Governor’s Cost-Cutting Plan To Be Signed Into Law

OKLAHOMA CITY – Gov. Mary Fallin’s proposal to modernize the state’s vendor payment system will be signed into law on Tuesday.
House Bill 1086 proposes to utilize electronic payments methods such as direct deposit to pay the state's thousands of vendor invoices. The bill is sponsored by state Reps. Jason Murphey, R-Guthrie, Josh Cockroft, R-McLoud, and state Sen. Clark Jolley, R-Edmond.
Fallin initially called on legislators to approve the reform during her State of the State address. Fallin proposed the change after the Office of State Finance indicated that the state could be spending up to $13.50 per vendor payment for each payment made using traditional paper conveyances such as payment warrants. This compares to electronic payments which cost the state approximately five cents per transfer.
Currently, approximately 230,000 checks are made with traditional paper payment conveyances. House Bill 1086 will require nearly all vendor payments to be made by electronic payment and could result in million dollars of taxpayer dollars being saved.
“This is an important reform,” Murphey explained. “This should have occurred several years ago and I appreciate the leadership of Governor Fallin and Treasurer Ken Miller in introducing and supporting this innovative plan.”
“This legislation will help the Treasurer’s Office in putting the state’s checkbook online,” said Miller, who has pledged to provide the expanded financial transparency. “I appreciate Representative Murphey’s work on this issue. It’s a natural progression of the partnership he and I had in the Legislature and a step forward in providing government accountability.”
He noted that more than a dozen state treasurers maintain online checkbooks to track state spending.
In addition to the electronic payment proposal, House Bill 1086 represents an omnibus approach to using technology to enable taxpayer savings through efficiencies and spending transparencies. It includes Governor Fallin's proposal for a shared state payroll system which is also estimated to save 2 million dollars each year, the placement of common education spending transactions on the data.ok.gov website and a one-stop shop for many state documents and annual reports to be located in a searchable format for easy purview by the taxpayers at the website documents.ok.gov.
The law will go into effect later this year.


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2011 Legislative Session Wrap-up

Legislative Session Concludes

The 2011 legislative session concluded this week as lawmakers finished work on a number of bills.

First and foremost, lawmakers approved a balanced budget that dealt with a $500 million shortfall largely by cutting spending, just as working families do in tough times.

Redistricting plans were approved with bipartisan support, crafting new legislative districts in accordance with legal guidelines.

In addition, lawmakers also approved several major reforms in a wide range of areas.

Economic reforms

Lawmakers approved lawsuit reforms to make Oklahoma a more attractive place to do business.

House Bill 2128 caps vague noneconomic damages (commonly known as “pain and suffering”) at $350,000 in all civil actions. Under the bill, individuals could still receive unlimited awards for actual economic damages, such as lost wages and medical expenses.

Senate Bill 862 eliminates joint and several liability, sometimes known as the “deep pocket” rule, where each and every defendant in a tort lawsuit is liable for the entire amount of a plaintiff’s damage regardless of their degree of fault. SB 862 ensures that plaintiffs seek defendants who are most at fault rather than defendants with the most financial assets.

Senate Bill 865 requires that juries be instructed in civil cases that no part of an award for damages for personal injury or wrongful death is subject to federal or state income tax; and the jury should not consider income taxes when determining a proper compensation award.

                        Senate Bill 878 reforms workers’ compensation laws. The bill will reduce the fee schedule for medical reimbursement rates by 5 percent and require physicians and the workers’ compensation court to follow national treatment guidelines, called the Official Disability Guidelines, which is expected to also reduce medical costs.

Overall, the measure is designed to reduce “doctor shopping” that can drive up expenses, drive down attorney involvement in cases by encouraging mediation and other remedies, increase the use of vocational rehabilitation, and speed up the process for injured workers to get treatment.

 Pension Reform

            For decades, the financial soundness of our state’s pension systems has been declining. In the last 10 years, we have gone from having an unfunded liability of $6 billion to $16 billion.

            This year, lawmakers tackled that problem head-on, approving reforms that will collectively produce billions in savings over the next 30 years – the largest such debt reduction achievement in state history.

            The major reforms enacted require that cost-of-living adjustments (COLAs) be funded when enacted, and adjust the retirement age for those now entering the system to account for the increased life expectancy.

Education

House Bill 1456 requires that Oklahoma’s public schools be given an annual grade of “A” to “F” based on student performance on state tests. The new grading system will provide an easily understood way for parents to obtain a true apples-to-apples comparison between state schools.

            Senate Bill 346 ends social promotion by requiring students entering first grade in the 2011-2012 school year to master grade-appropriate reading skills by the end of third grade in order to be promoted to the fourth grade.

            Senate Bill 969 creates the “Oklahoma Equal Opportunity Education Scholarship Act.” The bill creates a tax credit for donations to scholarship-granting organizations or educational improvement grant organizations.

Scholarships funded through the tax credit program would serve children from low-income families and allow them to attend private schools. The legislation also funds grants to help rural schools increase offerings in areas where private school is not an option.

            House Bill 2139 grants the State Superintendent of Public Instruction full authority over personnel issues at the Department of Education. 

 Revenue/Taxation

            Legislation reforming Oklahoma’s property tax laws will go before the voters next year.

            House Joint Resolution 1002 allows Oklahoma citizens to vote to impose a 3-percent (or rate of inflation) annual cap that would limit future property tax increases.

            Under current law, property tax valuations can increase 5 percent each year.

Pro-life legislation

House Bill 1888 creates the Pain-Capable Unborn Child Protection Act, which bans abortions after 20 weeks of pregnancy. Scientific studies have shown that at 20 weeks an unborn child can feel pain. The bill exempts situations in which the life of the mother is at risk or when the mother faces serious risk of substantial and irreversible physical impairment.

            Senate Bill 547 ensures standard health insurance policies sold in Oklahoma or sold through a state health insurance exchange do not include elective abortion coverage. The bill prevents Oklahomans from unwillingly subsidizing abortion coverage simply by purchasing health insurance. Under SB 547, those who want abortion coverage could acquire it through optional supplemental coverage with a separate premium.

Public Safety

House Bill 2131 implements corrections reforms designed to reduce costs and ultimately increase public safety. House Bill 2131 expands community sentencing programs, modifies the governor’s role in the parole process for nonviolent offenders, and establishes requirements for members of the Pardon and Parole Board.

Government Streamlining and Transparency

House Bill 1086 creates the Transparency, Accountability and Innovation in Oklahoma State Government 2.0 Act of 2011. Among other things, the bill requires that all payments disbursed from the State Treasury be made only through an electronic payment mechanism and that the “data.ok.gov” website include all spending data subject to publication by the “School District Transparency Act.”

By implementing an electronic payment mechanism, the Office of State Finance predicts a savings of $3.6 million can be accomplished by moving from the current system to the electronic funds transfer system.  The assumption by the Office of State Finance is that the state will save a processing fee of $13.50 per check on 230,000 checks.

House Bill 1304, the Information Technology Consolidation and Coordination Act, is designed to make state IT operations more efficient, secure and effective. Its key proposal is to place all IT operations under the state chief information officer (CIO) rather than spreading the operations out across the state’s hundreds of agencies, boards and commissions.

            Oklahoma’s current IT operation has 76 financial systems, 22 unique time and attendance systems, 17 different imaging systems, 30 data center locations and 129 email and mobile device services. One of the goals of placing IT operations under the CIO is to streamline those services into uniform systems across state government. It’s estimated that the bill could save the state about $360 million over the next five or six years.

           

Taking On Texas

It is fitting that our upstart Oklahoma City Thunder is taking on a seasoned, veteran opponent in the NBA’s Western Conference Finals.

Like the Thunder, Oklahoma is on the rise. And like the Dallas Mavericks, Texas is an established commodity.

But Texas now has serious Oklahoma competition nipping at its heels, both on and off the basketball court. The public policies put forth by the Oklahoma Legislature this year are designed to make Oklahoma competitive with the nation’s best.

Years ago, Texas reformed how it handles lawsuits and workers’ compensation claims. The state placed limits on damages awarded through civil actions and made workers’ compensation system changes that provided increased savings to employers and put injured workers back on the job faster. Doing so helped Texas lure new companies and produce additional jobs. According to the U.S. Bureau of Labor Statistics, Texas led the nation in job creation last year.

However, the Oklahoma Legislature recently produced similar lawsuit and workers’ compensation reforms designed to bring the same results to our state. People are taking notice. A recent survey of 500 CEOs by ChiefExecutive.net ranked Oklahoma the eleventh best state for business, an increase of eight spots from last year.

On corrections policy, Texas, years ago, started putting low-risk, nonviolent offenders in community sentencing rather than in prisons, which alleviated the fiscal and social strains of overcrowded prisons.

Oklahoma took a similar step toward corrections reform this year through House Bill 2131.

Even with the progress Texas has made, it does trail Oklahoma in some areas.

First, we have Kevin Durant. We thank the University of Texas for grooming him. He is an Oklahoman now, and we’re just as proud to have him as he is proud to be here.

Second, and on a more serious note, Oklahoma has managed its plentiful water resources extremely well. The latest version of the Oklahoma Comprehensive Water Plan will help the Legislature identify the best strategy to effectively utilize this valuable natural resource.

Texas does not have that luxury. Without enough water to sustain growth, some Texas water districts have sued Oklahoma in hopes of winning access to our water.

Transportation is another area where Oklahoma is beating Texas. Oklahoma has made major investments of public dollars in its transportation infrastructure to ensure roads and highways meet our needs and remain under public control.

Texas, meanwhile, has started relying on private, international companies to build highways in urban areas and across the state. These companies charge for road use and are not accountable to the public. Texas drivers are paying increasing costs just to commute through cities and across the state.

On fiscal matters, Texas this year faced a state budget shortfall of $27 billion, or 15 percent of its last budget. Oklahoma’s state budget shortfall this year was $500 million, or 7 percent of last year’s state budget.

Hopefully soon, Texans will be watching the Thunder dribble past them to the Finals and Oklahoma move past them on the national stage.

Governor Mary Fallin Makes Appointments to Education Boards

OKLAHOMA CITY – Governor Mary Fallin today announced appointments to the board of regents for Rose State College, Northern Oklahoma College and Redlands Community College. The Oklahoma State Senate confirmed the nominees on Tuesday.

“These nominees are leaders in their respective fields and bring with them a commitment to ensuring our colleges and universities continue to provide a quality education to our students,” Fallin said.

Tracey Wills, Redlands Community College

Tracey Wills of Edmond is appointed to the Board of Regents for Redlands Community College. She is founder of The Wills Group, a company that specializes in health-care related business ventures.

Wills is a member of the Oklahoma chapter of the International Women’s Forum and the Women’s Presidents Organization. She also serves on the advisory board of First Liberty Bank in Oklahoma City.

In the past, Will has worked with the Redlands Community College Foundation and helped raise significant financial support for the foundation.

Wills is a registered nurse and graduate of Redlands Community College. She will serve a seven-year term and will replace Billy Pope.

Keith James, Northern Oklahoma College

Keith James of Enid is reappointed to the Board of Regents for Northern Oklahoma College. He operates JKJ Real Estate and Auction Company and has a farming and ranching operation in the Pond Creek area.

James has served on the Northern Oklahoma College regents since 1995. He was first appointed by Governor Frank Keating and reappointed twice by Governor Brad Henry.

He is active with Oklahoma Future Farmers of America and is a member of the Oklahoma State Auctioneers Association. He previously served on the Pond Creek–Hunter school board.

James is a graduate of Oklahoma State University. He will serve a five-year term.

Russell Smith, Rose State College

Russell Smith of Midwest City is appointed to the Board of Regents for Rose State College. He owns and operates Loudean Properties, a real estate development company.

Smith previously served as mayor of Midwest City. During his tenure, he served as secretary treasurer of the Association of Central Oklahoma Governments and on the board of directors of both the Oklahoma Conference of Mayors and the Oklahoma Municipal League.

He currently serves on the boards of the Midwest Regional Medical Center, Mid–Del Group Homes, and the Rose State College Foundation.

Smith earned an associate’s degree from Rose State College and a bachelor’s degree from the University of Central Oklahoma. He will serve a seven-year term and will replace James Howell.

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Oklahoma FY-12 Budget

Cockroft Column: Oklahoma's Budget Bills

House lawmakers spent a painstakingly drawn out day debating appropriations bills that form the state budget Friday. Although I supported most of what was negotiated between the governor and legislative leaders, I could not support one bill that essentially borrowed money to pay the bills for this year’s budget.

The proposed budget protects core government agencies like education, public safety, health and human services to a greater extent than other agencies. The cut for K-12 schools was held to 4.1 percent, a tough cut I would have liked to spread out more among less important areas of government spending. I was pleased though that supplemental funding was found for ad valorem reimbursements, which is money the state is behind on paying to certain schools.

I was also pleased that Rural Economic Action Plan funding remained in the budget, despite a cut. This funding helps volunteer fire departments keep our community safe. We also held public safety to a 4 percent cut. The Department of Corrections, which has to contend with a growing prison population, was held to a 0.5 percent cut that should prevent the furlough of corrections officers.

The transportation bond that I felt I had to oppose as a fiscal conservative would have authorized a bond to pay for transportation projects. There was bipartisan opposition to it, but it narrowly passed by a 51-45 vote. Whether or not we passed it, we could have funded road projects. This simply means we will be borrowing money to complete the Department of Transportation’s eight-year plan, rather than just finding the funding in the budget.

Overall, I think House leadership worked hard to try to negotiate a fiscally conservative budget, but there are many players involved and I think they did the best they could under the circumstances. If I were able to create the budget alone, I would have made different choices. To see the complete line item budget, go to my blog at: www.repjoshcockroft.blogspot.com.

Next week, I want to talk to you about the House redistricting plan. This plan will reshape our district and I want to ensure everyone knows exactly where the new district boundaries will be.

If you have questions or need information, please contact my office at josh.cockroft@okhouse.gov or (405) 557-7349.


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Oklahoma House approves $6.5 billion state budget

The budget bill now goes to the Oklahoma Senate, which is expected to take up the measure early next week. The House of Representatives approved legislation Friday containing a key piece of the $6.5 billion budget agreement for the upcoming 2012 fiscal year.

The House, after discussing House Bill 2170 for about three hours, passed the measure by a vote of 61-36. Republicans, who outnumber Democrats 70-31, voted for it, while Democrats and a handful of Republicans voted against it.
The measure now goes to the Senate, which is expected to take up the bill early next week.
The House approved the budget deal, which was announced earlier this week by the governor and GOP legislative leaders, in a rare Friday session. The Senate also is meeting Friday to take up its redistricting plan and budget-related measures.
House Speaker Kris Steele, R-Shawnee, said it's possible the House may be able to adjourn May 20, a week earlier than the last Friday in May deadline for legislators to wrap up their work.
The budget for the 2012 fiscal year includes cuts for agencies mostly ranging from less than 1 percent to 9 percent. Legislators face a $500 million shortfall in the 2012 fiscal year beginning July 1.
The $6.5 billion package is 3.2 percent less than this fiscal year's budget of $6.7 billion.
Legislators were authorized to spend $6.3 billion this session, but the agreement includes using about $200 million from various other sources. They include about $125 million in cash reserves, nearly $100 million in remaining federal stimulus funds and $20 million from various revolving fund accounts to increase the total to $6.5 billion.