FOR IMMEDIATE RELEASE
September 27, 2007
For more information contact:
David Blatt, Public Policy Director
Community Action Project
918.382.3228

OKLAHOMA CITY – If the fiscal policies of reducing revenue continue, state government will lack the resources necessary to properly fund vital programs on which Oklahomans rely. According to members of the Alliance for Oklahoma’s Future, dramatic funding cuts in state services such as education, public safety, and state pension programs are inevitable if further reductions in state revenue occur this coming legislative session.

“Because of recent decisions enacted by the Legislature, Oklahoma’s revenue growth has slowed dramatically and we are facing long term budget shortfalls,” said David Blatt, Alliance chairman. “Costs for the state’s existing programs are increasing faster than revenues and this situation will further put the squeeze on those priorities that matter most to Oklahomans.”

The Alliance was called today to speak to members of the House Revenue and Tax Committee regarding changes to Oklahoma’s tax structure. The Committee chair posed the question, “Should Oklahoma cut taxes and if so, which ones?”

“With a grossly underfunded education system, increasing poverty rates among Oklahoma’s children, crumbling roads and bridges, and a crowded prison system, we believe these are the wrong questions for the committee to be asking,” said Blatt. “First and foremost, we need to guarantee that we are meeting our goals as a state to achieve an adequate tax system that provides every Oklahoman opportunity, prosperity and security.”

The Alliance proposed the following recommendations to the Committee:

• Take a breather from further tax cuts;
• Evaluate the current tax structure’s capacity to adequately fund the state’s goals;
• Develop long-term budget forecasts;
• Modernize Oklahoma’s tax system;
• Maintain a balanced tax structure; and
• Preserve and ensure equity in the state income tax.

Further testimony by Elizabeth Hudgins, Senior Policy Analyst for the Center on Budget and Policy Priorities, a national nonpartisan policy research organization, pointed out that Oklahoma’s taxes are already among the lowest in the nation. “Oklahomans pay among the least in the country in state and local taxes, ranking 43rd nationwide,” said Hudgins. “Policymakers should consider their state’s goals and priorities and ensure a tax system that works for all Oklahomans.”

Labels: Budget, CAP, OK House

Posted at 7:16 AM |   

Another doom and gloom economic forecast from the Community Action Project.


By David Blatt
Director of Public Policy, Community Action Project

Oklahoma enters a new fiscal year amidst signs that state revenue collections may be entering a slowdown. As legislators grapple to address new responsibilities, rising costs and unmet needs, this revenue slowdown sends a signal of budget challenges on the imminent horizon.

I. Revenue Trends

The most recent state fiscal year, FY ‘07, marked the fourth consecutive year of revenue growth in Oklahoma. General Revenue (GR) tax collections, which represent approximately 72% of all state tax revenues, increased by 4.2% in FY ‘07 compared to FY ‘06. Since emerging from the steep downturn of 2002-2004, GR has grown at a robust annual rate of 9.2%. Also for the fourth consecutive year, actual GR collections came in well above certified estimates, allowing for a substantial end-of-year deposit to the state’s Rainy Day Fund, which has now reached $571.6 million. Read more...

Labels: Budget, CAP

Posted at 11:53 AM |   

The Alliance for Oklahoma’s Future today lauded as a “major step forward in promoting fiscal responsibility and sound public policy” the passage of legislation that would, for the first time, provide for a long-term state budget forecast. The Alliance is a broad-based, non-partisan coalition of nearly 40 organizations representing Oklahomans from across the state.

SB 368, which passed on the last day of the recently completed legislative session, includes language instructing the Office of State Finance to develop a multi-year trend analysis of the state’s budget outlook that would take into account the best available information on economic activity, population change and others factors affecting the state budget. The forecast would be developed and published annually by November 1st.

“We especially applaud Senator Jim Wilson for promoting this measure and Senator Owen Laughlin for agreeing to include the budget forecasting language in SB 368”, said David Blatt, Chair of the Alliance for Oklahoma’s Future. SB 368 also sets up a process to have the Oklahoma Tax Commission conduct dynamic estimates of the revenue impact of tax cut bills.

“For too long, legislators have made budget and tax decisions that have long-term impacts in the absence of even basic information on the budget outlook beyond the next twelve months”, said Blatt. “We can hope that having access to realistic projections about long-term trends will raise awareness about approaching budget challenges and encourage prudent policy decisions that help keep revenues and spending in alignment”.

“Long-term budgeting forecasting is long-term fiscal stewardship of the highest order. Future generations of Oklahomans should benefit greatly from this legislation,” stated Kent Olson, Professor of Economics at Oklahoma State University. A recent study by Prof. Olson revealed that, as a result of demographic changes, mounting spending pressures, and an outdated tax system, Oklahoma faces an approaching long-term structural deficit in which projected state expenditures will exceed projected revenues by large and accelerating amounts. This situation will force hard choices between future tax increases, spending cuts and alternative ways to pay for and ration public services.

SB 368 awaits the Governor’s signature to become law.

Labels: Budget, OK Legislature

Posted at 11:25 AM |   

Oklahoma City – One day after the enactment of a bipartisan tax relief package, legislative leaders and the governor on Tuesday announced the outlines of a $7.1 billion state budget agreement that speeds up tax cuts for working Oklahomans, boosts teacher pay and includes important funds for critical state services such as public safety and state prisons.

“This budget agreement is the result of hard work and bipartisan cooperation, and I thank legislative leaders of both parties for finding consensus on important issues. It hasn’t always been an easy process, but lawmakers ultimately came together to do significant things for Oklahoma, such as strengthening higher education, establishing a state bioenergy center and increasing teacher pay. This bipartisan budget addresses a number of other priorities, as well as ensuring tax relief. In all, it marks a win-win for Oklahoma,” stated Governor Brad Henry

“We said very early on that the hallmark of this legislative session would be fiscal restraint and restored accountability from government. This is the first time ever in the history of our state that a Legislature cut government spending when there was the opportunity to spend more,” said Speaker Lance Cargill, R-Harrah. “We delivered a responsible state budget that makes record investments in core services while putting in place reforms that make clear we expect in return quality performance and results. At the same time, we have achieved real tax relief for Oklahoma’s working families – the very people whose productivity has helped fuel our economic growth. Important reforms include taking a first step toward a merit-based pay system for Oklahoma teachers and motivating our OHLAP scholars to earn better grades while in college. And for the first time, we will take a major step toward fixing our state’s prison problem by conducting a top-to-bottom review of the Department of Corrections.”

“This budget agreement focuses on protecting middle class families and provides a fiscally-responsible framework for Oklahoma’s future by opening the door to educational opportunities for the next generation. It includes important funding to keep tuition increases to a minimum at our colleges and universities and establishes a permanent funding source to ensure the long-term stability of the Oklahoma’s Promise Scholarship Program,” said Senate President Pro Tempore Mike Morgan, D-Stillwater.

“This fiscally-responsible agreement builds on the bipartisan budget and tax relief plan passed by the Legislature earlier this session, and represents a common sense compromise that Oklahomans can all be proud of – especially the tax cuts for working families and the long-term fix for the Teacher Retirement System,” stated Senate Co-President Pro Tempore Glenn Coffee, R-Oklahoma City. “The Senate’s power-sharing agreement has resulted in a spirit of cooperation in the Legislature’s upper chamber, and this bipartisanship is evident in today’s agreement. The stage is now set for an orderly and on-time adjournment of the 2007 legislative session.”

Labels: Brad Henry, Budget, OK Legislature, Sen. Glenn Coffee, Sen. Mike Morgan, Spkr. Cargill

Posted at 8:23 PM |   

Community Action Project urges using proven fiscal tools over tax cuts to grow Oklahoma’s economy

Economic research shows that policymakers who want to grow Oklahoma’s economy should invest more in education, health and infrastructure rather than cut taxes, according to an issue brief released today by Community Action Project (CAP).

The issue brief according to CAP, is based on a thorough review of economic research, historical data and comparative studies with other states and nations. The brief considers a broad array of fiscal policy tools available to state policymakers for growing Oklahoma’s economy. It finds that public investment in education, health and infrastructure are the most effective ways to spur economic growth. Such investments stimulate the economy by lowering business costs and raising labor productivity.

“This brief clearly demonstrates that we can encourage stable, long-term economic growth in the state by investing in the priorities needed to support Oklahoma’s families, businesses and communities,” said David Blatt, Director of Public Policy for CAP, a Tulsa-area anti-poverty agency.

“Investing in public services helps those who run businesses that depend on a skilled workforce and functioning infrastructure. By helping to decrease significant business costs and improve the environment for revenue generation, Oklahoma policymakers can encourage business investment and entrepreneurial growth, significantly impacting Oklahoma’s economic growth rate.”

In contrast, the study finds that tax cuts are an extremely inefficient fiscal tool for achieving economic growth. In one study cited by the brief, researchers found that 96% of the revenue given up by a typical tax cut is wasted money, going to firms whose investment decisions were not affected by taxes.

“Research has found that public services, especially those dealing with education and infrastructure, are key determinants to business location and investment decisions,” said Jim Alexander, a policy analyst at CAP and the brief’s author.

“Likewise, policy that improves the health and the opportunity for greater educational attainment of all Oklahomans creates a more productive, better-skilled workforce that attracts businesses and high- skilled workers.”

Labels: Budget, CAP

Posted at 9:25 AM |   

Speaker Lance Cargill issued the following statement today after Governor Henry indicated he would veto five budget bills passed today that match his own executive budget:

“Oklahomans won’t let the governor’s smoke-and-mirrors press release cloud this simple fact: The governor is getting ready to veto his own budget. The absurdity of this speaks for itself.

He doesn’t like our plan. Now he doesn’t like his own plan. And he still refuses to publicly submit a new plan.”

Labels: Brad Henry, Budget, Spkr. Cargill

Posted at 4:04 PM |   

OKLAHOMA CITY (AP) Governor Brad Henry says appropriation bills passed by the Legislature are "dead on arrival" if they're unchanged from appropriations in the general budget bill he vetoed two weeks ago.

Leaders in the state Senate are planning to introduce five appropriation bills they say contain the same amount of money for separate state agencies that was contained the original budget.

The lawmakers would not say which agencies would be included in the bills.

But Henry says he'll veto those bills if they're just "repackaged" from the budget bill and he says legislative leaders should stop wasting time on what he calls an "exercise in futility."

Henry wants leaders in the House and Senate to negotiate with him and House Democrats on what should be included in the budget.

Labels: Brad Henry, Budget, OK Legislature

Posted at 6:04 AM |   

Oklahoma House Speaker Lance Cargill issued the following statement yesterday, after Governor Henry threatened to veto five agency budget bills that match his own executive budget:

"The Governor continues to sit on the sidelines and throw rocks at our ideas without submitting any of his own. Our bipartisan plan has been released for weeks, and there are only six weeks left in session, butthe Governor still refuses to submit an alternative budget based on current projections. The Governor is now threatening to veto his own executive budget. The five budget bills that passed today are identical to the numbers in his executive budget. It makes absolutely no sense for him to veto these bills. This is theater of the absurd. The Governor needs to quit worrying about who gets credit and playing obstructionist games. He needs to put in the effort and show us his detailed planinstead of just criticizing ours."

Labels: Brad Henry, Budget, Spkr. Cargill

Posted at 3:14 AM |   

Labels: Brad Henry, Budget

Posted at 12:00 PM |   

Dear Governor Henry,


Thank you for your letter inviting us to discuss the Fiscal Year 2008 budget. Before such a meeting is scheduled, please provide us with a copy of your comprehensive, detailed alternative to the Legislature's bipartisan budget plan. We look forward to meeting with you once we have received your alternative proposal and compared it to the Legislature's bipartisan budget plan. The bipartisan budget in HB 1234 has been open to the public for two weeks. We presume your alternative plan will be similarly open and detailed.

The budget adopted by the Legislature through HB 1234 is a constitutionally-mandated balanced budget based on revised revenue estimates adopted by the Board of Equalization in February. Inasmuch as your Executive Budget was prepared using revenue estimates that are no longer valid, we would like to see your alternative plan reflecting the revised revenue estimates.

Sincerely,


Mike Morgan
Senate President Pro Tempore


Glenn Coffee
Senate Co-President Pro Tempore


Lance Cargill
Speaker of the House

Labels: Brad Henry, Budget, OK Legislature, Scott Meacham, Sen. Glenn Coffee, Sen. Mike Morgan, Spkr. Cargill

Posted at 2:38 PM |   

By Andrew Spiropoulos

The problem with the conventional wisdom is that it is generally more conventional than wise. The story everyone is telling at the Capitol these days is that the Governor and the Senate Democrats are deeply at odds; the Senators were just delighted with the now aborted budget deal while the Governor was betrayed by them. He is now lashing out by vetoing their deal. Nice story, but what if it's not true? The last two years we often heard from the Governor and his minions as well as the Democrat Senate leadership and staff how angry they were at the other and how they would much rather deal with us, the Republicans. My suspicion-and operating assumption-was that this kind of talk was a pretense and that they were really working together to maneuver us into an unwinnable position.

I obviously don't know for sure whether they were playing it straight then and I know even less about what is going on now. But I do know this-the veto of the budget deal leaves the House and Senate Republicans in a very tough jam. They are going to be forced to negotiate the deal twice and thus satisfy, out of their hide, the hearty spending appetites of both the Governor and the Senate Democrats. Read more...

Labels: Brad Henry, Budget, OCPA, OK Legislature, Scott Meacham

Posted at 8:17 AM |   

Speaker Cargill mentioned at his weekly press conference this afternoon that the governor’s chief spokesman on matters of policy and finance, Scott Meacham, has said that they are in favor of 90 percent of the bipartisan budget that the governor vetoed yesterday. Meacham made his comments yesterday on the News9 Morning Show:


NEWS9 MORNING SHOW REPORTER DOUG WARNER: No one is suggesting this morning that the governor is waking up this morning shoving the budget in a paper shredder or anything, but uh, are there any parts that you guys have looked at that you actually like, and think, hey, this was a good move, this was a good decision?


STATE TREASURER SCOTT MEACHAM: “I think a lot of the budget is – probably 90 percent of it, maybe a little less than that – is okay.”

Insiders are scratching their heads and are asking: Why would the governor veto a budget deal, he's 90% in agreement with?

Labels: Brad Henry, Budget, OK Legislature, Scott Meacham, Spkr. Cargill

Posted at 6:30 PM |   

"Divisiveness destroys success, and too much is at stake for us to surrender to the pitfalls of partisanship. There is no glory in gridlock, but the rewards of working together - of joining forces on behalf of our fellow Oklahomans - are truly without limit."

Gov. Brad Henry - 2007 State of the State Address

It seems Governor Henry's Democratic colleagues in the legislature heeded his words until he bribed them Monday with a $100,000 fundraiser. Henry today used his line-item veto to strike down $6.8 billion in new state spending, saying legislative leaders employed a "flawed, closed-door process to craft a flawed budget product that did not represent the best interests of Oklahoma taxpayers."

The governor is employing curious logic to say a bi-partisan budget agreement doesn't "represent the best interests of the people," especially in light of the current political climate where bi-partisanship is as rare as bull with udders! One would think 149 legislators would have some idea of what is in the best interest of the people. The governor's chutzpah continues:

“I do not use my veto authority lightly...I had no other choice but to strike down the spending bill.”

Rep. Trebor Worthen (R-Oklahoma City), asked House Democrats yesterday to sign pledge cards committing their votes to uphold the agreement.

"House Democrats have formed their own gridlock gang to keep this responsible state budget package from becoming law. They need to quit playing games and throwing temper tantrums and commit to uphold this agreement.

The majority of House Democrats voted for this measure when it originally passed the House last week. Then they stood behind the governor today at his press conference, as if to say that they're now against the agreement. The taxpayers of this state expect them to stand up for responsible government and not play partisan games."

On Tuesday, the governor distributed his own pledge cards to House Democrats in an effort to gauge support for his efforts. Worthen said that by voting for HB 1234 originally, only to later threaten to help the governor veto it later, House Democrats are being dishonest and appear to just want to have the limelight thrust their way.

"Instead of offering constructive criticisms and trying to help find solutions to budgetquestions, House Democrats are standing in the way of a responsible state budget, just because they don't feel like they had enough say in the process.

The worst part of it is, they are preventing state government from meeting the April 1 Fund Education First deadline. When we passed this budget bill last week, we met the deadline, but by vetoing this measure now, the governor and his gridlock gang of House Democrats are holding up funding for teachers and education."

Labels: Brad Henry, Budget, OK Legislature, Rep. Trebor Worthen

Posted at 8:38 AM |   

Governor Henry made a rare visit to the Democrats' caucus meeting Monday. One veteran lawmaker remarked that in their recollection, this was the first time Henry had ever attended a caucus meeting since being elected in '02.

Why now the sudden urge to bond with his Democratic compatriots? Did he simply want to hand out souvenirs and show photos from his recent Mexican vacation?

Sources tell OKPNS that Henry promised at the meeting to raise 100k if they would help sustain his line item veto for funding an independent performance audit of the Department of Corrections.

There is a familiar pattern here. Last week in Washington, House Democratic leaders had to resort to bribing their own members with pork projects in order to pass a war supplemental bill mandating troop withdrawal timetables. Now, here comes Governor Henry bribing his own Democrats' to sustain his veto. OKPNS will continue to investigate.

Labels: Brad Henry, Budget

Posted at 7:11 AM |   

Gov. Brad Henry announced his first line-item veto of budget funding today, saying he will use his veto pen to strike down $1 million in supplemental funds earmarked for the Legislature’s Legislative Services Bureau. The governor said the appropriation duplicates the work of existing state authorities and contains no accountability measures to ensure it will be spent responsibly.

Henry said it is critical for the state to conduct regular performance reviews of state agencies such as DOC, but state law assigns that duty to the State Auditor and Inspector, the Oklahoma Legislature and the Office of State Finance. Paying a private consultant an additional $1 million to do the same work assigned to other state authorities would be duplicative and a waste of taxpayer money, according to the governor.

“We must hold agencies accountable for every dollar they spend so we can get the best bang for taxpayers’ bucks,” said Gov. Henry. “That’s why we fund a state auditor, a state finance office and legislative committees and staffs. That’s why we passed a zero-based budgeting law that charges the Legislature with doing an in-house, top-to-bottom financial review of every state agency on a regular basis.

“If they’ve complied with the zero-based budgeting statute and done their regular oversight duties, legislative leaders should already have the information and data they need to determine an appropriate course of action for corrections and any other agency.”

Gov. Henry noted that after he signed Oklahoma’s zero-based budgeting law in 2003, one of the first agencies audited by the Legislature’s zero-based budgeting committee was the Department of Corrections.

Labels: Brad Henry, Budget, OK Legislature

Posted at 4:46 PM |   

OKLAHOMA CITY (AP) State House Democrats, nearly invisible on Oklahoma's political landscape the past two years, are finding a reason to exist as Gov. Brad Henry gets ready for a budget showdown with legislative leaders over a state budget they wrote without Henry's input.

Democrats ruled the 101-member Oklahoma House for 80 years before they were toppled in elections in 2004 that brought Republicans to power. House Democrats have wallowed in political mediocrity ever since, excluded from budget talks they used to command and failing to find ways to make a difference as the chamber's minority party.

The Democratic governor's differences with the state budget and suggestions that he will veto much of it give House Democrats a chance to make themselves relevant again.

``We are excited that our voice may finally get to be heard,'' said House Democratic leader Danny Morgan of Prague. ``If the caucus works carefully with the governor on those issues that are important to our constituents, we can make a positive impact for Oklahoma.''

Henry has threatened to line-item veto parts of the $6.9 billion state budget that was passed unanimously in the Senate and by a wide margin in the House last week.

State Treasurer Scott Meacham, a personal friend and close political adviser to the governor, told The Associated Press there is a good chance Henry will veto all funding for the 2008 fiscal year that begins July 1, while authorizing supplemental spending for public schools and state prisons for the remainder of the current fiscal year.

Henry has until Wednesday to decide what to do. For his vetoes to be meaningful, they have to survive an override attempt. That's where House Democrats come in. Read more...

Labels: Brad Henry, Budget, OK Legislature, Rep. Danny Morgan, Scott Meacham, Spkr. Cargill

Posted at 7:02 AM |   

Labels: Budget, Rep. Jason Murphey, Sen. Gumm

Posted at 6:43 PM |   

In a press release today, Tulsa based Community Action Project proposed raising taxes in Oklahoma's slowing economy. Click here for the issue brief titled: “Cutting Deep: New Projections of Sluggish Revenue Growth Suggest that Tax Cut Impact May Be Felt More Deeply and Quickly than Anticipated”

Full text of release:

Tulsa, OK: New Oklahoma budget projections show that tax cuts enacted in recent years are having a more immediate and dramatic impact on the state’s fiscal outlook than initially expected, according to a budget brief released today by Community Action Project, a Tulsa-area anti-poverty agency.

“We are now seeing that the tax cuts are running headlong into our ability to invest in the priorities needed to support Oklahoma families, businesses and communities,” said David Blatt, CAP’s Director of Public Policy and the brief’s author. “The trade-off for pushing ahead with further tax cuts may be felt directly by those who attend public schools and colleges, run a business that depends on a skilled workforce and functioning infrastructure, or need help with health care and social services.”

The new budget projections, certified in February by the State Equalization Board, see general revenue collections growing by just 1.5% during the current fiscal year and by a paltry 1.0% next year. This is well below the 25-year average of 5.4% annual growth in general revenue, and would mark the first time revenues have grown by less than 2% in a non-recessionary year.

“This study provides a wake-up call for what happens when the state slashes its tax base during an oil boom,” noted Alexander Holmes, OU Regents Professor of Economics and the former State Finance Director under Governor Henry Bellman. “We’ve been down this same road before, but it appears that we failed to learn the lesson that tax cuts in good times can have painful consequences in bad times”.

The issue brief shows that sluggish revenue collections are a direct result of the tax cuts passed over the past three legislative sessions. Tax cuts are estimated to have a revenue impact of over $560 million for the upcoming budget year. The vast majority of the tax cuts affected state personal income tax collections, which are projected to decline by 9% between state fiscal year 2006 and 2008.

These projected stagnant revenues come at a time when the state is already struggling to deal with billions of dollars in unfunded liabilities in the state teachers’ retirement system, as well as upholding commitments to raise teachers’ salaries, expand access to higher education, repair roads and bridges, and bolster the health care system.

“If revenues come in as projected by the State Board of Equalization in February, the state will be extremely hard-pressed to meet its funding obligations, especially since additional rounds of tax cuts are currently scheduled to take effect over the next three years”, said Blatt. “Given what we are now learning about the bleak budget picture ahead, legislators should take the opportunity to consider calling a time out.”

The brief also points to a serious flaw in the budget process itself, which fails to provide lawmakers with any long-term baseline budget forecast that could give them a framework for their decisions. Reforming the budget process to provide additional and more accurate forecasting could help lawmakers make more fiscally responsible and sustainable decisions.

“This report is an excellent addition to a small but important set of recent analyses warning of future difficulties for state government finance in Oklahoma,” commented Dr. Larkin Warner, OSU Regents Professor Emeritus of Economics. “The Governor and the Legislature owe it to the state's citizens to prepare long term projections of state revenues and demands for state services.”

Labels: Budget, CAP, OK Legislature

Posted at 7:39 AM |   

Dear Governor Henry,

In light of your public frustrations over losing a bill that was part of your agenda, I wanted to take the time to send you a copy of a recent article I wrote. I hope it will be a framework for constructive dialog and a productive, successful session. You see, I don’t define “bipartisanship” as just agreeing to see everything your way and voting for a measure because you think it is the right thing to do. I don’t believe bipartisanship is compromise, as some people would suggest, especially if it means compromising my own principles just to get agreement. I do believe bipartisanship means to collaborate (to work jointly with others in an intellectual endeavor). I feel like you and I began such an effort when you invited me to your office to get my assistance on this measure and two others that had been sent to the Rules Committee. In an effort to work in good faith, I agreed to reassign one of those bills to another committee. Senator Morgan reassigned the other two. Two of the three measures made it out of committee with bipartisan support and are headed to the floor for consideration by the full Senate.

I certainly understand your frustration. When you served as a member of the majority in the Senate, those of us in the minority watched most of Governor Keating’s agenda items die in committee. In fact, every one of us in the minority had to live with our own bills being killed in your committee and others. I learned as a member of the minority that you have to let those things go. It taught me to not take it personally, but rather to work to get the issue done in other ways – often in a Democrat authored bill. As a regular victim of your veto pen, I have had to relearn this lesson many times. This taught me not to worry about getting the credit, but rather to focus on the policy over politics.

I didn’t see Governor Keating complain when you and members of your party killed his agenda items. Instead, he worked hard to find common ground, as he would walk up to the fourth floor to meet with legislators to reach a solution together. As I pledged to you when we met recently in your office, I am committed to just such a process.

Senator Morgan and I have worked hard to keep an atmosphere of civility in these first three weeks as we deal with a most unusual and delicate situation in the Senate. So far it has worked very well. We have encouraged our members to avoid unnecessary partisan rhetoric and to try to make our power-sharing agreement work. The Senate works differently under these circumstances. You have repeatedly and publicly criticized some of the new procedures we have implemented, such as placing bills that can’t get bipartisan agreement in the Rules Committee and the calling of committee caucuses to avoid rash decisions that could lead to conflict if members have questions about the new procedures. I hope you will begin to understand that even though you haven’t heard of these measures being done in the past, they were developed in a bipartisan manner to get the work of the people done. Senator Morgan and I both recognized the difficulty of this task and that it would likely result in fewer bills becoming law. That is why we are trying to focus on the things we can agree on and not the issues that will divide us. I hope you will join us in this process.



Sincerely,



Glenn Coffee, Co-President Pro Tempore

Labels: Brad Henry, Budget, OK Legislature, Sen. Glenn Coffee

Posted at 2:55 PM |   

Gov. Brad Henry’s controversial plan to create a state-funded pre-kindergarten program for three-year-olds is dead for the next two years following a tie vote in the Oklahoma Senate Appropriations Committee.

The bill, SB 518, died on an 8 to 8 vote Wednesday. Under the Senate’s new power-sharing agreement, a bill receiving a tie vote on “final action” in a committee is dead for the next two years.

Senate Co-President Pro Tempore Glenn Coffee said the bill’s defeat does not signal the end of bipartisanship in the evenly divided Senate. It is just an example of a policy difference between the two parties on a specific proposal.

“I am proud of the eight members of the Appropriations Committee who took this brave stand and said our state should not commit to this expansion of government at a time when we are facing a tight budget,” stated Coffee, R-Oklahoma City. “But Senate Republicans continue to look forward to working with Gov. Henry on areas where we can find common ground, like fixing the Teacher Retirement System.”

Coffee said there is also significant division among early childhood education advocates about whether Henry’s plan is an effective one.

Democrats obviously had different views on the defeat of the bill.

Governor Henry said The vote amounted to "pure politics". "Republicans caucused right before this bill, whipped everybody into shape and came back and voted lockstep against the bill.”

Treasurer Scott Meacham said that scientific research on the benefits of enhancing brain development during the early childhood years is unanimous. "Most development occurs before age 3, then slows by age 5, Meacham said. "Making an investment during the formative years can pay big dividends on down the road, when students are learning academic skills," he said.

"I would urge you to put aside your partisan rhetoric,” said Sen. Susan Paddack, D-Ada, the bill's author.

ODP Chair Lisa Pryor wrote in her morning rant" this morning:

"Yesterday all eight GOP members of the Senate Appropriations Committee voted against Oklahoma's families and three-year olds."

We love bi-partisanship.

RELATED:

OKLAHOMA City (AP) A bill to expand the number of Oklahoma children that qualify for Medicaid benefits passes the Senate Rules Committee today.

Labels: Brad Henry, Budget, OK Bluenotes, Sen. Glenn Coffee

Posted at 7:40 AM |   

Republican leaders of the Oklahoma House of Representatives and Senate said the Legislature must proceed very cautiously on the FY 2008 budget following Thursday’s recommendation by the Oklahoma Tax Commission that tax revenue estimates be significantly reduced compared to estimates made last December.

Tax commissioners officially reduced their estimates for tax collections for the 2008 fiscal year by more than $250 million. Commissioners also sent a letter to the Office of State Finance advising that corporate income tax collections should also be reduced by about $100 million compared to the previous estimate, for a total reduction of more than $350 million.

“This news validates our concerns that the governor was being rash with his spending proposals and that his budget was based on very rosy revenue projections,” stated Senate Co-President Pro Tempore Glenn Coffee, R-Oklahoma City. “The Legislature must proceed very cautiously. We should treat the Tax Commission’s warning about reduced tax collections very seriously – especially the news that corporate income tax collections are also likely to be far less than officially projected.”

Speaker of the House Lance Cargill, R-Harrah, said, “This is exactly why we’ve emphasized fiscal responsibility this year and why we have already laid the groundwork for cutting and eliminating needless government bureaucracy. We call on the governor to reconsider his bloated budget and scrap the billion dollars in new spending and debt that he has proposed. We’ve seen a wide fluctuation in revenue estimates so far. When the Democrats were in control several years ago and there were shortfalls, their answer was to raise the income tax. That won’t happen on our watch.”

Related: Governor Pushes More than $1 Billion in New Spending & Debt

Labels: Budget, OK Legislature, Sen. Glenn Coffee, Spkr. Cargill

Posted at 7:10 AM |   

Henry Spending like a Drunken Sailor?

After further examination of the governor's executive budget, House appropriations chairman Rep. Chris Benge said Tuesday that the fine print reveals worrying details that could leave taxpayers on the hook for a billion dollars in new spending and debt.

Benge said the governor is pushing to expand state government using surplus money instead of paying for existing needs.

It's our job to ask tough questions, and this does not seem to be a realistic budget, said Benge (R-Tulsa). I'm troubled by the governor's push for new spending while racking up unnecessary long-term debt as a fix for spending commitments."

Benge said that in December, the governor publicly cautioned lawmakers to be careful about overextending the state with new spending and new programs.

"We would respectfully ask the governor to follow his own advice, Benge said. However, it appears the governor is attempting to point us in a direction that will lead to financial hardship." After looking through the governor's executive budget, Benge said he found that while the governor proposes more than half a billion dollars in new spending and $663 million in bonds, he offers no additional tax relief for the state's citizens.

Notably, Benge said the governor appears to be trying to make up for the lottery's $40 million shortfall by proposing long-term bond issues. For example, the governor's proposed $18.8 million in bonds for common education ad valorem reimbursement creates 20 to 30 years of debt for one year of school operational costs.

Benge has questioned some state revenue growth estimates for the 2008 fiscal year. For example, gross production collections are currently $74 million below estimates for the 2007 fiscal year, yet increases have been projected for FY 2008. There has also been a projected increase of 134 percent for corporate income taxes for FY 2008, which Benge said goes against a number of established trends.

The governor also proposes a 34.1 percent increase in funding for the lieutenant governor, though he told journalists this weekend he felt the office was a waste of taxpayer dollars.

Labels: Brad Henry, Budget, Rep. Chris Benge

Posted at 7:30 AM |