for the upcoming fiscal year. The money would pay for teacher and state employee pay raises and restore hundreds of millions in education funding cuts.

The teachers’ union, however, didn’t spell out how to pay for the plan. Instead, OEA President Alicia Priest suggested lawmakers revisit earlier proposals that failed to get the three-fourths vote required of revenue bills. Among those was the Step Up Oklahoma plan, pitched by civic and business leaders, that would have raised taxes on cigarettes, motor fuel and oil and gas production. Other Step Up changes were proposed in separate bills.

Read the complete story from Oklahoma Watch

AFP Co-Hosts 2018 Growth and Opportunity Summit in Tulsa Saturday
Dr. Tom Coburn to headline conference

TULSA, Okla.—The 2018 Growth and Opportunity (GO) Summit is coming to Tulsa this Saturday, Feb. 24 at the DoubleTree Hotel in South Tulsa. The event will be headlined by a keynote address from former U.S. Senator Dr. Tom Coburn.

“We are thrilled to have Dr. Coburn address this year’s Growth and Opportunity Summit,” said. AFP-OK State Director John Tidwell. “Things are moving quickly at the State Capitol and the GO Summit provides an opportunity for citizens and voters to learn more about what the state legislature is up to and how they can impact lawmakers when they engage on issues.”

Among other learning opportunities available at the GO Summit, Oklahoma Council on Public Affairs Executive Vice President Trent England will give a lunch presentation on the Oklahoma Constitution, the longest state constitution in the country, and how the state can follow the law and best serve taxpayers. Rounding out the day will be a legislative roundtable with current members of the state legislature on the state budget “crisis” and what comes next for our state budget after the failure of the Step Up plan.

In between speakers will be breakout sessions that will provide a more detailed picture of issues that are being talked about at our State Capitol. These breakout sessions include:

• Hollywood Handouts: Even in Oklahoma Hollywood is gobbling up tax credits. Where is the money going and what to we do about it?
• Fact or Fiction: The Oklahoma Budget
• Occupational Licensing 101: I need a license to do that?
• Impacting your legislator: How to cut through the clutter and best communicate with your legislator.
• Healthcare and Medicaid Reforms: How we can audit and right size our system through common sense reforms.
• Inside the Oklahoma Education Funding Formula: What goes into the formula, what comes out and all the nonsense in-between.

The 2018 Growth and Opportunity Summit is presented by Americans For Prosperity-OK, Oklahoma Council on Public Affairs and Tulsa 912. For more information or to register for the conference please visit okgrowthsummit.com. Registration will also be available the day of the event.

STUDY TOUTS MODERN MEDICAID PROGRAM AS BEST CHOICE FOR OKLAHOMA
Report Highlights Best Practices And Budgetary Savings

OKLAHOMA CITY  (Feb. 20, 2018) –The Oklahoma Association of Health Plans has released a report that outlines how the state can achieve budget predictability by implementing a modern health care program for Medicaid recipients in Oklahoma.

The product of extensive research, the report provides a road map for improving health outcomes, providing tax dollar efficiency and accountability afforded by a modern, quality driven health care system for Oklahoma’s most vulnerable citizens.

“In this time of budget instability and a historic deficit, we as legislators must look at all ways possible to be fiscally responsible,” said Sen. Kim David, R- Porter. “Now is not the time for us to shy away from health care innovation. A proposal to modernize Oklahoma’s health care system will be presented during the 2018 regular session.”

The report will serve as a resource for legislators and Oklahoma Health Care Authority officials in understanding what the implementation of a modern health care will look like and how much money can be saved in Oklahoma.

“We have the opportunity to address inefficiencies, reduce redundant services and lowers costs, all while improving health care for Oklahomans,” said Rep. Glen Mulready, R- Tulsa. “This type of proposal must be seriously considered by our state legislature as we continue to examine policies that may have lasting savings in our state budget. Managed care does not cut corners in service. The healthier the overall program, the more savings are achieved.”

After the Oklahoma Health Care Authority halted the effort to design a risk-based managed care program for the age blind and disabled populations in 2017, the report highlights program infrastructure already in place in Oklahoma and lays out budgetary requirements and advantages as well as best practices that have been tested in other states.

The study was produced by Milliman, the world’s largest providers of actuarial and related services.  A full copy of the report is available at http://tiny.cc/OAHPMillimanStudy.

###

About Oklahoma Association of Health Plans

The Oklahoma Association of Health Plans is a not-for-profit organization, created in 1987, to promote quality and affordable health care through advocacy, communications and education. We are committed to cultivating a regulatory and marketplace environment that facilitates a robust health care financing market, product flexibility and innovation, and an abundance of consumer choice. As the voice of Oklahoma’s health plans and insurers, the Oklahoma Association of Health Plans represents the interests of our members on legislative and regulatory issues. We provide information and services, such as newsletters, bill summaries, legislative tracking, and on-line services. Our programs are designed to serve our member organizations and to inform Policymakers and the public about health care financing and delivery.

The Oklahoma House of Representatives defeated a $581 million package of proposed tax hikes late Monday night — creating more uncertainty about how the Legislature will balance the budget and fund a teacher pay raise.

Although a majority of House members voted in favor of the bill, the tally fell well short of the three-fourths majority needed to pass tax hikes in Oklahoma. The vote was 63 to 35. The bill needed 76 votes to pass. Fifty-three of the 72 Republicans in the House voted for the package, as did 10 of the 28 Democrats. One seat is vacant.

The bill was backed by Step Up Oklahoma, a statewide coalition of Oklahoma business and civic leaders.

Read the complete story on NewsOK.com

The Oklahoma House will vote this week on $40 million in spending cuts after lawmakers rejected on Monday a tax increase.

House Floor Leader Jon Echols said the cuts will be combined with whatever money is available this year to handle the remaining $63 million revenue shortfall.

That’s not all. More than $100 million is needed to fill obligations to public schools and the state’s university medical schools, but those payments will have to wait until the beginning of fiscal year 2019, which starts July 1.

Read the complete story on NewsOK.com

The Step Up Oklahoma revenue plan was within a vote of having enough support to pass the House of Representatives, BancFirst Executive Chairman David Rainbolt said Monday.

Rainbolt is co-chair of the organization, which has proposed more than half a billion dollars worth of tax increases meant to prevent another budget shortfall and help shore up this year’s budget obligations.

House Bill 1033 would need 76 votes to pass the House and advance to the Senate, where the support is more favorable. House lawmakers are scheduled to kick off Monday’s session at 1:30 p.m., but consideration of the bill, debate and the roll call could push the the outcome well into the afternoon.

Meanwhile, hundreds of teachers rallied in the Capitol rotunda. They showed up Monday to urge support for a $5,000 pay increase that’s part of the Step Up Oklahoma plan. The raise would be paid for with tax increase that are found in House Bill 1033.

Read the complete story on NewsOK.com

The Step Up Oklahoma revenue plan took a step forward just before noon today. Multiple bills cleared the House Joint Committee on Appropriations and Budget, including an 83-page bill that could create $581 million for Fiscal Year 2019 if it passes the full House and the Senate next week.

That, however, will be no easy task, as five of the seven Democrats on the House committee voted against the major tax proposal, which mirrors the major revenue bill that fell five votes short in November, with two primary differences.

First, a new $1-per-megawatt-hour production tax on wind energy has frustrated some members. Second, taking all existing oil and gas wells currently taxed at the 2 percent incentive rate to 4 percent has been included as a concession to Democrats, many of whom have requested the GPT rate go to 5 percent, if not 7 percent. HB 1033XX passed 21-5, with Rep. Jason Dunnington (D-OKC) and Rep. Ben Loring (D-Miami) as the only Democrats voting in favor. No Republicans voted against, with tax critics Rep. Kevin Calvey (R-OKC) and Rep. John Bennett (R-Sallisaw) absent. (Bennett arrived to the meeting for other bills.)

As a revenue bill, HB 1033XX would need to receive 76 votes in the House, which could hear it as soon as Monday. Republicans have 73 members in the House, and Democrats have 28. In November, 23 Democrats voted for what was called the “A+” plan, as did 58 Republicans. Between then and now, state business leaders formed Step Up Oklahoma, endorsing the tax increases many of them opposed in November so long as they were paired with the new wind tax and a series of government reforms.

Read the complete story on nondoc.com

Whether you are a fan of Step Up Oklahoma or think of it as Pay Up Oklahoma, there is no denying the plan is long on taxes and short on reform.

Step Up promoters say it will raise taxes but also reform state and local government to increase efficiency and reduce abuse. But other than an independent state budget office and some additional transparency, the plan does little to improve government.

With their priority on increasing tax revenues, Step Up supporters are saying Oklahoma’s government operations and funding systems are basically sound. Yet they plainly are not. Texas’ roads have long been better than ours, their teachers better paid, and local governments better funded. Yet Texas, until recently, spent less per capita than Oklahoma and still does when cost of living is taken into account. Besides, why is more than 13 percent of Oklahomans’ personal income for state and local government too little?

The fear seems to be that a government short of what it wants to spend presents an economic risk to Oklahoma citizens. But the real risk is continuing to do things the same old way, rather than reforming crony and inefficient policies. The Step Up plan reinforces the old system with its focus on how much government spends, not how it spends it.

Read the complete story on NewsOK.com