Rep. Jason Nelson

Weekly House Wrap

2012-02-09T10:00:00.000-06:00

State of State Launches Session

The 2012 legislative session started this week with Gov. Mary Fallin’s State of the State address, where she unveiled an ambitious agenda.

The headline proposal was her call for significant tax reform. The governor’s “Oklahoma Tax Reduction and Simplification Act” would immediately cut income taxes for all Oklahomans and simplify the tax code.

If approved, her plan would give Oklahoma the lowest income tax rate in the region aside from Texas.

In the short term, her plan would reduce the number of income tax brackets from seven to three with lower rates for all. Our current tax structure technically taxes the first penny you earn at a 0.5 percent rate, and increases to 5.25 percent for families with taxable income of $15,900.

Under the governor’s plan, starting next January, families with incomes of $30,000 or less would pay no income tax at all. Families with joint income of $30,000 to $70,000 would pay a 2.25 percent rate, and everyone above that level would pay a 3.5 percent rate.

Under the proposed rates, a middle-class couple making $40,000 a year would pay 37 percent less in taxes next year.

In the future, tax rates would be lowered another quarter-point every year the state experiences revenue growth of 5 percent until the income tax is completely eliminated.

To pay for the plan, the governor called for eliminating tax loopholes, carve-outs and other exceptions, as well as achieving greater government efficiencies.

The other big item in the speech was a plan to address Oklahoma road and bridge funding.

For years, Oklahoma has topped the national “bad bridges” lists. However, only 413 of Oklahoma’s 706 structurally deficient bridges are currently scheduled for rehabilitation or replacement within eight years, leaving 293 bad bridges in place.

Under Governor Fallin’s plan, Oklahoma will repair the remaining 293 structurally deficient bridges by 2019.

To accomplish this goal, Governor Fallin’s budget restores an additional $15 million taken from roads and bridges in the past and raises the cap on the state ROADS fund from $435 million to $550 million. Bumping the incremental contribution will have a compounding effect that generates an estimated $479 million over eight years to fund our most pressing road and bridge needs.

She also called for earmarking a larger share of motor vehicle collections to county roads.

Bill filings

This year, there were 962 bills and 26 joint resolutions filed in the Oklahoma House of Representatives for the 2012 legislative session, and an equally large number filed in the state Senate.

The committee process is now underway to thin out those numbers.

Tax credit constitutional amendment heads to full House

A resolution to place tax credit criteria in the Oklahoma Constitution passed the House Rules Committee on an 11-1 vote.

House Joint Resolution 1089 would create a ballot question allowing voters to decide whether to place the tax credit criteria adopted by the Task Force for the Study of Tax Credits and Economic Incentives in the Oklahoma Constitution.

HJR 1089 now goes to the full House for consideration. If approved by the House and Senate, the state question would be placed on the November 2012 statewide ballot.

The task force developed the criteria after months of intensive scrutiny of Oklahoma’s tax credit system revealed widespread shortcomings that can lead to credits costing taxpayers more than the credits actually benefit the economy. The task force found the shortcomings are largely due to a lack of accountability and structure within the tax credit creation process.

Under the criteria:

All credits must create or retain jobs;
All credits would require pre-approval by the state;
No tax credit would be transferable;
All tax credits would be subject to full transparency and regular auditing by the State Auditor;
Any proposed tax credit would have to be accompanied by a fiscal impact statement detailing how it would affect the state budget;
All tax credits would be subject to caps and specific termination dates;
No tax credit could be enacted within the final five days of any legislative session.

The resolution does not apply to tax deductions or exemptions for individuals.

The resolution is part of a larger tax credit reform package proposed by House leadership that is designed to save between $250 and $300 million in fiscal year 2013 and millions of dollars more in the future. It proposes:

Extending the current moratorium on all tax credits another two years;
Enacting a constitutional amendment establishing specific criteria for tax credits;
Ending transferability of tax credits;
Requiring all future tax credits and all credits placed on moratorium to meet the constitutionally-required criteria and receive legislative approval in order to be enacted or removed from moratorium.

Legislation Would Protect Assisted Living Center Residents’

Right to Choose Pharmacy

Legislation approved unanimously by the House Long Term Care and Senior Services Committee would allow assisted living center residents to continue doing business with local pharmacies without fear of penalty.

House Bill 2566 would ban assisted living centers from penalizing residents for using their choice of providers for medical services and supplies.

The bill was filed after residents in Western Oklahoma complained of having to pay a fee of roughly $150 to use a local pharmacy.

Committee Greenlights Long Term Care National Background Check Program

Legislation that would increase the safety of vulnerable Oklahomans was approved unanimously by the House Long Term Care and Senior Services Committee.

House Bill 2582 authorizes the implementation of a fingerprint-based National Background Check for certain classes of long-term care providers. The program will be supported by a grant from the Centers for Medicare and Medicaid Services of up to $2.75 million to cover 75 percent of costs in the first three years of the program.

The legislation would set up a fingerprint system operated out of the Health Department to run background checks on all people who work with Oklahoma frail and elderly citizens.

House Bill 2582 now proceeds to the House floor for consideration.

Committee Votes to Resolve National Guard Service Controversy

Legislation approved by the House Rules Committee would ensure any public official called up for service in the military could not be removed from office as a result.

The legislation addresses a controversy that arose last year when the Office of the Attorney General declared that Rex Duncan, district attorney for Osage and Pawnee counties, had officially vacated his job when he was mobilized by the Oklahoma National Guard to lead a combat adviser team in Afghanistan.

House Joint Resolution 1082 would amend the Oklahoma Constitution to exempt members of the National Guard or U.S. military reserve from the prohibition on holding a state and federal office at the same time. The attorney general’s opinion indicated that service in the military effectively represented holding a second office.

Duncan, a colonel in the Oklahoma National Guard, was mobilized shortly after taking office in 2011. After going on active duty, Duncan chose not to collect payment for the district attorney position. In his absence, a first assistant was in charge of the office.

House Joint Resolution 1082 will next go before the full Oklahoma House of Representatives. If approved by the Oklahoma Legislature, it will eventually be sent before the voters for final approval next November.

Committee Votes to Strengthen Regulation of Boxing Matches

After the tragic death of a Tulsa boxer at an unsanctioned event, a House committee voted to strengthen regulation of combative sporting events.

House Bill 2746 would give the Oklahoma State Athletic Commission regulatory authority over “combative sport” events, including bouts with boxers, kickboxers, mixed martial artists and wrestlers.”

The bill defines promoters to include any person or entity that produces, stages, sponsors, organizes or otherwise holds a “combative sports” event.

The legislation also increases the penalties for second-and-subsequent violations of the Oklahoma State Athletic Commission Act to include a fine of up to $5,000 and up to two years in prison.

The bill was filed in response to the death of George Clinkscale, a former University of Tulsa linebacker and father, who died after participating in an unsanctioned boxing event at a Tulsa church.

House Bill 2746 was approved by the House Economic Development, Tourism and Financial Services Committee. It will now proceed to the floor of the Oklahoma House of Representatives.

Committee Approves Bill Banning Lawmakers from State Jobs After Term Ends

Voters would have the chance to decide whether or not to allow lawmakers to take state jobs right after they finish their term in office under legislation clearing committee.

The House Rules Committee approved House Joint Resolution 1071, which would send a constitutional amendment to a vote of the people to prohibit lawmakers from receiving compensation from any state entity for two years after the end of the lawmaker’s term in office. The amendment, if approved by voters, exempts retirement benefits and compensation from a school, career technology district or institution of higher education.

Although there is currently a ban on lawmakers taking state jobs for two years after the end of their terms in office, that ban applies only to positions funded directly by legislative appropriations. That loophole has allowed lawmakers to accept jobs paid with federal dollars or fee revenue that is not appropriated.

House Joint Resolution 1071 now heads to the House floor for consideration.

First Day of Session Arrives, Governor to Give State of the State

2012-02-06T08:30:00.001-06:00

Today marks the beginning of the 2nd Session of the 53rd Oklahoma Legislature and the governor’s annual State of the State Address.

The House and Senate will convene at noon in their respective chambers briefly before senators move to the House Chamber for a joint session to hear from Governor Mary Fallin.

The governor will deliver the State of the State Address at approximately 1 p.m., today (Monday, Feb. 6)

You can watch the Gov. Fallin’s speech by clicking the Watch or Listen Live icon on the right side of my blog page.

I will do my best to tweet updates during the day including when the governor is about to speak.

If you’re near a television set check your local TV listings for viewing times. You can also view the speech online at the following locations:

Oklahoma House Web site: www.okhouse.gov

OETA: www.oeta.tv

KOSU radio: www.kosu.org

Additionally, some radio stations will carry the speech, including those on the Oklahoma News Network.

I will post the text of Gov. Fallin's speech as soon as it is made available.

Oklahoma Couple Starts Special Needs Ministry

2012-02-04T17:04:00.001-06:00

A young Oklahoma couple has launched a new ministry inspired by their young son Kash who has special needs.

Eric and Mykel McFall’s mission is to make churches aware of the opportunities and need to minister to families like theirs.

The Baptist Messenger highlights the McFall family in its February 2, edition.

Eric and his wife Mykel started McFall Ministries after serving 10 years in youth ministry. Driven by their faith in God and their experience as the parents of a child with special needs the McFalls have a burden “to minister to families and churches … and to help others better understand how to minister to families who have children with special needs.”

Training church and Sunday school leaders how to encourage and support parents of children with special needs is a particular focus of theirs according to their website.

In the story Eric mentions the high divorce rate among parents with children with special needs.

White named as OKDHS Interim Director

2012-02-03T18:47:00.000-06:00

Oklahoma City -- The Oklahoma Commission for Human Services has announced that Terri White (link opens in new window) will serve as the Oklahoma Department of Human Services (OKDHS) interim director. The action is set to take effect March 1, 2012, and comes as the agency prepares to initiate a national search to replace Howard Hendrick, who recently announced his retirement. The Commission’s vote was unanimous.

White, commissioner of the Oklahoma Department of Mental Health and Substance Abuse Services (ODMHSAS), will remain in her current position and stressed that she will not accept the OKDHS director’s post permanently. She said she was happy, however, to help in any way possible to find the right person for the position. She is slated to serve as interim director until the search is completed, a process expected to conclude no later than June 30, 2012. OKDHS is Oklahoma’s largest state agency with more than 7,000 employees and a budget in excess of $2 billion.

“I am honored to have been asked to serve in this capacity,” said White. “This is an important time for OKDHS as the agency moves forward, and I am committed to doing all that I can to advance the department and ensure that transition to new leadership is a success.

“OKDHS and its staff play an incredibly important role in shaping Oklahoma. Our effort to take care of our most vulnerable citizens and afford them the opportunities for a better life is something that truly defines us as a state and as a people. My role will be to continue good work that is already underway, to help grow success and prepare this agency to flourish during this time of change.”

The Commission has moved swiftly to fill the interim role and is committed to finding an excellent candidate to fill the position permanently. Chairman Brad Yarborough says he is pleased to have confirmed White as interim leader of the agency. He is enthusiastic about the Commission’s decision and believes that her selection will be of tremendous benefit to the OKDHS during this time of change.

“Commissioner White is doing a remarkable job at ODMHSAS,” said Yarbrough. “That agency works closely with OKDHS and she is familiar with our operations and services. We join with other state leaders who feel that she is a perfect fit to move into this position during the short term and continue moving the agency forward in a positive direction.

“She provides the Commission with the confidence that operations will be well-managed so that we can aggressively focus on the search process.”

White said that the quality of services and the dedication of employees at ODMHSAS were instrumental to her appointment as interim director.

“We have experienced tremendous successes at ODMHSAS,” she said. “This appointment reflects positively on the entire department and the work we have been able to accomplish over the past several years.”

White will split time between the two agencies and plans to work with key staff to ensure that operations run smoothly.

Terri White was named ODMHSAS commissioner in May 2007 and has established herself as a passionate advocate for individuals experiencing mental illness and addiction. She has received national recognition for her role in advancing recovery and evidence based programs, technological innovations such as telepsychiatry and the integration of behavioral health care into primary healthcare settings.

She was the first woman to serve as Oklahoma’s Secretary of Health, for former Governor Brad Henry, from 2009 to 2011; and, is a three-time honoree of The Journal Record's Fifty Women Making a Difference.

As ODMHSAS commissioner, White oversees a statewide network of services dedicated to providing needed mental health and substance abuse services to all Oklahomans. Her agency has an annual budget of approximately $300 million, 1,800 employees and holds contractual relationships with over 100 private providers.

Governor Mary Fallin today released the following statement on the appointment of Terri White.

“Commissioner White has an outstanding record of service at the Department of Mental Health. Her experience, both in providing services to Oklahomans in need as well as in managing a large agency, will serve her well as the new interim director at DHS. I applaud the Commission for making a swift and bold decision to quickly find an interim director, as well as outgoing Commissioner Howard Hendrick for his support in the matter.

“I am confident that Terri will not only competently manage this period of transition at DHS, but will also pursue improvements in services during that process. No one cares more about Oklahoma’s most vulnerable citizens than Terri, and it is comforting to know that DHS has a dedicated public servant and steady hand at the helm while the agency searches for a permanent director.”

Terri White Bio

Terri White, commissioner for the Oklahoma Department of Mental Health and Substance Abuse

Services, is a passionate advocate for individuals experiencing mental illness and addiction, and is on the forefront nationally in the advancement of recovery based programs, technological innovations such as telepsychiatry, and the integration of behavioral health care into primary healthcare settings.

White was named commissioner in May of 2007. She also served as Oklahoma Secretary of Health, for then Governor Brad Henry, from 2009 to 2011. She was the first woman in state history to serve in this capacity.

Before becoming commissioner of ODMHSAS, she previously held the positions of Deputy Commissioner for Communications and Prevention; Director of Communications and Public Policy; Management Analyst; and, executive director of two ODMHSAS facilities – the Tulsa Center for Behavioral Health Co-Occurring Unit and the Central Oklahoma Community Mental Health Center.

As Commissioner of the ODMHSAS, White serves as the CEO for one of Oklahoma’s largest state agencies. The ODMHSAS has an annual budget of approximately $300 million, and employs 1,800 Oklahomans in facilities dedicated to the care of individuals with mental illness and addiction, and holds contractual relationships with over 100 private providers in a partnership to expand access to care throughout Oklahoma.

In 2011, she was inducted into OU’s Anne and Henry Zarrow School of Social Work Hall of Fame. She received both her Master of Social Work and her Bachelor of Arts in Social Work from OU.

White is a three-time honoree of The Journal Record’s “50 Making a Difference” program and a 2011 inductee into its Circle of Excellence. She is a member of the National Association of State Alcohol and Drug Abuse Directors, the National Association of State Mental Health Program Directors, and a founding member of the For Youth Initiative.

She and her husband, Scott Reed, have one son, Asher.

Nelson Urges Salary Freeze for All School Superintendents

2012-02-01T16:09:00.001-06:00

Encourages End to Hypocrisy

OKLAHOMA CITY – Now that many lawmakers are calling for a freeze on judicial pay and the salaries of all statewide officeholders, state Rep. Jason Nelson said it’s time to also freeze school superintendent salaries.

“Last year we saw hundreds of instances of superintendents getting pay raises while furloughing teachers and increasing class sizes,” said Nelson, R-Oklahoma City. “If it doesn’t make sense to give statewide officeholders a pay raise while Oklahoma is climbing out of recession, the same thing holds true for school superintendents at a time when education budgets have been cut. They should not be getting pay raises when teachers are being asked to do more with less.”

In a recent report, Oklahoma Watchdog found that 356 Oklahoma district superintendents (more than two-thirds) received some form of compensation increase this year. The combined expense of those raises was an extra $1.4 million annually (http://oklahoma.watchdog.org/2535/did-your-superintendent-get-a-raise-this-year/).

Oklahoma Watchdog found that 37 of the superintendents receiving raises oversaw districts placed on the State Department of Education’s “Needs Improvement” list and 16 of those individuals received raises of $5,000 or more (http://oklahoma.watchdog.org/2592/majority-of-districts-on-needs-improvement-list-gave-superintendents-more-money/).

The Board of Judicial Compensation recently recommended pay increases for judges. Since the compensation of judges and statewide officials is linked, both would get a raise under that proposal.

State Rep. Scott Inman, leader of the House Democratic caucus, has been one of the most vocal critics of potential pay increases for statewide officeholders even though none of those officials could receive a salary increase during their current term in office.

Nelson said the Del City lawmaker should now join him in opposing superintendent pay raises.

“To protect school funding, we have to do more than oppose phantom pay raises that no current statewide officeholder is eligible to receive,” Nelson said. “It is ridiculous to complain about phantom pay raises for current statewide elected officials while ignoring $1.4 million in real pay raises for superintendents across the state.”

Last year, Nelson filed House Bill 1746 to require schools to spend at least 65 percent of funds on direct instructional activities within three years.

That bill included a provision that would have prevented superintendents from furloughing teachers without first having their financial plan reviewed by the State Board of Education so that classroom teachers would be protected.

“My legislation would have protected teachers from layoffs and furloughs, yet it was opposed by superintendents and their allies, including Representative Inman,” Nelson said. “I hope he and other opponents will now join me in standing up for teachers.”

Nelson praised State Superintendent of Public Instruction Janet Barresi, who announced she would not accept a pay raise when the issue was first raised this month.

“Superintendent Barresi did the right thing for Oklahoma students,” Nelson said. “Given that many local school superintendents are paid more than the governor or state superintendent, there is clearly no reason for local administrators to get a pay raise at the expense of teachers and classroom funding. It’s time to freeze superintendent pay.”

Oklahoma’s Multicounty Grand Jury to Meet Tuesday

2012-01-30T16:05:00.000-06:00

OKLAHOMA CITY – The state’s multicounty grand jury will reconvene Tuesday in Oklahoma City.

Scott Pruitt

The grand jury will meet Tuesday, Jan. 31, through Thursday, Feb. 2, at the Oklahoma Attorney General’s Office, 313 NE 21. The last session was held in November 2011. The grand jury did not meet in December.

The state’s 13th multicounty grand jury is led by Assistant Attorney General Charles Rogers, chief of the AG’s Multicounty Grand Jury Unit. Thus far, grand jurors have returned 13 indictments, involving 14 defendants, in cases filed in Cleveland, Harper, Pittsburg and Oklahoma counties.

The multicounty grand jury was requested by Attorney General Scott Pruitt and approved by the Oklahoma Supreme Court on Jan. 27, 2011.

The multicounty grand jury has jurisdiction to investigate criminal matters in all 77 counties, assisting local law enforcement as well as handling matters of state interest.

The state’s 12th multicounty grand jury concluded in September 2010 with 10 indictments and assisted 145 federal, state and local law enforcement agencies.

Grand jurors meet to hear testimony two to three days each month. All grand jury proceedings are closed to the public.

Cockroft Seeks November School Board Elections

2012-01-29T21:51:00.000-06:00

OKLAHOMA CITY (January 25, 2012) – Seeking to increase voter participation, state Rep. Josh Cockroft has filed legislation that would place all local school board elections on the November general election ballot.

“Under the current system, instead of electing school board members who represent the views of a majority of Oklahomans, we find school board members who represent the views of the establishment are elected through voter-turnout machines,” Cockroft said. “Little emphasis is put on these elections in odd times of the year; therefore our students suffer as a result. If we are really as committed to education as we say we are during campaign years, then this is an easy step to take.”

Currently, school board elections are held on the second Tuesday in February or on the date of the presidential primary every fourth year.

House Bill 1544 would place all school board elections on the second Tuesday of November in odd-numbered years and the first Tuesday after the first Monday in November of any even-numbered year.

The legislation also changes the terms of school board members so that every board member in Oklahoma serves a four-year term with elections staggered every other year. Currently school board members have terms of three, four, or five years, depending on the size of the school board.

Cockroft noted growing support for moving school board elections to November, including a September 26, 2011 editorial in The Oklahoman (“Moving school board elections might help counter voter apathy”) and a Journal Record column by Oklahoma City University law professor Andrew Spiropoulos (“Taking back control of our schools”). Lt. Gov. Todd Lamb has also endorsed the proposal.

“If we want our schools to truly improve and thrive, we must do more to involve the entire community in their future,” Cockroft said. “Forcing school board candidates to appeal to a broad electorate instead of status-quo special-interest groups will result in better policy in each district and a better future for Oklahoma students.”

House Republicans outline tax credit reforms

2012-01-29T21:44:00.000-06:00

OKLAHOMA CITY – Oklahoma’s tax credit system would undergo widespread reforms under a plan outlined by House Republican leaders last week.

“A tax credit should benefit taxpayers more than it costs them. Period. That hasn’t been the case in Oklahoma, but under this plan, it would always be the case,” said Rep. David Dank, R-Oklahoman City, chairman of the joint legislative Task Force for the Study of Tax Credits and Economic Incentives.

Dank said meaningful tax credit reform is an important first step for the Legislature to take as it considers reducing and phasing out the state’s personal income tax.

“We need to remember that we cannot accomplish real tax relief for all Oklahomans until we put an end to the costly sweetheart deals that have been handed to a very few in the past. Those giveaways cost us hundreds of millions of dollars each year. Ending tax credit abuse is one vital ingredient in assuring lasting tax relief for all,” Dank said.

The strategy outlined today would save between $250 and $300 million in fiscal year 2013 and continue saving millions of dollars annually in the future. It proposes:

Extending the current moratorium on all tax credits another two years;
Enacting a constitutional amendment establishing specific criteria for tax credits;
Ending transferability of tax credits; and
Requiring all future tax credits and all credits placed on moratorium to meet the constitutionally-required criteria and receive legislative approval in order to be enacted or removed from moratorium.

“Oklahoma’s tax credit system today is a big block of Swiss cheese with no rhyme or reason whatsoever to all its holes and cutouts. It’s time to wipe the slate clean and start over,” said House Speaker Kris Steele, R-Shawnee. “This policy is as pro-growth and fiscally conservative as it gets. It’s the right thing to do for taxpayers and will result in a better tax credit system that leads to economic growth without wasting taxpayer dollars.”

If all the reforms are enacted, all tax credits placed on moratorium would have to be brought back one-by-one by affirmative votes of the Legislature under criteria that would be in the state Constitution. Future credits would also require legislative approval and would have to meet the constitutionally-required criteria.

Steele plans to seek a constitutional amendment that would place the tax credit criteria adopted by the task force in the Oklahoma Constitution. House Joint Resolution 1089, by Steele, would send the criteria to a vote of the people in November. If approved, the criteria would be placed in the Constitution.

Under the criteria:

All credits would require pre-approval by the Legislature;
No tax credit would be transferable;
All tax credits would be subject to full transparency and regular auditing by the State Auditor;
Any proposed tax credit would have to be accompanied by a fiscal impact statement detailing how it would affect the state budget;
All tax credits would be subject to caps and specific termination dates;
No tax credit could be enacted within the final five days of any legislative session.

“It protects taxpayer dollars – plain and simple – and ensures all tax credits actually benefit the state,” Steele said. “But get ready, because as soon as we speak a word of this proposal, special interest groups are going to start lobbying tooth and nail in defense of their credits. Our message to them is simple: If the credit meets the criteria, the credit is useful and can stay, but if it fails the criteria, it’ll have to go.”

House Bill 2978, by Dank, would statutorily enact the criteria.

House Bill 2976, by Dank, would extend the tax credit moratorium that has been in place since 2010 for another two years. The extended moratorium only applies to tax credits. It does not apply to tax incentives such as the Quality Jobs program and certain engineering and oil and gas incentives that Dank said have adequate safeguards and produce net economic gains that exceed the cost of the incentives.

“An extended moratorium gives the Legislature additional time to consider the worthiness of each individual tax credit and to put in place specific criteria the task force believes must apply to all tax credits, be they existing or future proposals,” Dank said.

HB 2979, by Dank, would end transferability of tax credits.

“Transferable credits are bought and sold like poker chips by folks who’ve provided zero services to the state. This practice was identified by the task force as perhaps the most constitutionally questionable aspect of the entire system. It must end,” Dank said.

House Bill 2977, by Dank, would extend the Task Force for the Study of Tax Credits and Economic Incentives for another year, until January 2013.

“It benefits us to have the task force continue the analysis it started last year and serve as a watchdog as this reform process plays out over the next few years,” Dank said.

Rep. Earl Sears, the House Appropriations and Budget Committee chairman, said the reforms will have a direct benefit on the FY 13 state budget and future budgets.

“We’re talking about hundreds of millions of dollars here that we can use to fund core services or return to taxpayers. It’s a significant opportunity for us,” said Sears, R-Bartlesville. “I’ve been honored to be part of the task force and believe Chairman Dank’s leadership has been outstanding. This is what good, honest government is all about.”

NOTE: For accompanying video, go to http://www.okhouse.tv/iViewVideo.aspx?VideoID=403

School Choice Week Set by Governor Fallin

2012-01-22T19:31:00.000-06:00

Oklahoma City - Governor Mary Fallin has declared the week of January 23, 2012 "School Choice Week" in the State of Oklahoma.

Fallin stated in her proclamation, "[A]ll children should have the 'right' to attend the highest-quality schools possible."

Fallin recognized in her proclamation that school choice is a bipartisan issue. She also mentioned that there are great teachers in traditional and charter public schools and in private schools who are committed to educating children.

Government Modernization, Pension Reform Plans Announced

2012-01-22T15:33:00.005-06:00

OKLAHOMA CITY – House Republican leaders last week unveiled another round of policy proposals designed to make government more efficient and fiscally stable.

Next session, Rep. Jason Murphey and other House Republicans will carry a series of government modernization proposals to continue consolidating and improving duplicative or ineffective state services, while Rep. Randy McDaniel will carry proposals to continue reforming the state’s fiscally unstable pension systems.

The proposals are part of the House Republican commitment to fiscal conservatism, saving taxpayer dollars and improving efficiency across state government.

“Government efficiency is now the rule rather than the exception,” said House Speaker Kris Steele, R-Shawnee. “As we continue building a pro-growth Oklahoma, we must continue bringing fiscal order to state government. These proposals are all critical to that effort. We’ve promised the public a more effective, fiscally stable government, so we’re intent on delivering one.”
Government Modernization

Murphey, chairman of the House Government Modernization Committee, noted that legislators “cleared the deck” in 2011 by passing more than 20 pieces of government modernization legislation that were later signed into law by Gov. Mary Fallin.

“We left nothing on the table,” said Murphey, R-Guthrie. “Last year was a tipping point, so this year we’re going to take that momentum and run with it.”

Murphey named several House Republicans who will carry government modernization legislation next session:

Rep. David Derby, R-Owasso, will carry legislation consolidating the state’s fiber network to include OneNet;
Rep. David Brumbaugh, R-Broken Arrow, will carry legislation on purchasing, education spending transparency and fleet reform;
Rep. Elise Hall, R-Oklahoma City, will carry legislation improving transparency into the state’s bond indebtedness;
Rep. Josh Cockroft, R-Tecumseh, will carry legislation creating a one-stop-shop for open records requests through the office of Chief Information Officer Alex Pettit;
Rep. Aaron Stiles, R-Norman, will carry legislation building on his business licensing one-stop-shop legislation from last year;
Rep. Lewis Moore, R-Arcadia will carry legislation to reform the way the state manages state agency workers’ compensation spending; and
state House Speaker-designate T.W. Shannon, R-Lawton, will carry legislation requiring reforms to the management of state assets.

Murphey will carry two bills focusing on purchasing reforms and transparency.

“House Bill 2197 will focus on purchasing reform and will create options for higher education to take advantage of some of the savings we have been able to enact in past purchasing reforms,” Murphey said. “The intent of House Bill 2196 will be to create online information in a dashboard-type performance matrix to aid the public and press in getting agency data and gauging agency effectiveness.”

An example of a government agency performance matrix can be found at track.dc.gov.

Steele will carry a follow-up to House Bill 2140, last year’s government agency consolidation bill. The follow-up bill, HB 3053, would consolidate the Merit Protection Commission and State Bond Advisor into the Office of State Finance and rename OSF the Office of Enterprise and Management Services. HB 3053 would also consolidate the Oklahoma State and Education Employees Group Insurance Board and Employment Benefits Council Board into the Oklahoma Health and Wellness Board.

Steele noted that as a package, the government modernization legislation of the two-year 53rd Legislative Session is expected to generate hundreds of millions of dollars in savings.

“These reforms are huge parts of our larger effort to find savings across government so we can lower the tax burden on all Oklahomans,” Steele said.
Pension Reform

McDaniel, chairman of the House Pension Oversight Committee, noted that while last year’s pension reforms shaved more than $5 billion off the state’s unfunded liability, more needs to be done to further stabilize the state’s pension systems.

“The goal is to put all our systems on a sustainable path, which would be a notable accomplishment for public workers and taxpayers alike,” McDaniel said.

Much of last year’s pension reform legislation focused on the pension systems for teachers, state employees and judges, so McDaniel will carry legislation this year to improve the fiscal stability of the firefighter and law enforcement pension systems.

“We have negotiated with representatives from both the firefighter and law enforcement organizations. I think we have come to an agreement that is fair to our public safety employees and fair to taxpayers,” McDaniel, R-Oklahoma City, said. “Employees and employers will both pay a little more into the system in order to ensure the pension plans are financially strong over the long run.”

McDaniel will also file a resolution seeking a constitutional amendment that would require more accountability in future pension system decisions.

“The constitutional amendment contains the fundamental principles of proper pension oversight. We need a higher law that takes into consideration the future generations of Oklahomans,” McDaniel said.

The amendment would:

(1) Protect plan assets by prohibiting diversion of pension funds to other uses;
(2) Institute a prudent investor rule to ensure wise investments of pension funds;
(3) Reduce future debts by directing adequate funding to pension systems;
(4) Require funding standards and practices to be established before additional benefits are authorized.

NOTE: For accompanying video, go to http://www.okhouse.tv/iViewVideo.aspx?VideoID=400

Lamb Issues Broad Policy Report on Eve of Session

2012-01-22T14:49:00.000-06:00

OKLAHOMA CITY - Lt. Governor Todd Lamb published his 2012 Policy and Issues Report last week. The report contains ideas, advice and suggestions from Oklahomans from every corner of the state.

In the year since Lamb took office he has visited all 77 counties asking one important question, “What impedes your opportunity for growth?”

Attendees of Lamb’s town hall meetings have included people from all walks of life according to the report. The report is a distillation of what Lamb has heard from those who have attended his meetings.

The report has been presented to Governor Mary Fallin and legislative leaders before the 2012 legislative session begins.

The report is divided into two parts. The first is Lamb’s vision for the future of the state. The second contains the many ideas gleaned from his conversations while traveling the state.

The income tax, education, water and the creation of jobs are among the several topics covered in the report.

Lamb says the report is intended to spark “further debate and discussion” by legislators as they look for ways to make Oklahoma more competitive economically.

“Oklahoma is the best state in the nation,” Lamb said. “It’s time we compete with other state in something besides football.”

An online copy of the report can be obtained on the Lt. Governor’s website.

This Session to be Morgan’s Last

2012-01-21T19:31:00.001-06:00

OKLAHOMA CITY – State Rep. Danny Morgan announced earlier this week that he has decided not to seek reelection. He will complete his current term in office, which runs through Nov. 1.

With term limits in place, Morgan would have been eligible to run for office for another two-year term.

Morgan, 52, said the decision to step down at the end of his fifth term in office was difficult to make, but in the best interests of his family and his family business.

“I am truly honored to have represented my hometown and surrounding communities here at the Capitol, and I know I did my best to voice their interests and concerns over the years,” said Morgan, D-Prague. “I never took lightly the trust my constituents instilled in me to act on their behalf, and I will always treasure and be grateful for this experience.”

Morgan served as the Mayor of Prague prior to running for state representative in House District 32, which encompasses parts of Lincoln and Creek County.

Beginning in 2007, Danny served as the Democratic Minority Leader in the House of Representatives. He currently serves on the House Economic Development, Tourism & Financial Services Committee, the Energy & Utility Regulation Committee, the House Ethics Committee, and the Insurance Committee. He was also appointed by the Speaker of the House to sit on the newly created Joint Committee on Federal Health Care Law and the Joint Legislative Task Force on the Grand River Dam Authority.

“The decision to step aside at this time did not come lightly,” Morgan added. “But in the end, with my family in mind, it’s the right time to begin the next chapter in my life. I am truly blessed to have my health, my family, and so many great friends that have stood beside me over the years.”

He noted that he has especially enjoyed working with his legislative colleagues and leaders from all over the state to create public policy to better the lives of Oklahomans.

Morgan plans to return full-time to his position as President of the family-owned Morgan Well Service, Inc.

Danny was married to the late Debbie (Hicks) for 25 years and together they have two children, Zachary and Danielle.

Fewer Bills Introduced by Bill Filing Deadline This Year

2012-01-21T19:15:00.000-06:00

OKLAHOMA CITY – At the conclusion of the filing process this Thursday representatives had introduced 962 bills and 26 joint resolutions while senators introduced 972 Bills and 45 joint resolutions.

The deadline for legislators to file bills for the upcoming 2012 session was 4 p.m., January 19.

These numbers do not include carryover bills. Carryover bills are bills that are introduced during the first regular session of the Legislature, the 2011 session in this case, and are still available during the second regular session.

In 2011, the House reported that 1,168 substantive bills and 41 joint resolutions were filed. The Senate introduced 976 substantive bills and 45 joint resolutions by the deadline last year.

The Senate has 753 bills and 41 joint resolutions carried over from the 2011 session while there are more than 500 bills and 60 joint resolutions carried over in the House.

Appropriations bills are not subject to the deadlines pertaining to substantive bills.

The 2012 legislative session officially begins Monday, February 6.

Revenue Collections End Fiscal Year on High Note

2012-01-14T17:40:00.000-06:00

OKLAHOMA CITY – General Revenue Fund collections hit a high note to end 2011, recording double-digit growth in December and for the first 6 months of the current fiscal year, Office of State Finance Director Preston Doerflinger announced Tuesday.

"We had the best two months of the 2012 fiscal year in November and December, putting an exclamation point on our recovery from the Great Recession," Doerflinger said as he released the OSF's monthly General Revenue Fund report.

In December, total collections grew by 19.3 percent over the same month a year ago, while beating the official estimate by 16.6 percent.

That came on the heels of November's report showing growth of 22.6 percent and 18 percent, respectively, for that month over November of the prior year and the estimate.

"As we look toward the second half of the fiscal year, it is unrealistic to expect that such dramatic increases in receipts will continue on a month-to-month basis," said Doerflinger, secretary of finance in Gov. Mary Fallin's cabinet. "But all signs point to our economy continuing to outperform other states in our region and the nation as a whole."

"A big reason for this," he continued, "has been the mini-boom in the oilfields, which has generated economic activity throughout our economy and contributed to our growing manufacturing base.

"We’ve had a vigorous recovery so far and collections to the General Revenue Fund have exceeded the estimate for eight months in a row, while topping prior year collections for 20 consecutive months. So, the future looks bright for Oklahoma, but we still have concerns over global economic uncertainty."

Total collections to the General Revenue Fund through the first half of FY-2012 were $2,698.2 million. This amount was $333.4 million and 14.1 percent above the first six months' collections for FY-2011 and $239.1 million, or 9.7 percent above the total estimate for the same period of FY-2012.

In December, total collections for the General Revenue Fund were $542.4 million, an increase of $87.9 million from a year ago. The amount collected in December was $77.4 million more than projected.

"The news that December 2011 revenue collections beat official estimates is a great way to start the new year," Gov. Fallin said. "Increased revenues, combined with Oklahoma's job-growth rate—which ranks third in the nation—show that our pro-growth policies are paying off.

"Despite the good news, though, we are continuing a steady climb out of a national recession that means we can expect a flat budget for the next fiscal year. As we move forward, we should continue to pursue policies that save taxpayer dollars."

All major categories of revenue collections were up by double digits in Oklahoma in December, except sales taxes, which saw an increase in growth of 5.7 percent over the same month last year, while coming in 0.4 percent below the estimate.

The collections covered actual and estimated sales for the last 15 days of November and the first 15 days of December.

"More Oklahomans had jobs this Christmas than in 2010, but the sales tax figures for the first part of the holiday shopping period indicate our citizens were prudent in their spending, just as we need to be in state government as we move to modernize our agencies and systems for delivering services," Doerflinger said. "We still face a difficult task in building a budget for the upcoming legislative session."

General Revenue Fund collections for the major tax categories in December were:

Income taxes -- The total collected from individual and corporate income taxes in the month of December was $262.5 million for the FY-2012 General Revenue Fund, which was $58.6 million or 28.8 percent more than prior year collections and $53.4 million or 25.5 percent above the estimate.

Individual income tax receipts of $207.8 million were $34.9 million and 20.2 percent above the prior year and $17.4 million or 9.1 percent above the estimate.

Corporate tax collections contributed $54.7 million to the General Revenue Fund for the month, which was $23.7 million or 76.6 percent above December 2010 collections and $36 million or 192.3 percent above the estimate.

The unusually high corporate collections are a result of one-time estimated payments from the oil and gas industry. Without these payments, monthly corporate collections would have been approximately 43.9 percent above the estimate.

Sales tax -- Sales tax collections produced $153.5million for the General Revenue Fund, $8.3 million or 5.7 percent more than the prior year and $564,713 or 0.4 percent below the estimate.

Gross production tax -- Total gross production tax collections from natural gas and oil for the month were $54.7 million. This total was $20.2 million and 58.6 percent above collections for December of the prior year and $24.4 million and 80.6 percent above the estimate.

December tax collections from natural gas accounted for $26.2 million in General Revenue Fund receipts, which was $6.8 million or 35 percent above the prior year and $4.1 million or 13.4 percent below the estimate.

Gross production oil tax collections to the General Revenue Fund for December were $28.5 million. This amount is $13.4 million or 88.9 percent above prior year collections for the month. No collections were expected to be deposited into the General Revenue Fund from this source in the current fiscal year until February.

The first $150 million in oil revenue is earmarked--primarily to three education funds. Collections hit that benchmark earlier than expected, allowing gross production oil tax revenue to flow into the General Revenue Fund.

Motor vehicle taxes -- This tax source produced $19.4 million, which was $5.8 million or 42.5 percent above the prior year and $4.5 million or 29.8 percent above the estimate.

Other Revenue -- Other revenue produced $52.3 million in December. This was $5 million or 8.7 percent below the prior year and $4.3 million or 7.6 percent below the estimate.

Auditor Gary Jones summarizes education department findings

2012-01-14T10:04:00.000-06:00

By Patrick B. McGuigan at CapitolBeatOK.com (Published: 12-Jan-2012)

Oklahoma Auditor & Inspector Gary Jones, in a video interview with CapitolBeatOK, has summarized findings of a special audit investigating questions raised about the travel claims of a former Assistant Superintendent of Public Instruction.

The auditor and his staff concluded that there was evidence of possible falsified claims, and other concerns. Other issues were found that have triggered a broader inquiry, Jones said in an interview this week.

Auditor & Inspector Gary Jones

Jones explained that the investigation was undertaken at the request of Superintendent of Public Instruction Janet Barresi, who now runs the state Department of Education. The special audit covered the period July 1, 2008 through June 30, 2011.

In the interview, he also provided a broad outline of other audits he is pursuing.

Jones said, “We received a request from Superintendent of Public Instruction. There were allegations that an employee was falsifying travel claims. They made the request, we sent our investigative auditors in. They did a very good job of interviewing people and presenting the results to the Department of Education.”

In summary, Jones said, “They discovered there were instances of travel that could not be documented, times where the individual claimed to be attending meetings and there was no evidence of that happening.”

Jones said the audit is a “customary thing that we do.” He reported, “We receive requests from District Attorneys, from boards of county commissioners, from school districts. So, this is one of our divisions. This is a routine thing that we do.”

Jones told CapitolBeatOK his office is pursuing a wide range of investigations: “We have a large number of requests that have been made, whether it’s from school districts and counties. We’re in the process, at different stages in those investigations. We’ll release those reports as they become available.”

Six of the new report’s “objectives” touch upon the work of Misty Kimbrough, a former Assistant Superintendent of Public Instruction. The final report from Jones pointed to what appear to be significant areas of concern that could become the basis for further action, including another audit report in 30 to 60 days.

In the succinct executive summary of the special audit report, the first objective “supports the allegation that the former Assistant State Superintendent filed for and was reimbursed for travel claims that included false entries. Further, we concluded that the allegedly falsified travel claims may have been utilized more for the ‘appearance’ of having been ‘on the job’ and/or disguising absences from the job, rather than the often negligible amounts that were obtained with the travel claims.”

As for the second objective, information developed “supports the allegation that there was little or no time accountability system in place for the former Assistant State Superintendent to record and report ‘time worked’ or time ‘on the job.’ As a result of the failure to enforce its own policies and procedures regarding the accountability for time worked, the ‘leave’ records for the former Assistant State Superintendent were also unreliable.”

In one part of the report, Jones points to past agency management as a source of concern.

The report’s executive summary reads as follows: “[W]e report the lack of consistency in enforcing the Department’s own policies and procedures for time reporting was not confined to the single occurrence of the former Assistant State Superintendent, but that the Department had no uniform system for documenting the time claimed by its employees. We report there were other areas and sections of the Department where time records were not necessarily reliable and/or were nonexistent.”

In another area, the report from the auditor’s office detailed “a variety of findings related to job duties, pay and travel expenses concerning a ‘temporary’ employee, but there were no criminal allegations reported for this situation.”

In four other areas, the audit report touched upon “a relatively small ($2.5 million) federal special education grant program for “residential placement,” an alleged inappropriate change to a monitoring report for a specific school district, an alleged possible violation of the Federal Educational Rights and Privacy Act (FERPA), and a possible misappropriation of state resources and employees. We found these four concerns to be largely unsubstantiated.”

Concerning what was characterized as “a nonspecific concern” about “sole source” contracts, the report concludes, “Our test work in this area did not indicate any findings to report.”

Statutory authority for the agency to respond to agency requests for special audits is found in state law at 74 O.S. 2001, § 227.8. Material in the report is available to journalists and subject to public scrutiny due to provisions of the Oklahoma Open Records Act (51 O.S. § 24A.1 et seq.).

Peter J. Rudy of Oklahoma Watchdog last week distilled the findings in the auditor and inspector’s report as follows:

Kimbrough was reimbursed for travel expenses, including a hotel stay, for a meeting she did not attend in White Oak.

Kimbrough was reimbursed for travel expenses, including a hotel stay, for a meeting in Oklahoma City which is considered her “official duty station area” and therefore not eligible for overnight reimbursement.

Kimbrough may have submitted false travel documents not to get the small sum of money but to make it appear she was at work rather than taking leave time for which she was reimbursed upon her termination.

Kimbrough received nearly $12,700 for her unused leave time, but as much as $3,000 may have been for leave that was taken, but not recorded as leave.

The entire report from the auditor’s office is available online here.

State Board of Education Takes Show on the Road

2012-01-13T16:42:00.000-06:00

Fort Sill to Host Board Meeting Next Week Over Two Days

STATE BOARD OF EDUCATION

FORT SILL ARMY BASE
500 UPTON ROAD, PATRIOT CLUB ARTILLERY ROOM, SECOND FLOOR

LAWTON, OKLAHOMA

Sunday, January 15, 2012

AGENDA

Call to order and roll call – 4:00 p.m.
Introduction of State Department of Education staff - Superintendent Janet Barresi
Discussion and no action: Presentation on role and responsibilities of the State Board of Education – Lisa Endres, General Counsel
Discussion and no action: Presentation on the rulemaking process and procedures – Kim Richey, Assistant General Counsel
Discussion and no action: Overview of the Oklahoma School Code and education law - Lisa Endres, General Counsel and Kim Richey, Assistant General Counsel
Break
Discussion and no action: Legislative update, overview and process – Joel Robison, Chief of
Staff and Jessica Russell, Policy Director
Open discussion regarding any agenda item
Recess for evening

STATE BOARD OF EDUCATION

FORT SILL ARMY BASE
500 UPTON ROAD, PATRIOT CLUB ARTILLERY ROOM, SECOND FLOOR

LAWTON, OKLAHOMA

Monday, January 16, 2012

AGENDA

Reconvene, call to order and roll call – 9:00 a.m.

Discussion and no action: Presentation on Common Core State Standards & Oklahoma C3 Standards – Kerri White, Assistant State Superintendent, Educational Support and Marsha Thompson, Assistant State Superintendent, Instruction

Discussion and no action: Presentation on the Reading Sufficiency/ Third Grade Graduation and Early Childhood Initiatives - Teri Brecheen, Executive Director of Literacy
Discussion and no action: Presentation on A-F Implementation, Accountability and Assessments, and Partnership for Assessment of Readiness of College and Careers (PARCC) - Maridyth McBee, Assistant State Superintendent, Accountability and Assessments
Discussion and no action: Presentation on Teacher and Leader Effectiveness (TLE) - Alicia Currin- Moore, Executive Director, Teacher and Leader Effectiveness
Break
Discussion and no action: Presentation on the State Longitudinal Data System (SLDS) - John
Kraman, Executive Director, Student Information
Discussion and no action: Overview of Accreditation - Bob Neel, Executive Director, Accreditation
Discussion and no action: Presentation on Achieving Classroom Excellence (ACE), ESEA Flexibility Request (Waiver), and REAC3H Network - Kerri White, Assistant State Superintendent, Educational Support
Open discussion regarding any agenda item
Adjournment

Fallin Announces Appointment of Joy Hofmeister to the State Board of Education

2012-01-13T15:10:00.004-06:00

OKLAHOMA CITY – Governor Mary Fallin today announced the appointment of Joy Hofmeister to the Oklahoma State Board of Education. She will serve on an interim basis pending Senate confirmation. Hofmeister is replacing Philip Lakin, Jr., who resigned. She will serve the remainder of Lakin’s term through April of 2015 as a member from Congressional District 1.

Joy Hofmeister appointed to replace State Board of
Education member Phil Lakin (third from left)

“Joy has spent her entire adult life working in the field of education,” Fallin said. “She is a teacher with hands-on classroom experience, an executive with private sector experience, and a researcher with a passion for finding ways to improve our schools and boost student performance. Her experience, dedication and passion for reform will serve her well on the State Board of Education.”

Hofmeister is a former public school teacher who currently serves as the CEO of Kumon of South Tulsa, a local franchise of the international firm that provides math and reading enrichment to children. She serves on the board of directors for the Jenks Public Schools Foundation, is participating in the Jenks Select Committee for Study of School Finance, and has previously worked on the Math Textbook Adoption Committee, also for Jenks Public Schools. Hofmeister has significant experience working with Special Education teams and students on an Individual Education Plan (IEP); and has also participated in the Trends in International Math and Science Study (TIMSS) research testing.

“I’m thrilled to be part of a community and team that is dedicated to improving the quality of our schools and giving Oklahoma students the tools they need to succeed,” Hofmeister said. “Nothing is as important to the future of this state as ensuring our children maximize their potential through a quality education that prepares them to be globally competitive.”

Hofmeister has a bachelor’s degree in Education from Texas Christian University, as well as teaching certificates in English and Elementary Education. She lives in Tulsa with her husband, Gerald Hofmeister. They have four children.

Oklahoma public school enrollment increases

2012-01-11T19:18:00.000-06:00

OKLAHOMA CITY (Jan. 11, 2012) – Annual enrollment numbers provided to the State Department of Education by each public school district and charter school site in Oklahoma, show that pre-Kindergarten through grade 12 enrollment for the current school year is 666,150 – an increase of 6,535 students over the 2009-10 school year and 27,128 more students than five years ago.

“As our enrollment grows, so must our commitment grow to ensure each student in this state graduates college, career and citizen ready,” said State Superintendent of Public Instruction Janet Barresi. “With our new Teacher and Leader Evaluation plan in its pilot year, our Achieving Classroom Excellence standards in effect and other important reforms on the way toward implementation, we are moving toward this goal.”

The 2011-12 data shows that Oklahoma’s student population is 53 percent white, 17 percent American Indian, 13 percent Hispanic, 10 percent black, 5 percent two or more races, and 2 percent Asian, Hawaiian or Pacific Islander.

The state serves 39,772 four-year-olds in prekindergarten programs with 26,390 in full-day Pre-K classes.

This year, about 96 percent of students are in full-day kindergarten. As part of the Achieving Classroom Excellence Act of 2005, all Oklahoma public schools are required beginning in the 2012-13 school year to offer full-day kindergarten programs unless they qualify for an exemption.

“It is so important that we reach children at this early age so we can begin teaching literacy and other skills that will be necessary as they progress through school,” Barresi said. “It also is vitally important that we identify children who may be struggling in certain areas so we can get them the help they need at the earliest possible moment.”

The largest school districts in the state remain Oklahoma City Public Schools, with an enrollment of 43,492 students, and Tulsa Public Schools, with 41,199 students. The top 10 districts ranked by enrollment size shuffled a bit this year, with Norman surpassing Union to take the No. 8 spot, leaving Union and Midwest City-Del City in the No. 9 and No. 10 spots, respectively. Tulsa, Lawton and Mid-Del were down slightly in enrollment numbers this year.

Found Causes: White Fields Boys Home and OKC Compassion

2012-01-07T06:59:00.005-06:00

Found Causes Episode 01 from DALE EPPERSON on Vimeo.

Found Causes is a weekly television series that features people who serve the community by actively getting involved in the lives of people in crisis. Visit the Found Causes website.

Doak Disappointed by Denial of Obamacare Waiver Request

2012-01-05T14:28:00.002-06:00

OKLAHOMA CITY –Oklahoma Insurance Commissioner John D. Doak expressed grave disappointment Wednesday that Oklahoma’s request for a waiver on Medical Loss Ratio requirements from the U.S. Department of Health and Human Services was rejected.

Announcement of the rejection came yesterday from Washington.

“This decision could lead to a massive disruption of our insurance markets in Oklahoma,” Doak said in response.

The Medical Loss Ratio (MLR) in essence is a calculation of what percentage of each policyholder dollar is spent on delivering benefits or improving care, versus how much is spent on administration and profits. The Patient Protection and Affordable Care Act (PPACA) has set an 80 percent minimum MLR for companies doing business in the individual and small-group health insurance markets; an 85 percent MLR for large-group plans.

Oklahoma Insurance Department in September sought a gradual phase-in of the 80 percent ratio in the individual market only, rather than immediate and strict enforcement of those targets by the Department of Health and Human Services (HHS). No changes were requested by Oklahoma for the small-group and large-group markets.

Noting the disproportionate and potentially damaging effect of the high MLR on certain smaller companies and the possible impact in particular on Oklahoma’s rural communities, Doak requested that insurers be required to meet a 65 percent MLR for 2011, 70 percent in 2012 and 75 percent in 2013, with full compliance with the 80-percent standard for individual policies by the time the bulk of PPACA’s provisions are fully in force in 2014.

“We asked for a decision that would first and foremost do no harm to the current markets,” said Mike Rhoads, Deputy Commissioner of Life and Health Insurance at OID. “We wanted to keep coverage available, to keep all carriers large and small in our individual market.”

Meeting MLR requirements should be easier for much larger carriers, which can spread the cost of administration over a vast base of policyholders.

Conversely, Doak believes certain smaller companies might be forced to comply with PPACA’s MLR provisions by reductions in force that destroy Oklahoma jobs, meanwhile limiting consumers’ access to the counsel of licensed agents and decreasing the availability of customer service to policyholders. Some small companies might decide to leave the Oklahoma market altogether, surrendering progressively larger segments of the market to one or two major carriers and reducing consumer choice.

“Competition fosters innovation in the type of insurance products available, competitive pricing that reduces policyholder premiums, and attention to detail in customer service as a means of retaining business,” Doak said. “Simply put, competition is good for consumers and these MLR requirements could very well reduce competition in Oklahoma’s insurance markets.”

Some critics of the MLR requirements suggest that driving smaller companies out of the insurance business is an unstated goal of the law. Eliminating competition from the insurance markets brings those who advocate a single-payer health-care system much closer to that goal. In the meantime, Washington – which due to the Dodd-Frank Wall Street reform bill now operates its own Federal Insurance Office allegedly to augment state regulation – would prefer to regulate a few huge companies rather than many smaller ones.

“Consumers should ask themselves whether that’s worked in their favor with banks,” said Doak, who has taken a public position against the new Federal Insurance Office.

Doak added that MLR isn’t a reliable means of determining an insurance company’s effectiveness to consumers. Some Oklahoma companies that will struggle to meet the MLR requirements are nonetheless price-competitive with other companies that do or will meet the MLR threshold. Small carriers also frequently serve rural markets in which larger carriers have less or no interest in doing business, providing conscientious, personalized customer service to Oklahoma policyholders.

“MLR is an arbitrary and superficial means of judging the worth of an insurance company to its policyholders,” Doak said. “Just because one company is able to attribute a smaller percentage of its operating costs to each policyholder does not necessarily mean its policyholders received a greater value for their dollar.”

The request made of HHS by Oklahoma is similar to waivers sought by numerous other states. States that have received approval include Maine, Georgia, New Hampshire, Iowa, Kentucky and Nevada.

Doak said the volume of waiver requests and the varying decisions rendered by HHS are further indication of how federal health reforms are negatively impacting state markets. Oklahoma’s Insurance Commissioner has been one of the nation’s most vocal in the call to overturn PPACA.

“We look forward to the coming months as the Supreme Court will hear challenges filed against this law, and I look forward the eventual, total repeal of the Act,” Doak said.

Oklahoma Economy Celebrating 22 Consecutive Months of Growth

2012-01-05T11:12:00.000-06:00

OKLAHOMA CITY – Oklahoma’s economy quickened the pace of its recovery during 2011, State Treasurer Ken Miller said yesterday as he released the state’s monthly gross receipts report.

“December was 11.1 percent better than the prior year, the fourth quarter was 10.5 percent ahead of the final three months of 2010, and total year collections surpassed the previous year by 9.6 percent,” Miller said. “We saw healthy growth each month ranging from four to 16 percent with an average at the double-digit mark.”

Miller said December was the fifth time in the past eight months that collections rose by more than 10 percent over the prior year and marked the 22nd consecutive month of growth.

“Twelve-month collections now stand more than $1.3 billion higher than in February of 2010. Since we hit the trough almost two years ago, more than 68 percent of the revenue lost from our peak in December 2008 has been recovered,” he said.

Miller said sales tax collections indicate a happy holiday shopping season in Oklahoma. December collections, reflecting sales between mid-November and mid-December, were $20.42 million or 6.3 percent higher than the last Christmas shopping season.

Looking forward

National and state-specific forecasts point toward continued economic improvement.

Recent Bureau of Labor Statistics data list Oklahoma with year-over-year employment growth of three percent, surpassing all surrounding states. The closest competitor was Texas with growth of 2.2 percent.

A U.S. Chamber of Commerce report shows Oklahoma with the nation’s fourth lowest unemployment rate, adding jobs 3.5 times faster than the national rate in 2011.

During the past 12 months, figures from the Oklahoma Employment Security Commission and Bureau of Labor Statistics show the number of jobs grew by almost 16,500, while the labor force grew by just more than 3,000. During that time, the unemployment rate dropped from 6.9 percent to 6.1 percent.

Nationally, The Conference Board reports consumer confidence grew in December from the month before and now stands at levels not seen since April. Closer to home, the Creighton University Economic Forecasting Group anticipates Oklahoma in 2012 will have the second highest growth in gross state product in the nine-state Mid-America region at 4.6 percent. North Dakota is forecast to grow at 6.8 percent.

December collections

The revenue report for December shows gross collections at $960.81 million, up $95.9 million or 11.1 percent from December 2010.

Gross income tax collections, a combination of personal and corporate income taxes, generated $372.73 million, an increase of $82.08 million or 28.2 percent from the previous December.

Personal income tax collections for the month are $279.83 million, up $37.46 million or 15.5 percent from the prior year. Corporate collections are $92.9 million, an increase of $44.62 million or 92.4 percent.

Sales tax collections, including remittances on behalf of cities and counties, total $344.53 million in December. That is $20.42 million or 6.3 percent above December 2010.

Gross production taxes on oil and natural gas generated $71.41 million in December, a decrease of $5.01 million or 6.6 percent from last December. Compared to November reports, gross production collections are down by $3.87 million or 5.1 percent.

Motor vehicle taxes produced $59.58 million, up by $9.32 million or 18.5 percent from the prior year.

Other collections, consisting of about 60 different sources including taxes on fuel, tobacco, horse race gambling and alcoholic beverages, produced $112.56 million during the month. That is $10.92 million or 8.8 percent less than last December.

Fourth-quarter collections

The fourth quarter of 2011 generated $2.602 billion, an increase of $247.18 million or 10.5 percent from the fourth quarter of 2010.

Gross income tax collections totaled $883.45 million, up $140.83 million or 19 percent from the previous fourth quarter. Personal income tax collections generated $756.19 million, a $83.66 million or 12.4 percent increase. Corporate collections brought in $127.25 million, an increase of $57.17 million or 81.6 percent.

Sales taxes totaled $990.39 million for the quarter, an increase of $68.21 million or 7.4 percent from the same quarter of 2010.

Gross production taxes generated $215.05 million during the fourth quarter, down $7.31 million or 3.3 percent from fourth quarter of 2010.

Motor vehicle collections are $160.88 million for the quarter, up $20.86 million or 14.9 percent from the October-December period of 2010.

Collections from other sources totaled $352.08 million, up $24.6 million or 7.5 percent from 2010’s fourth quarter.

2011 collections

During 2011, gross revenue totals $10.681 billion. That is $938.55 million or 9.6 percent higher than collections in 2010.

Gross income taxes generated $3.709 billion for the year, reflecting an increase of $449.12 million or 13.8 percent from the prior calendar year.

Personal income tax collections total $3.193 billion, up by $280.16 million or 9.6 percent from 2010. Corporate collections are $515.77 million for the period, an increase of $168.95 million or 48.7 percent over the previous year.

Sales taxes for the period generated $3.841 billion, an increase of $262.61 million or 7.3 percent from the prior 12-months.

Oil and gas gross production tax collections brought in $1.037 billion during the 12 months, up by $91.72 million or 9.7 percent from the previous period.

Motor vehicle collections total $663.05 million for the period. This is an increase of $57.26 million or 9.5 percent from the trailing 12 months.

Other sources generated $1.432 billion, up $77.85 million or 5.7 percent from the previous calendar year.

Final Settlement Approved by DHS Commission Tonight

2012-01-04T21:25:00.001-06:00

Reform Efforts Given Deadlines in the Agreement

Oklahoma City—The Commission for Human Services met this evening and approved changes made by the Contingency Review Board (CRB) to a settlement agreement in the DG vs. Yarbrough case, a federal class action civil rights lawsuit involving Oklahoma’s child welfare system. The settlement agreement was originally approved on December 20 by the Commission and Children’s Rights, a child advocacy group representing children in the state’s foster care system in the lawsuit.

The CRB reviewed the settlement and approved it with changes on December 29 which caused both sides to revisit the agreement again. Children’s Rights also signed off on the CRB’s changes to the settlement which now heads to federal district judge Gregory Frizzell for approval.

House Speaker Kris Steele, R-Shawnee, who voted to approve the settlement during a Contingency Review Board meeting last week said the agreement is a golden opportunity to improve the agency under Oklahoma’s terms.

“The last thing anyone wanted was to see Oklahoma public policy set in a federal courtroom,” Steele said. “I’m pleased we’re on track to avoid such a scenario. I’d like to thank Attorney General Pruitt and our DHS commissioners for their leadership in steering this process to a path that is truly in the best interest of Oklahoma, its taxpayers and its vulnerable citizens.”

Commission Chairman Brad Yarbrough said in a statement after the commission meeting that the Commission believes the approved settlement is in the best interests of the Department of Human Services and the children and families it serves.

Yarbrough and Plaintiff Attorney Fred Dorwart signing the
settlement agreement after the Commission meeting

“The agreement provides a realistic framework to make improvements in the delivery of child welfare services and, as a result, better protect vulnerable children,” Yarbrough said.

Under the agreement, compliance will dissolve on December 15, 2016 provided the state complies in “good faith” with the proposed improvements for two consecutive years prior to that date. The proposed improvements must still be developed but involve targets for identified practice areas named in the agreement.

“All Oklahomans must unite their efforts to bolster the old-fashioned idea of kids growing up in good homes, Yarbrough said. “But, when parents and caregivers put children at measurable risk of great harm, the DHS must respond in an excellent fashion.”

Howard Hendrick, Director of the Oklahoma Department of Human Services, said the agreement is unique for a lawsuit of this nature.

“It is the first time a class action civil rights lawsuit involving a state child welfare system has been resolved without a consent decree,” Hendrick said. “Both sides were willing to entertain a new approach to resolving class action civil rights claims involving child welfare systems. The future improvements, the details of which must yet be developed, are outlined in a framework that both sides hope will satisfy our shared desire to meet the needs of vulnerable children and families.

“We have been extremely fortunate to have had choices that other states did not have,” continued Hendrick. “The strength of our defense and the national experts prepared to testify in our defense put us in a position to resolve the class action lawsuit without a consent decree.”

Attorney General Scott Pruitt visits with reporters after
the Commission meeting about the settlement

The settlement agreement identifies areas of practice improvements where OKDHS will focus attention. The details of these areas will be incorporated into a plan that will be developed by the agency over the next 55 days.

The Plan and the Panel

By March 30, 2012, OKDHS will present a plan to a newly created panel. The agreement provides for a panel of three national child welfare experts who will have total access to DHS and agency staff.

Yarbrough said other national consultants will be called upon to help the agency create the plan and to meet the goals contained in the future plan.

Under the agreement, compliance with the agreement is based on the “good faith” standard, not the “substantial compliance” standard normally involved with consent decrees.

“The Commission recognizes the difficult tasks faced daily by our child welfare staff and their commitment to professionally serve children and families,” Yarbrough said. “ But, the Commission also understands that too many Oklahomans have been dissatisfied in their dealings with the DHS. We view this settlement as an opportunity to help our staff help create better outcomes than we have previously achieved.

“The Commission welcomes the opportunity to work with agency leadership, its staff, national experts, child welfare consultants, the Governor and the legislature (both Speaker Steele and the House task force headed by Rep. Jason Nelson and President Pro Tempe Bingman). This settlement gives a place for all of these parties to help craft a real improvement plan to help Oklahoma families.”

Steele commented that the real work can begin now that the agreement has been finalized.

“The Legislature must be involved in this planning process and I’m pleased it will be,” Steele said. “DHS belongs to the public and serves the public, so it is critical for the public’s representatives to have meaningful input. We’re fortunate to have had a special House DHS working group in the field these past few months scrutinizing every aspect of DHS and looking for improvements. It’s proven productive already, as they now have a head start on much of the work that must be done in the coming weeks.

“There is a wealth of DHS knowledge and ideas among other legislators and elected officials, as well, so we’ll be counting on everyone’s participation. Together, we’re all prepared to develop the best possible plan to improve services for the children cared for by this agency.”

Hendrick mentioned several areas where improvements are needed.

“We are all committed to continuous quality improvement. We will continue to make improvements even after compliance with the future plan has been completed,” said Hendrick.

“[W]e need to recruit and expand the number of non-kinship homes for children coming into foster care. We need a broader array of therapeutic homes for children experiencing trauma and dealing with behavioral challenges. We also want to reimburse foster parents at better rates for their dedication to caring for Oklahoma’s abused and neglected children.

“As an agency, we need to support our talented child welfare staff. We know this work is intensive, stressful, and demands people with critical thinking skills. As a state, we should value this work with pay that reflects the level of responsibilities expected of these workers.

“Some of these improvements, particularly those involving recruitment and retention of child welfare workers and foster parents, will require additional state dollars. We will need the support of the Governor, the legislature, and the judicial system to commit the resources needed to ensure that Oklahoma’s child welfare system can meet these demands.”

The state will be liable for the plaintiff’s attorney’s fees and expenses in an amount which will require court approval. Class members may not opt out of the settlement and the agreement settles any individual claims they may have.

Link to settlement agreement

Key Provisions of Children's Rights Lawsuit Settlement Agreement

2012-01-04T21:25:00.000-06:00

(Information provided by DHS)

The Settlement Agreement provides that the DHS will develop a plan that will identify specific strategies to improve the child welfare system in a number of key areas (see below). The plan will also identify specific structural and/or organizational changes necessary to implement the strategies and the anticipated cost of implementation. Key performance areas that will be addressed include:

(1) child abuse and neglect in care,

(2) the number of foster homes available for children in need of therapeutic care,

(3) the number of foster homes available for children not in need of therapeutic care,

(4) visitation of children by case workers,

(5) continuity of visitation by the same case worker,

(6) on an annual basis, the average number of placements experienced by a child two years old or older, excluding the ten percent of children with the least number of changes in placement and the ten percent of children with the highest number of changes in placement,

(7) the actual number of placements for each child two years old or older that is in the ten percent of children two years old or older with the highest number of changes in placements,

(8) on an annual basis, the average number of placements experienced by a child under two years old, excluding the ten percent of children with the least number of placements and the ten percent of children with the highest number of placements,

(9) the actual number of placements for each child under two years old who is in the ten percent of children under two years old with the highest number of placements,

(10) as of March 31 and September 30 of each year, the number of children in shelters delineated by even ages (i.e., younger than 2 years, 2 years old to 4 years old, 4 years old to 6 years old, ... ),

(11) during the same six month time period (April through September and October through March), the average stay in a shelter for each age group identified in subparagraph (10), excluding the ten percent of children with the shortest stay in a shelter and the ten percent of children with the longest stay in a shelter,

(12) the actual length of stay for each child that is in the ten percent of children with the longest stay in a shelter,

(13) permanency (i.e., the child exits the system with a connection to a permanent family),

(14) adoption, including adoption failure rates, and

(15) caseload.

The plan will be created by a team consisting of DHS staff, members of the Commission, representatives of the Governor’s Office and members of the Legislature. The settlement provides that three national experts, termed as “Co-Neutrals”, will be included in the approval and monitoring of the plan (Kathleen Noonan, Kevin Ryan, and Eileen Crummy whose bios are attached). A draft of the plan will be submitted by March 30, 2012 to the Co-Neutrals. They will act as arbiters of any disputes between the parties to and arising out of the Settlement Agreement. The expense of the Co-Neutrals will be paid by the DHS.

The DHS and Co-Neutrals will identify a national data expert who will establish baseline measures and target outcomes for each of the performance areas.

In the event that plan is not acceptable to the Co-Neutrals, the DHS will have additional time to modify the plan and resubmit for approval. If the revised plan remains unacceptable, the Co-Neutrals will have the option of designating a third party to modify the plan or to craft a plan themselves.

If the DHS believes that its plan cannot be implemented without an additional appropriation of funds, it agrees to request such funds from the Legislature. However, the settlement agreement does not require the Legislature to increase funding to the DHS.

Once there is a plan (either the first or second version created by DHS, or the one developed by the Co-Neutrals), the DHS shall proceed to implement the plan and make regular reports to the Co-Neutrals on the Department’s progress toward achieving the target outcomes. Twice annually, the Co-Neutrals will provide commentary regarding whether the DHS is making good faith efforts to achieve progress towards each target outcome.

By October 15, 2014, Co-Neutrals shall issue written findings identifying: those target outcomes that have been met; those for which the Department has achieved sustained, positive trending; and those target outcomes for which the Department has not achieved sustained, positive trending (collectively referred to as the "Target Outcome Findings"). The Co-Neutrals will issue a second Target Outcomes Findings report by October 15, 2015.

On December 15, 2016, the Co-Neutrals shall issue a final report. The final report, in addition to the information contained in the Target Outcome Findings referenced above, shall include a finding that the Department has, or has not, made good faith efforts to achieve substantial and sustained progress toward each target outcome. If the Co-Neutrals find that the Department has made, for a continuous period of at least two years prior to December 15, 2016, good faith efforts to achieve substantial and sustained progress toward each target outcome, then the Department's obligations under this Settlement Agreement shall terminate and the parties shall jointly seek to vacate any Judgment entered by the Court as a result of a finding or decision by the Co-Neutrals. If the Co-Neutrals find that the Department has not made good faith efforts to achieve substantial and sustained progress toward each target outcome, the Department shall continue to be subject to the terms of this Settlement Agreement for successive one year periods, with a continuation of the identified reporting requirements. At the end of each such period, the Co-Neutrals shall issue additional Target Outcome Findings until such time as the Co-Neutrals find that the Department has made, for a continuous period of at least two years prior to the report, good faith efforts to achieve substantial and sustained progress toward each target outcome.

The DHS has agreed that Children’s Rights, which acted as Counsel for Plaintiffs, is entitled to legal fees and expenses. The agreement provides that the District Court will determine the amount. Fred Dorwart, a Tulsa attorney who has represented Children’s Rights, has agreed to waive any claim for fees he has incurred.

U.S. District Court Judge Greg Frizzell must approve the Settlement Agreement in order for it to be binding. This settlement is not considered a Consent Decree.

Supt. Pay and Needs Improvement List Highlighted

2012-01-04T14:38:00.001-06:00

The Oklahoma Watchdog website reports that a majority of Oklahoma public school districts on the Needs Improvement list increased superintendent pay last year.

Today DHS Commission Scheduled to Consider Settlement Changes

2012-01-04T10:32:00.001-06:00

Oklahoma City—The Contingency Review Board (CRB) met over two days last week to discuss a settlement agreement in the DG vs. Yarbrough case, a federal class action civil rights lawsuit involving Oklahoma’s child welfare system.

The DHS Commission is schedule to hold a special commission meeting this evening at 5:30 in the commission room of the Sequoyah Building. It is anticipated that much of the meeting will be held in executive session due to a gag order by the judge that remains in effect.

“While the terms of the settlement continue to remain confidential, I can say that the terms are unique in this kind of litigation," said DHS Director Howard Hendrick. "We are pleased that the Governor, Speaker and President Pro Tempore agreed that the unique provisions of this proposed settlement were found to be beneficial. We look forward to working with them as we move the settlement process forward and begin to implement the terms of the ultimate settlement.

"The future improvements, the details of which must yet be developed, are to be outlined in a framework that both sides hope will satisfy our shared desire to meet the needs of vulnerable children and families.”