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Group of 30 state leaders oppose "tax trigger mechanisms"

Thu, 17 May 2012 01:13:00 GMT

Thirty Oklahoma business executives and community leaders/activists recently submitted to state officials a joint letter opposing adoption of “tax trigger mechanisms” to lower income tax rates as the state economy grows, CapitolBeatOK has learned.

The open letter to Governor Mary Fallin, Speaker of the House Kris Steele of Shawnee and Senate President Pro Temp Brian Bingman was dated May 8. The letter was received in the governor’s office May 9, according to a time stamp on the document.

A copy of the letter was provided to CapitolBeatOK in response to an information request submitted to Fallin’s communications director.

The letter bore the names of some of Oklahoma’s best-known citizens, including conservative-leaning businessmen like Tom Ward (Sandridge Energy, Oklahoma City) and Larry Mocha (a Tulsa manufacturer), and philanthropists George Kaiser and Stacy Schusterman, both of Tulsa.

The letter stated, “We are of diverse opinions as to whether cutting Oklahoma’s top income tax rate is the right policy at this time. However, we are all in strong agreement that this Legislature should not bind the hands of future Legislatures by enacting a tax trigger.”

Tax trigger mechanisms have been a feature of recent steps reducing the income tax levy in Oklahoma, in bills signed by Governors Brad Henry, a Democrat, and Frank Keating, a Republican.

The writers asserted enactment of tax triggers would hinder the state’s ability to respond to “unforeseen circumstances, such as natural disasters or an abrupt economic downturn.” The authors cited University of Oklahoma President David Boren saying, “We have no crystal ball. That is why we should examine tax and budget decisions on an annual basis. That is the conservative approach.”

The full text of the letter, and the list of names on it, follows:

May 8, 2012

An Open Letter to Governor Mary Fallin, Speaker of the House Kris Steele and Senate President Pro Tempore Brian Bingman:

As business executives and community leaders concerned with Oklahoma’s fiscal stability, we urge you to reject proposals to adopt tax trigger mechanisms that would automatically lower Oklahoma’s income tax in future years based on future growth in state revenue.

We are of diverse opinions as to whether cutting Oklahoma’s top income tax rate is the right policy at this time. However, we are all in strong agreement that this Legislature should not bind the hands of future Legislatures by enacting a tax trigger.

It is the responsibility of each Legislature to make decisions based on the state’s needs at the time. Once tax cuts are written into law, it will be almost impossible, constitutionally or politically, to change course, whatever the situation.

Enacting future tax cuts now would especially hinder our ability to address future unforeseen circumstances, such as natural disasters or an abrupt economic downturn. As The Oklahoman stated in a recent editorial, “Income tax triggers are a one-way ticket to lower taxes no matter what happens to the economy.” University of Oklahoma President David Boren notes that, “We have no crystal ball. That is why we should examine tax and budget decisions on an annual basis. That is the conservative approach.”

Deciding tomorrow’s tax cuts today would tie the hands of future legislators, make them less accountable to their constituents and limit their ability to make the best decisions based on the circumstances that they face. We sincerely hope you will reject the concept of triggers that would mandate future tax changes.

Sincerely,

Bob Ross Tom Ward Kirk Humphreys

Mike Neal Francis Rooney John W. Gibson

Bill Cameron Ken Lackey Chet Cadieux

Henry Zarrow Don Millican George Kaiser

Ken Fergeson Stacy Schusterman Melvin Moran

Stan Lybarger Meredith Siegfried Becky J. Frank

Fredrick Drummond Jody Parker Alan Armstrong

Ford Drummond David Adams Guy L. Berry

Larry Mocha Ken Levit Robert C. Poe

Vince LoVoi Renzi Stone Jeff Dunn

Commentary: Roth’s confirmation to Election Board stalls in Oklahoma state Senate

Thu, 17 May 2012 01:38:00 GMT

Senator Sean Burrage, the Claremore Democrat who serves as Senate Minority Leader, has blasted a decision by the Senate Rules Committee to refuse consideration of Governor Mary Fallin’s nomination of former Corporation Commissioner Jim Roth to serve on the Election Board.

Roth deserved a Senate vote, and it’s too bad he did not get it.

In a statement sent to CapitolBeatOK, Burrage said, “Today the people of Oklahoma have been done a tremendous disservice. A dedicated, intelligent and proven public servant was denied the courtesy of an up or down vote on his nomination by our Governor to serve on the State Election Board. The reason given was that he was too partisan. It seems unbelievable that anyone would have the nerve to say that when at the very same meeting a current Vice Chairman of the First District of the Republican Party was given approval.

“Our statutes allow for members of the Election Board to be registered and even active in a political party. I find it hard to believe his political registration is the issue here. The fact is the Governor was able to look at the man’s experience and qualifications and make her decision based on that. It is a shame and Oklahoma’s loss that the Senate Rules Committee would not do the same.”

The state’s largest newspaper, The Oklahoman, in a May 16 house editorial, supported an up-or-down vote on Roth’s nomination.

Rules Committee Chairman Rob Johnson, a Kingfisher Republican, says members are concerned about Roth’s nomination not because he is gay, but because they are not sure it is appropriate to put on the board a former statewide office holder who would “be in control in helping determine what candidates are and are not on the ballot, including his former opponents.”

Roth, a Democrat, twice was elected an Oklahoma County Commissioner.

He was eventually appointed to the Corporation Commission, the constitutional state body that regulates utilities and other businesses, by former Governor Brad Henry. Roth lost a bid for statewide reelection in 2008, losing a competitive race to Republican Dana Murphy.

When he served on the county commission, Roth often clashed with another member of the panel, Brent Rinehart.

In a 2009 interview, Roth said he appreciated the approach of Brian Maughan, the conservative Republican who defeated Rinehart in 2008. Maughan made a point of inviting all living present and former country officials to attend his swearing-in.

In that interview, Roth reflected positively on his time in public office. With a range of opportunities to move out of state, Roth chose to stay in Oklahoma, where he built a “green home,” utilizing what he characterized as environmentally friendly construction plans, including passive solar collection.

During his career, Roth has established a record advocating such “green” energy approaches without, however, opposing Oklahoma’s heritage oil industry.

In that unsuccessful 2008 statewide reelection campaign, Roth lost statewide, but garnered 68 percent support in his home area, the historic Crown Heights neighborhood of Oklahoma City.

It was in the Crown Heights context that this writer got to know Roth as more than a politician. My wife and I typically saw Roth at neighborhood gatherings, or when walking around Crown Heights in the evenings.

A decade ago, when my son Stefan went to fight for our country in the war on terror, Roth would frequently inquire as to his welfare. After his time in combat, Stefan nearly died in a terrible motorcycle accident. Roth and other neighbors provided tremendous support to our family during our son’s recovery.

On more than one occasion, in the wake of destructive storms that hit our part of town, Roth and I and a few of the other men in Crown Heights worked together, clearing streets of broken branches, pushing cars that were having trouble getting traction during icy conditions, and doing other things neighbors do to help each other when bad weather strikes in Oklahoma.

Mary Fallin nominated Roth, and in most cases chief executives deserve to have their nominees confirmed. If confirmed, Roth would have served dutifully in a post that, after all, has to be filled by a Democrat.

While not sharing Jim Roth’s philosophy on some things, I learned long ago to respect him and appreciate his integrity. If I were a member of the Senate, I would support his confirmation.

General Revenue report indicates “banner year” for Oklahoma’s economy

Tue, 15 May 2012 19:10:00 GMT

Revenue Fund collections in April showed robust growth again, confirming the Oklahoma economy is marching toward a banner year with two months remaining in FY-2012.

“We’re on a roll and, barring an international calamitous event, there’s no reason to expect anything will deter our economic progress through the next fiscal year and beyond,” Secretary of Finance Preston Doerflinger said Tuesday (May 15). “Actual receipts for April were almost 12 percent higher than in April 2011, but the diversion of almost $34 million in oil tax revenue by the Legislature reduced the amount going into the GRF.”

Earlier this year, the governor and lawmakers agreed to a supplemental appropriation redirecting $92.6 million in surplus oil funds to meet special needs such as restoring $5,000 bonuses for Nationally Certified teachers and reimbursing local governments for disaster assistance. The bill also funded common education insurance benefits and a State Trooper Academy.

“I’m happy to announce that the oil surplus will be sufficient to fund those needs with money to spare,” Doerflinger said. “Already, $67.7 million in oil revenues have been redirected. We expect the remaining $24.9 million will be paid out of May collections.”

In comments sent to CapitolBeatOK, Governor Mary Fallin said, “With collections through April of this year now $350 million higher than originally expected, it’s clear that Oklahoma’s economy is quickly rebounding from the national recession. This puts lawmakers in a great position -- not only can they avoid the kind of widespread budget cuts we’ve seen in recent years, they can do so while pursuing a significant reduction in the state income tax.”

“Oklahoma families deserve to keep more of their hard earned money, and reducing taxes will allow them to do so while helping to attract more jobs and investment to the state,” she continued. “As Oklahoma continues to get good news about our revenue forecast, I would encourage our lawmakers to put that money where it belongs – back in the pockets of our hardworking citizens.”

In releasing the official monthly General Revenue Fund report, the finance official said he was especially pleased to see continued strong sales tax collections in April. “Sales taxes were up almost 8 percent for the month and beat the official estimate by the same percentage. This has been one of our strongest areas of growth all year.”

Doerflinger added: “Oklahoma has had an exciting and impressive rebound from the after-shock of the national recession. Unemployment in our state is now almost 3 percent below the nation’s jobless rate, our oilfields are alive with activity, manufacturing jobs are up, and consumer confidence remains high."

“Illustrating the depth of the recovery, as it pertains to state revenue, is the fact that if you count the diverted oil taxes, we have had double-digit growth for 7 of the first 10 months of the fiscal year and have topped the estimate by double digits on six occasions.”

He said he believes the pro-growth policies of Governor Fallin are contributing to the state’s economic success.

“I think efforts to cut taxes and make government run more efficiently are fostering a new sense of optimism among citizens and businesses alike as they look forward to prosperity for Oklahoma in the years ahead,” Doerflinger said.

Natural gas prices have been a drag on General Revenue Fund collections through most of the current fiscal year, although they have shown recent improvement and actually were up this April over the same month in 2011.

“Predicting prices of commodities is always difficult –there are just too many variables,” Doerflinger said. “So I would caution against snap judgments on what energy prices will be several months from now. I’ve read at least one expert concede that anything he forecast would probably turn out wrong.

“I’ve heard some concern over last week’s decline in oil prices. But the most recent estimate from the Energy Information Administration is that oil will average well over $100 per barrel in 2013, much more than our official estimate. Anything in the area of $100 would be a bonus for our economy, but there are no guarantees.”

Total collections to the General Revenue Fund through April were $4.6 billion. This amount was $434.6 million and 10.6 percent above collections for the first ten months of FY-2011 and $353.6 million, or 8.4 percent above the total estimate for the same period of FY-2012.

If the $33.7 million in redirected oil taxes had been counted, year-to-date collections would be 11.4 percent above the prior year and 9.2 percent higher than the estimate. Totals for the month would be $67.9 million or 11.8 percent above last year and $46.6 million or 7.8 percent above the estimate.

In April, total collections for the General Revenue Fund, minus the diverted oil revenue, were $611 million, an increase of $34.2 million and 5.9 percent from a year ago. The amount collected for the month was $12.9 million and 2.2 percent more than projected.

Major tax categories in April (not including oil revenue) contributed the following amounts to the General Revenue Fund:

Income taxes – The total collected from individual and corporate income taxes in the month of April was $357.1 million for the FY-2012 General Revenue Fund, which was $43.5 million or 13.9 percent more than prior year collections and $43 million or 13.7 percent above the estimate.

Individual income tax receipts of $303 million were $35.5 million and 13.3 percent above the prior year and $14.8 million or 5.2% above the estimate.

Corporate tax collections contributed $54.1 million to the General Revenue Fund for the month, which was $8 million or 17.3 percent above April 2011 collections and $28.1 million or 108.5 percent above the estimate.

Sales tax -- Sales tax collections in April produced $158.7 million for General Revenue Fund, which was $11.6 million or 7.9 percent more than the prior year and $11.6 million or 7.9 percent above the estimate. Total collections for this source over the first ten months have exceeded the prior year by 9.6 percent and the estimate by 4.5 percent.

Gross production tax – Because all oil collections were diverted this month, the only gross production tax collections to the General Revenue Fund in April were from natural gas. The total collected from that source was $14.9 million. This total was $16 million and 51.8 percent below combined oil and gas collections for the same month of the prior year and $36.5 million or 71 percent below the estimate.

Even with this month’s oil revenue being redirected, the total gross production collections for the first ten months of fiscal year 2012 have exceeded the prior year by $26.2 million or 7.3 percent and have outpaced the estimate by $1.5 million or 0.4 percent.

April tax collections from natural gas were up $10 million and 205.1 percent from gas collections a year ago and missed the estimate by only $269,912 or 1.8 percent.

Motor vehicle taxes -- This tax source produced $19.4 million from April collections, which was $2.9 million or 17.3 percent above the prior year and $0.5 million or 2.4 percent below the estimate. Total motor vehicle tax collections for the first ten months of the fiscal year have exceeded the prior year by 14.6 percent and the estimate by 1.9 percent.

Other Revenue -- Other revenue produced $61 million in April. This was $7.7 million or 11.2 percent below the prior year and $4.7 million or 7.2 percent below the estimate.

Oklahoma core services far from fine

Tue, 15 May 2012 22:21:00 GMT

To the Editor:

In a partisan political age, a fundamental, ideological disagreement often dictates the terms of our debates. That disagreement concerns the proper size and scope of government; what government should do and what it should not.

In Oklahoma in recent years, the debate has been mostly dominated by those who feel that the size and scope of the government, at both the state and federal levels, is too large, bloated by corruption and bureaucracy. On the contrary, Oklahoma agencies face further reductions as income tax cuts loom large on the horizon. The Republican agenda, despite the various inadequacies of state government, is to further cripple it. This agenda is wrong for Oklahomans.

Whether the discussion revolves around education, roads and bridges, the health of our state, or how we take care of our senior citizens, Oklahoma’s government lingers on the brink of a coma induced by massive budget cuts. Many politicians love to play a disingenuous rhetorical game by proclaiming that Oklahoma’s government is too large and incompetent one moment, then stating that the government is functioning “just fine” on the other, and therefore can tolerate further cuts.

One needs look no further than the state of Oklahoma’s public school system to see the evidence of the government’s starvation into inadequacy. Oklahoma’s schools ranked “far below average” in the 2011 Science and Engineering Readiness Index, which assesses schools’ aptitude in preparing students for careers that involve science and mathematics. According to the National Education Association, Oklahoma ranks 49th in the amount of dollars it spends per student. Class sizes in Oklahoma schools are swelling while education support staff is downsized and less dollars go to elective courses, textbooks and technology, and basic operational needs of the school.

Many of these failures, but not all, can be attributed to the policies of our egregiously unqualified Superintendent of Public Instruction, Janet Barresi. Last year, the Republican majority in the Legislature, followed by the Republican Governor, gave Barresi unprecedented powers over the State Board of Education. She used those powers to cut funding for reading sufficiency programs, professional development programs, and popular and effective programs such as Literacy First and the Street School in Tulsa that offered alternative classes and therapeutic counseling to students. In addition, she cut the stipend for National Board Certified Teachers. Thankfully, through the efforts of many concerned legislators and outraged citizens, the stipend was provided for through a supplemental appropriation. Right now I am fighting to ensure that NBCT teachers keep their annual stipend in the years to come. However, we cannot expect the Republicans’ and Barresi’s battle against public education and teacher compensation to end there.

The school system is not the only program in which the effect of funding cuts is becoming more pronounced. Oklahoma ranks near the bottom in a number of important health indicators, such as number of deaths due to heart disease, yet this statistic remains ignored as Republican leadership has voiced no intentions to backfill the 20% cut in funding the Department of Health has sustained over the last three years.

The Department of Corrections is constantly running at maximum capacity, and currently the ratio of inmates to officers is 160 to 1. Oklahoma continues to be counted as one of the worst states in the number of structurally deficient bridges.

The “Child Maltreatment 2009 Report” states that Oklahoma has “the third worst rate in the nation…five times the acceptable national standard” for abused or neglected children under state care, yet we systematically underfund the needs of the Department of Human Services. As a result, DHS lacks the dollars necessary to employ more case workers in order to lessen unsustainable caseloads. However, as part of a settlement of a recent lawsuit, DHS was ordered to reduce its caseloads. The lawsuit alleged foster children were being abused and mistreated while in state's custody, and is now requiring the hiring of more caseworkers to meet reasonable professional standards in order to reduce the number of deaths due to child abuse or neglect. Caseloads reported by DHS range from between 20 children and more than 30 children per worker, when accrediting body standards call for no more than 18 children per caseworker, or eight per caseworker in the case of special needs children. The settlement also created a three-person panel to oversee needed reforms. However, if we continue to starve DHS of resources, we will without a doubt face another lawsuit and worse, allow abuse or neglect to continue unchecked due to lack of appropriate and timely intervention.

With these issues in mind, I am reminded of Grover Norquist’s quip that he’s not in favor of abolishing the government, he merely wants to “shrink it down to the size where we can drown it in the bathtub." Yet shrinking government even more than it’s already been trimmed is tantamount to turning our backs on our commitment to protect individuals. In Norquist’s world, and those who follow his ideology, we eliminate or severely constrain the Department of Education, the Department of Health, of Human Services, of public safety.

Meanwhile, the state continues to give subsidies to big oil and gas companies, which effectively pay negative tax rates. You can see the results in their huge Tower of Babel in downtown Oklahoma City, but what price did rural school districts pay for that luxury? Are jobs for these companies important than jobs for rural schoolteachers?

I urge lawmakers and citizens alike to set the bar higher, to aspire to make Oklahoma a better place for its people, rather than a state that inhibits its government to the disservice of all.

State Representative Mike Brown, Tahlequah

Thinking Small -- One man’s “top 10 ways to cut Oklahoma state government spending”

Tue, 15 May 2012 03:49:00 GMT

In March, leaders of a group of 31 conservative Republican legislators – each of them an advocate of lower and eventually phased out income taxes – laid out their assumptions about tax cuts and government spending.

The group operated (and presumably still operates) from certain assumptions about economic behavior, government revenue and the possibility, as one leader put it that day, of taking Oklahoma from “good to great” in terms of appeal to taxpayers here – and elsewhere in America.

A sketch of their assumptions follows:

First, based on a dynamic analysis of the anticipated impact of the lower taxes, the group assumed (and still does) that total personal income in the state would grow by 20 percent as the decade-long phase out takes place.

Second, government tax revenue would, they project, increase to $8.2 billion in appropriated dollars, compared to the current $6.6 billion, as the state economy grew due to resources remaining in private hands.

With those assumptions and projections in mind, the group gave reporters a listing of up to $853 million in unnecessary or wasteful spending of taxpayer dollars, saying that was enough spending reduction to cover the anticipated $525 million needed to jumpstart the process.

Much of what the group laid out was drawn from the work of Jonathan Small, a budget and fiscal analyst for the Oklahoma Council of Public Affairs, the state’s leading “think tank” advocating markets, economic liberty and limited government.

What a difference a few weeks can make. Hopes that seemed realistic for at least significant income tax reductions have been assailed, badgered and dismissed – even sneered at in some settings. By about two weeks ago, the conventional wisdom (not always, but often, prophetic) under the dome at the Capitol in Oklahoma City assumed that major tax reduction was dead in Oklahoma, at least for 2012.

Then, Dr. Arthur Laffer’s return visit to the Sooner State last week seemed to provoke some new hopes for major tax reductions.

Late in the week, came news that Kansas was flirting (in fact, had already passed through both houses) the largest tax cuts in that state’s history.

Perhaps reports of the demise of income tax reduction for Oklahoma are premature. These last two weeks of the legislative session will tell.

With hopes for comprehensive reform of business incentives, tax credits and carve outs apparently waning, it is not clear that substantial attention has been devoted to the possible spending reductions Small, and his admirers in the House GOP caucus, laid out.

To narrow the focus and the numbers somewhat, CapitolBeatOK asked the Certified Public Accountant, who has worked both for Republicans and Democrats in his time in the public policy arena, to list his top 10 ways to reduce spending – this year, if legislators so chose.

Distilled below, the results of an exchange of several emails and interviews with Small.

Jonathan Small’s top 10 ways to reduce state spending, with some reference to earlier work and with the potential spending impact listed, follows – leavened with CapitolBeatOK’s narrative.

1. State Employee Health Insurance Reform – Over $75 million annually.

This one might seem like a bipartisan no-brainer, but it has not yet come to pass.

Small argues policymakers should “implement the reforms of SB 2052, … passed by the legislature in 2010 but vetoed by former Gov. Brad Henry. The reforms include consolidation of duplicative administrative functions of the state Employee Benefits Council (EBC) and the Oklahoma State and Education Employees Group Insurance Board (OSEEGIB), which is estimated to result in an administrative savings of $2 million to $3 million annually.”

The proposal is deemed “bipartisan” because it was advocated, rather passionately, by Small’s former boss, former state Insurance Commissioner Kim Holland. As Small explained, “Non-appropriated revenue of OSEEGIB and EBC is derived from state appropriations for health-benefit payments for employees, so any spending reductions at EBC and OSEEGIB equals savings for state-appropriated agencies.”

The reform’s implementation would allow a “winner-take-all” bidding process for benefits (i.e. the way private sector firms operate). It includes other possible reforms of incentives, a possible shift away from self-insurance for the state, and other reforms.

2. Telecommunications Efficiency Audits – $3 million annually.

In Small’s view, state policymakers need to “require audits of state telecommunications and data communications utilization. Independent IT efficiency firms, for a flat fee or on a contingency basis, can be employed as a negotiator and reviewer of charges from telecommunications and data communications companies used by state agencies.”

Private firms using such services have reduced telecom and datacom costs 25 to 30 percent, Small reports.

3. Performance Evaluation Reform & Hiring Reform – Over $5 million annually after first year, $41 million annually after 3rd year.

Small presses for semi-annual performance evaluations of government employees, mirroring those often used it he private sector to measure computer use, time management, output in hours worked, incentive pay and steps to reduce the number of full-time equivalent employees.

Small reports that “some agencies have already started these evaluations, and have discovered startling information about the low workload and output of some of their employees. In some agencies, more than six percent of the FTEs were grossly underperforming their required duties and contributed little to the completion of agency tasks. These evaluations have allowed agencies to reward and reassign duties to performing employees, separate non-performing employees, and save hundreds of thousands of dollars in personnel expenses.”

Oklahoma has a high number of state employees per capita, OCPA asserts. In essence, Small’s proposal is to have fewer employees, perhaps pay the retained (better) employees more, and still save money.

To avoid he problem of government expansion as a result of economic recovery, Small believes “all state-appropriated agencies should be required to notify the Office of State Finance, Division of Personnel Management, and the Governor’s office before any new hires are made. Once the agency has provided a detailed notification and justification for filling the position, the Governor’s office or the Division of Personnel Management will have 30 days to approve or disapprove the new hire.”

4. Eliminate legislative forced funding for the NCSL – Over $141,000 annually, total of $1 million over the last 8 years

Small confesses his belief that the National Conference of State Legislatures (NCSL) is a “big government lobbying organization.” He points to the group’s policy statements, which conflict with the policy views of the Sooner State’s congressional delegation.

In a summary Small prepared, NCSL supports “corporate welfare, welfare through the tax code and stands in way of congressional efforts to reduce federal spending.”

In Small’s summary, other NCSL policy preferences include:

• Ensuring “Federally funded family life and health education and prevention (HIV & AIDS) programs must include accurate information emphasizing responsible sex practices. These programs should include but not be limited to the promotion of safer sex …”

• Support for increased funding for the National Health Services Corp.

• Strong support for “the development of an interoperable system of electronic health information for the United States.”

• Support for federal funding of early childhood education, including failed programs such as Head Start.

• Support for the “Common Core Initiative.”

• A neutral position on climate change legislation and the statement that “Climate change is a far reaching topic that affects multiple issues of everyday life.”

• Concerning a balanced federal budget, the NCSL states “NCSL is concerned that excessive spending increases or tax cuts, given the need for continued fiscal discipline, may threaten funding for existing and future intergovernmental programs.”

Small’s argument, passionately presented, is that NCSL lobbies for increased federal spending, neutral or positive views of the 2010 federal health care law and other policies most Oklahomans do not accept. He advocates an end to direct subsidies to NCSL by Oklahoma taxpayers, and a kind of “scholarship” to allow legislators who wish to travel to use the money “to seek innovative policy” as they deem appropriate.

5. Eliminate state funding for attempts at space travel – Over $394,000 annually.

Small understates his point: “Space travel is not a core function of Oklahoma state government.”

When the Oklahoma Space Industry Development Authority was created in 1999, he intention was for it to self-fund. But lawmakers have spent $7.8 million on the authority since then – up through a $394,589 expenditure in Fiscal Year 2012.

Small argues the authority – like the Native American Cultural Education Authority – “is ripe for non-appropriation.”

6. Eliminate state funding for rodeos, roping contests, local fair, local aquarium, local festivals – $330,000 annually, perhaps more.

Small found several hundred thousand dollars of annual state expenditures he deems “good old-fashioned pork.” There were (in his words):

• A special, politically targeted earmark for the Kiamichi Technology Center - $100,000

• A special, politically targeted earmark for the Tulsa State Fair - $65,000

• A special, politically targeted earmark for the National Finals Steer Roping Championship - $25,000

• A special, politically targeted earmarks for the IPRA National Finals Rodeo - $50,000

• A special, politically targeted earmark for the Red Earth Festival - $25,000

• A special, politically targeted earmark for the Summer Arts Institute - $25,000

• A special, politically targeted earmark for the Jenks Aquarium Exhibits - $40,000

7. Eliminate taxpayer funds for operation of non-core agencies such as the horse racing commission, the insurance department, the consumer credit department, NACEA, OETA, etc. – Over $20 million annually.

Small believes the Native American Cultural Education Authority, which wants to build the American Indian Cultural Center and Museum on the Oklahoma River is a prime example of a project begun with state money, with the promise that after start-up, no further taxpayer subsidy would be needed.

As OCPA notes, “More than 17 years and $67 million dollars later, the state continues to provide funding for both bond-indebtedness and operational expenses of an agency that still has not achieved its mission.”

Several legislators have opposed more money for the museum, while others have demanded an audited accounting of past expenditures before consideration of new spending. Small asserts the museum “should no longer receive taxpayer funds for operations. The potential savings from implementing this reform would be more than $1.3 million annually.”

Small builds on the work former Auditor & Inspector Tom Daxon, who in 2010 detailed a range of spending for entities that the state no longer needs (if it ever did, in their shared view) to finance.

Small and others at OCPA have long advocated an end to taxpayer support for the Oklahoma Educational Television Authority (OETA). He notes that 17 other states have already stopped providing state government funding for public television.

In short form, his view is this: " When you take a dollar from someone you make them less free, so tax dollars should be reserved for the core functions of government. They should not be squandered on non-core functions which the free market provides quite capably (such as television programming, golf courses, rodeos, and much more).”

In some recent writings, he has recounted what he considered distorted advertising on his views, and that of other advocates of tax reduction, to augment his position.

He concludes, “Taxpayers should not be forced to subsidize PBS or NPR, and they shouldn’t be forced to subsidize OETA’s assaults on job creators.”

In his writings, Small details other non-core function spending reductions along these lines that would a total savings of roughly $20 million annually.

8. Eliminate state funding for losses on state golf courses – $400,000 annually.

From Fiscal Year 2001 to Fiscal Year 2009, Small found, Oklahoma state “lawmakers appropriated $6,530,000 for golf courses. This figure does not include the amounts for FY 2010 or FY 2011.”

OCPA has previously argued, “Oklahoma’s state resorts and golf courses—which do not pay property taxes to support essential services such as local schools, firefighters, and police—have no incentive to make a profit. Even if they did turn a profit, they would not be paying income taxes to the state—something their competitors who operate private resorts or golf courses are forced to do. These government-owned operations take money away from taxpayers who are risking their own capital instead of the taxpayers’ money.”

Small concludes, “Operating golf courses is not a core function of government. Oklahoma should get out of the golf course business altogether.”

9. Implement state usage of the private sector to contract with the state to provide services that the private sector can provide at a lower cost - $39 Million after first year, over $49 million annually after 3rd year

10. Reduce duplicative conservation district offices – $868,000 annually.

Small believes another obvious possible savings would be to eliminate administrative funds now spent on conservation district offices, even though every one of Oklahoma’s 77 counties already has a conservation district.

He contends, “The potential savings from implementing such reforms would be $868,000 annually.”

Put it all together, and Small’s “top 10” eventually totals more than $190,000,000 annually."

As the late Everett Dirksen might put it -- a million here, and a million there, and pretty soon you’re talking real money.

From concern to activism: Tulsa woman organizes friends, allies to favor education spending

Sat, 12 May 2012 22:00:00 GMT

A Tulsa woman worried about what she considers inadequate government spending on education has gone from concern to activism in the space of a few weeks. She is now leading an effort to educate “moms like me” on how to press for increased education spending in ways that are effective and respectful.

Marlow Sipes was at the state Capitol this past week, visiting legislators and participating in a rally of several dozen like-minded people. That event drew roughly 40 fellow Tulsans, and a similar number from elsewhere around the state.

Sipes is the mother of three children, including attending two at Eisenhower International School in the Tulsa public school system.

She got engaged, she says, after learning school officials plan to reduce teaching jobs around the district as this academic year ends. One post on the chopping block, she told CapitolBeatOK, is “a beloved teacher” of her oldest son. As she reports it, $40,000 in reduced spending at Eisenhower means two teachers will be let go, including her son's favorite. Who gets laid off is driven by seniority rules, she said.

Sipes started “49thisNOTOK.org” in early April, and a lot has happened since. Highwater mark, she says, was a large rally at the Edison High School Field House on April 26, a gathering that attracted 1,000 people to advocate for $50 million more in new or restored public education funding in the state education budget.

After the Edison rally, things have moved rather quickly – she and her friends were at the Capitol building engaging legislators roughly 72 hours after they came up with the idea to make the trip.

After speeches and distribution of talking points on the south side of the Capitol (on a beautiful day), Sipes and her friends went inside, to make the rounds visiting various legislators under the Dome.

The group's website includes instructions to supporters on how to learn who their House and Senate members are, how to ask to speak with them when they are actually in session, encouragement to remain respectful in discussions, and other practical directions. For this effort, the group, including talking points in support of the $50 million objective, featuring the assessment that Oklahoma ranks 49th in public education spending per student.

When she sat for a brief interview with CapitolBeatOK, Sipes reported she had visited with Tulsa state Senators Tom Adelson,

Gary Stanislawski and Brian Crain – and with Clark Jolley of Edmond. She said each conversation was cordial, with Adelson, a Democrat, the most supportive.

In her recounting, Sen. Jolley, a key player in budget negotiations, asked Sipes if she had a suggestion on where to capture the resources for such a spending boost. She reports she replied that deciding where to get the money is “your job, not mine.” She also planed to visit with state Rep. Ron Peters, her House member.

The $50 million is envisioned as a means to replace an equivalent amount of federal stimulus money, utilized last year, that will not be available in the coming fiscal year. Of that amount, roughly 6 percent, or about $3.6 million, would go to Tulsa.

Tulsa public school officials have said a total of 75 to 80 positions will be lost if the revenue is not forthcoming from the state.

Sipes said it is important to restore funding streams for public schools to pre-Recession (2008-09) levels.

Sipes indicated she is likely to remain involved in pressing for more school funding after the current session.

The Legislature will adjourn May 25; the outline of a budget accord for Fiscal Year 2013 is expected this coming week (May 14-18).

A-F grading for schools – still a bone of contention

Sat, 12 May 2012 22:40:00 GMT

Restore Oklahoma Public Education (ROPE), a conservative activist group focused on what it deems accelerating federal efforts to erode local control of public education, has continued to criticize the state government's move toward the new “A-F” grading system for schools.

ROPE's founder and leader, Jenni White, asserts that legislators – who authorized the system last year in House Bill 1456 as a means to give parents and school patrons a means to assess effectiveness – could not have envisioned the state Department of Education would employ the program as a means to advance federal school curricula, No Child Left Behind (NCLB) waivers and related objectives.

In one of her recent postings on the ROPE blog, White said, “I can't imagine they had any idea at the time that this would be used as part of the NCLB waiver and all the punitive rules for 'failing' schools that came along with them.”

White and other critics of the school grading system say that a majority of public schools may get failing grades under the system.

The agency counters, in a compilation it calls “myths and facts about the A-F school grading system,” that early simulations of the system project that “no more than 2 percent of schools would receive F's under the new system. Upwards of 10 percent would receive A's. It is likely that 60 percent of schools would receive A's and B's in the first release of letter grades planned for August 2012.”

Supporters say the grading system for schools is intended to mirror reforms begun in Florida under former Governor Jeb Bush, which have contributed to an improvement in school performance in the Sunshine State. The state Education Department's rules were designed to incorporate a number of factors in the letter grades, including student assessment test scores, student test gains, annual gains for students for lower performing students, and “whole school improvement – including graduation rates, ACT test scores, attendance rates, and related criteria.

As opposition to the agency's rules for implementation of the A-F system built this spring, Governor Mary Fallin restated her support as she approved administrative rules for implementation.

However, the House Administrative Rules and Governance Committee a week ago passed a resolution disaproving the rules, setting the stage for a potential inter-branch clash. When that happened, Superintendent of Public Instruction Janet Barresi commented,

"This last minute effort is really a red herring. It's about taking a good law and gutting it and weakening it so parents don't have a good idea about how their child's school is performing."

State Rep. Mike Shelton, an Oklahoma City Democrat, said when he filed House Joint Resolution 1125, “The administrative rules are contrary to the purpose of the law, and that is why I have filed a House Joint Resolution to disapprove those rules.”

After passage of the resolution of disapproval, Shelton said in a comment sent to CapitolBeatOK, “Our intent was to give parents an easy, transparent system for determining the effectiveness of their local schools. These rules written by the

Department of Education create a grading system that is convoluted, difficult to understand, read or follow.”

White said the push for an A-F school grading system has become part of the press for national curriculum and federal direction of public education – and, ultimately, a matter of dollars and cents rather than educational quality and local control.

Barresi has a different view, pointing to recent announcement that the state has received another $5.6 million for low-performing schools, including Oklahoma City's Centennial High School and Justice Alma Wilson Seeworth Academy, an alternative public charter school. She commented, in a release sent to CapitolBeatOK and other news organizations, “We’re grateful for this funding to improve our low-performing schools. This will help ensure each student in our state will be college, career and citizen ready by graduation.”

The Oklahoman, the Sooner State's largest newspaper, backed Barresi and Fallin in a recent editorial, saying the A-F system is easier to understand than the Academic Performance Index (API) that it would replace.

White remains steadfast in her critiques, concluding a recent narrative with a rhetorical question “Is education 'reform' is it about the kids, the parents, the schools - or is it really, only about money?”

The Legislature will have to pass Shelton's resolution disapproving the rules before adjournment, anticipated on May 25. Otherwise, the rules will take effect.

Massive income and sales tax cut in Kansas could boost Oklahoma tax cut hopes

Sat, 12 May 2012 20:41:00 GMT

The Kansas state Legislature passed what analysts say will be the largest tax cut in state history on Thursday (May 10) – and that measure could influence events under the Capitol dome here in Oklahoma City.

The news about Kansas broke about 90 minutes after Oklahoma Governor Mary Fallin had pressed members of the Sooner state’s House and Senate to send her a “major” income tax cut this year.

Steve Anderson, formerly a staffer at the Oklahoma state finance office who now works as budget director for Kansas Governor Sam Brownback, says that state’s tax cuts will be the largest proportional reduction in history.

Oklahoma Speaker of the House Kris Steele, given by CapitolBeatOK a brief sketch of developments in the Sunflower State, said (during the Noon Hour) that he and colleagues remain “determined to reduce the tax burden” – while funding core services of state government.

Steele said the Legislature has determined there is actually about $265 million more to appropriate this year than last, and repeated his belief that “a portion of that should go back to the taxpayers.”

Steele, in his weekly encounter with members of the Capitol press corps, said negotiations over the budget and tax issues had brought the key leaders “closer than ever” to an agreement. He added that “realistically” the parameters of a tax and budget accord need to be in place by a week from tomorrow – that is, Friday, May 18.

Steele told reporters he had alerted members of the House to be prepared to work on Friday next week so progress can continue on remaining laws that need to clear before the 2012 session’s end.

Earlier Thursday, Senate President Pro Tem Brian Bingman said discussions on budget and taxes remain “very fluid.” He said the Republican caucus “has a position, and we’ve all talked” about the tax and budget issues.

In response to a question from CapitolBeatOK concerning potential new life for reforms of tax credits and exemptions, as one means to free up resources for tax reduction, Bingman said there is “always a chance.” He seemed to anticipate Steele’s comments in saying negotiations among the chief executive, speaker and himself left them “not that far off” from an accord.

Steele and Bingman each indicated the state is looking at a total bond issue of $160 million to perhaps $200 million, spread over three to five years. However, each man restated past views that majority sentiment for a bond exists only on state Capitol improvements, although both the American Indian Cultural Center in Oklahoma City and the Pop Art facility in Tulsa continue to come up in deliberations over possible bond issues.

Concerning another major spending item, Steele and Bingman said they believe there will be agreement to begin paying $294 million “owed” for oil industry deep drilling incentives – presumably with installments under $100 million a year over a three year period. Other spending issues of note include approximately $3.5 million for the first year of implementation of the justice reinvestment initiative, and as much as $31 million for the first year of implementation of Human Service reforms.

(Note: A lower figure, $25 million, has also been cited as a possible first-year figure for DHS reforms, which ultimately, after full implementation of the Pinnacle Plan, will add roughly $150 million to the DHS budget. Although the three “co-Neutrals” have not yet agreed to the DHS reforms’ details, Steele reported today that negotiations remain on track, and that the oft-mentioned $25 million to $31 million is still a reasonable estimate of first-year costs.)

After the signing ceremony for House Bill 3052, the justice reinvestment initiative, Governor Fallin restated her support for a major income tax cut, saying she hoped legislators in both chambers will agree to send her such legislation. Fallin told reporters, including CapitolBeatOK, it was time for the Legislature to “talk the talk, and walk the walk.”

News stories in recent days have indicated an income tax rate reduction to 4.95 percent (the current top rate is 5.25 percent) is possible, while hopes for much greater reductions have faded. The news from Kansas could change that picture.

In Topeka, the state House approved a measure to slash income and sales taxes by $233 million beginning July 1. Annual relief could grow to $911 million over four years. While the measure is headed to Brownback now, there is renewed discussion of limiting or clarifying some provisions.

Renewed advocacy for a “major” income tax reduction in Oklahoma came less than 24 hours after a debate between supply-side economist Arthur Laffer and a defender of Oklahoma’s income tax status quo, Mickey Hepner of the University of Central Oklahoma.

New wave of Higher Ed bonds gain approval from state Council of Bond Oversight

Thu, 10 May 2012 23:02:00 GMT

The Oklahoma state Council of Bond Oversight has approved a cluster of proposals today allowing issuance of bonds by the Regents for Higher Education and the Water Resources Board.

Concerns about the state’s bonding provisions have been raised by Senator Patrick Anderson of Enid, a Republican.

At its afternoon meeting today (Thursday, May 10), the council approved to allow the Higher Ed Regents to “enter into Lease Purchase Agreements with the Oklahoma Development Finance Authority” (ODFA) to secure some $40,385,00 in lease revenue bonds. Those bonds are part of a broader package worth at least $200 million.

According to an update on the Council’s website, Gov. Fallin has appointed two new members to the Council, effective September 27: Gary C. Huckabay and R. Marc Nuttle. The pair await state Senate confirmation.

The five members of the council include the director of the Office of State Finance, two members chosen by the House Speaker, and one member appointed by the President Pro Tem of the Senate.

On Thursday, two items were approved for the Water Resources Board. One allows issuance of $70 million in “Fixed-Rate and Tax Exempt Revolving Fund Bonds.” The second allows OWRB to issue $22 million in “Fixed-Rate and Tax Exempt New Money Revenue Bonds for the State Loan Program.”

Also approved, for the Oklahoma Development Finance Authority, was $8 million for the state’s “Economic Development Pooled Finance Act Taxable Revenue Note” for a project listed on Thursday’s meeting agenda as for the “International Paper Company.”

Senator Anderson has requested an attorney general’s opinion on constitutionality of the “Master Lease Personal Property and Real Property Programs.”

Anderson said these programs for the state colleges and universities are disturbing because they are not approved by either the Legislature or voters. They are funded with student fees and tuition. Also in question, from Anderson’s perspective, are bonds for the River Parks Project.

According to James C. Joseph, the state Bond Advisor, “The proposed obligations are neither an indebtedness of the State … nor the ODFA, but are limited obligations payable solely from the sources specifically pledged to their payment.” Joseph highlighted this foregoing language on a memorandum, dated today, provided to members of the Council.

Joseph’s memo specified six conditions to the bond issue approval, notably including “resolution of all legal questions … to the satisfaction of Bond Counsel, Underwriter’s Counsel and the Attorney General.”

In a statement to reporters Thursday, Anderson asserted, “I believe there are some fundamental flaws in the manner in which the Master Lease programs have been established and are operated that make them unconstitutional. The original purpose of these programs was to allow colleges and universities to save money when purchasing copiers and computers, but has now ballooned to annual multi-million dollar requests.

“I believe that our State Constitution requires that the people of the State of Oklahoma vote to approve this debt or, at the very least, it should be required that the Legislature vote to approve these projects.”

In 2010, projects in the Master Lease Real Property program totaled $102.7 million, Anderson said. The following year, the total was $131 million. In 2012, project requests will total $250 million, Anderson projected.

Anderson contends, “The amount of debt being proposed in the real property program has increased exponentially over the last few years. While not all requested programs are funded, there appears to be no maximum limit to the cumulative total of the debt that is being incurred under this program. This is not right or fiscally responsible of the Legislature to allow this to continue.”

The programs approved today for bond refinancing included two for Langston University ($2.6 million and $5.23 million), Northeastern State ($3.16 million), Northern Oklahoma College ($1.825 million), Oklahoma State University ($18.11 million), Seminole State College ($3.05 million) and the University of Central Oklahoma ($1.57 million).

Previously, Anderson opposed intentions to use the Master Lease programs to build a new Medical Examiner’s office, rather than going to the Legislature for consent. He said:

“It stretches one’s imagination to claim that a new building for the State Medical Examiner should be funded through the Regents for Higher Education. Furthermore, the building that they are proposing to build is the size of a football field at a cost of nearly $1,000 per square foot.

“My fear is that if the door is opened to allow legislators to add projects to the Master Lease program then there will be no stopping the abuse that will be sure to follow. If this abuse is allowed to continue then next year we will probably see the University of Oklahoma Native American Culture Center or the Tulsa Community College Pops Museum.”

“It appears at this point that the State’s Attorney General is the only person who can protect the taxpayers of Oklahoma from these continued abuses. I am hopeful that Attorney General [E. Scott] Pruitt, as a fellow constitutional conservative, will agree with me that the Master Lease programs are unconstitutional and that these bond issues should be required to be approved by a vote of the people of Oklahoma.”

State Rep. Jason Murphey of Guthrie, tried unsuccessfully in March to restrain the Master Lease Program’s bonding powers for the ME’s office at UCO. A House panel rebuffed Murphey’s effort.

More favorably inclined to the ME bond than Anderson or Murphey is state Sen. Clark Jolley. Earlier this session, he told Oklahoma Watchdog’s Peter J. Rudy, “The best plan would be for us [the legislature] to write a check. Plan B would be to have a bond issue that this Legislature votes to approve for the Medical Examiner and for the Medical Examiner to be able to build their own building.”

However, state House leaders have said repeatedly that only a state Capitol repair bond issue is likely to pass this year. Speaker Kris Steele reiterated that in Thursday’s session with Capitol reporters, echoing what Senate President Pro Tem Brian Bingman had said earlier in the day.

Sens. Jolley and Anderson have jousted over bond issue authority over the past two years.

Justice Reinvestment bill signed, laying basis for policy transformations

Wed, 16 May 2012 11:00:00 GMT

On Wednesday (May 9), Oklahoma Governor Mary Fallin signed into law House Bill 3052, the capstone of a three-year effort to bring significant reform to the state’s criminal justice system. A formal bill signing ceremony was held in the state Capitol the next day, to allow supporters and advocates of the reform to be together to mark enactment.

Fallin, before affixing her name to the document incorporating the “Justice Reinvestment” vision, said the measure’s reforms are among the top priorities of her administration, intended to improve “a primary function of state government. … In addition to lowering crime rates, reducing the incarceration rate and giving law enforcement more resources to fight crime, this bill will help us to save taxpayer dollars by helping our corrections system operate in a more efficient and effective way.”

Fallin said she knew the surge of incarceration numbers over the past decade was unsustainable, leading her to work closely with supporters of the reforms. The Sooner State has had, in several recent years, the nation’s highest incarceration rate of women, and one of the highest incarceration rates, period.

The state Capitol large conference room where the signing was held was packed with advocates, including Oklahoma County District Attorney David Prater, Oklahoma City Police Chief Bill Citty, Mental Health Commissioner Terri White, Oklahoma County Sheriff John Whetsel, Corrections Director Justin Jones, state Rep. Lisa Billy of Lindsay, Supreme Court Chief Justice Steven Taylor, state Sen. Jonathan Nichols of Norman, and Amy Santee of the George Kaiser Family Foundation.

A half-dozen television cameras and most of the state Capitol press corps assured wide visibility for the historic occasion.

Speaker of the House Kris Steele, a Shawnee Republican, reflected, “Today marks the beginning of a tougher, smarter fight against crime. Police will get more resources, offenders will be held more accountable, prisons will have the space to incarcerate dangerous criminals and Oklahoma will be much safer as a result. We’re thrilled to have been part of the unprecedented collaboration across our entire criminal justice system that has delivered this meaningful law to the people of Oklahoma.”

Steele noted the reforms in the legislation are “backed up by data” drawn from the experiences of other states.

The new law puts in a place a state grant program for local law enforcement agencies, intended to allow “real time” use of high technology to guide use of resources, to be quickly deployed in areas where crime is spiking. Creation of the state grant system comes as federal grant dollars for such purposes are, generally, drying up.

Among the measure’s most notable changes, accounting for the majority of its projected impact on incarceration numbers and on recidivism, is a mandate for nine months of post-release supervision of all felons. The bill also established intermediate sanction facilities, evaluations of accused felons, mental health and substance abuse resources, and other changes.

Advocates anticipate the new provisions will allow the state to flatten the growth rate of incarcerated Oklahomans, freeing some resources for more effective alternatives.

The ceremonial signing came one year to the day after Fallin put her signature on House Bill 2131, another Steele bill intended to divert low-risk nonviolent offenders to less expensive forms of supervision rather than imprisonment.

That measure, in turn, built upon House Bill 2998, a 2010 statute aimed at more effective programs for non-violent female offenders.

Still ahead, on the November ballot, will be a referred constitutional ballot measure that, if approved, would remove the governor from review of all paroles. (Oklahoma is the only state with this requirement, presently.)

Approval of the ballot question, combined with the recasting of other provisions in the three statutes, is projected to yield more than $200 million in savings, advocates say.

Senate President Pro Tem Brian Bingman of Sapulpa, Steele’s co-sponsor, said in comments provided to CapitolBeatOK, “We’ve made a historic public safety reform that puts Oklahoma’s broken criminal justice system back on a sustainable path. By being both tough on crime and fiscally conservative, this law will reduce violent crime, give crime fighters the tools to do their job and ensure our criminal justice system keeps Oklahoma families and communities safe.”

Robert Coombs of the Council of State Governments (CSG) praised Oklahoma for establishing a justice reinvestment process which brought together “all stakeholders. It was bipartisan and inter-branch.” He said Oklahoma is “on par with every other state we have been working with” in criminal justice reform.

He said the state’s series of laws over the past three years set it on course to control costs, curb recidivism and establish “sustainability” as an alternative to spiraling cost.

Coombs concluded, “The bad news is that this is just beginning. He urged state policymakers to bring discipline and determination in prioritizing limited resources to improve the system. He said the national group will support “implementation, and track the outcomes.”

Speaker Steele grew emotional as he praised the large group of reformers who joined the effort. Indeed, the support coalition ranged from conservative Republicans to liberal Democrats.

He praised Santee and Margaret Erling, both of Tulsa, for their past in pushing the measure to passage. Santee of the Kaiser Foundation is a leader at the early successful examples of reform, the Women in Recovery program.

Steele also singled out members of his staff who drafted the legislation.

Later in the day, during his weekly encounter with Capitol reporters, Steele said the measure’s passage was one of the highlights of his career in public life. Estimated first year cost of the reforms, analysts have said, is around $3.5 million. Steele reflected, “the tide has turned” in a better direction on criminal justice in Oklahoma.

In her comments at the signing, Fallin praised the Speaker, saying she knew the cause had become “near and dear” to Steele’s heart.

H.B. 3052 will take effect on November 1.

Where the twain does not meet: Dr. Laffer vs. Dr. Hepner

Thu, 10 May 2012 17:28:00 GMT

A full room of legislators, lobbyists, academics and activists of all stripes witnessed a debate over income taxes between two economists at the Oklahoma History Center on Wednesday (May 9). Sparks flew at times. While the tone was generally civil, the two men did not persuade each other on key points.

University of Central Oklahoma Professor Mickey Hepner defended the state’s income tax status quo, while Professor Arthur Laffer made the case for income tax cuts, pressing anew for the proposal he helped craft that would phase out the income tax levy over a decade or more.

Hepner said maintaining or increasing state government spending is critical to the state’s quality of life, while Laffer argued Oklahoma can go to the next level in economic success by joining the ranks of states that are inviting to income producers.

In an interesting twist in their discussion, the two agreed Oklahoma has weathered the Recession well and that the state economy is undeniably on an upward track, especially in comparison to most other states. They parted company sharply on what should come next for the Sooner State.

Hepner said he has “serious concerns about the model used” in Laffer econometric study making the case for an income tax phaseout, while nonetheless characterizing it as a sophisticated system. He said tax cuts should follow (as in some past cycles) good revenue years, not be the basis for projecting future good tax revenues. He asserted, “The Oklahoma economy is doing better than most states that don’t have an income tax.” He contended “we are thumping Texas” and “bumping Texas metrics.”

He passionately contended a tax reduction or phase out “won’t generate the benefits proponents are claiming.” He contended the state’s options then “will be to raise the sales tax or property tax, or to cut spending.” He observed that in that case, a property tax hike would be unlikely, and that sales taxes are already high.

Hepner’s thesis, stated in several different ways, is that the state’s needs for education, roads, prisons and other government projects outweigh any benefits that might come from cutting taxes. He observed that there are “undeniably” benefits from lower taxes, but that “cutting government spending would create harm, undeniably.” Arguing from his premises, he concluded the state will better progress with retaining the structure of existing government spending and taxation.

He concluded one of the exchange’s opening segments by saying, “My fear is that is that if this plan doesn’t generate the benefits that proponents project, it will harm Oklahoma’s quality of life.”

Dr. Laffer placed himself squarely in the tradition of the late Nobel economist Milton Friedman, his colleague of many years at the University of Chicago. Laffer referenced his work on the intersection of economic theory with the real world of policy-making, including involvement in the historic Proposition 13 property tax reductions that helped trigger an economic surge in California. He reflected, as Larry Gatlin has said, “This is not rocket surgery.” Laffer continued, “Government spending is taxation.”

He observed that Oklahoma taxation and spending have risen, relative to personal income. His fundamental analysis: “All taxes are bad, but some are worse than others. “

He pointed to both his work for the Oklahoma Council of Public Affairs, and books (including “Eureka”) to note that while it is not possible to predict exactly how a set of tax changes will play out in every state, it is “common sense” to observe that zero or low income tax states are, over time, outperforming high income tax states. He stressed that of the 11 states that have introduced a state income tax in the modern era, “all have lost ground/declined as a short of national GDP.

"The zero/lower income tax states do better.”

He noted that the often-acclaimed income taxes early in the presidency of John F. Kennedy “led to a boom” – followed by the economic follies of “the four stooges” – Presidents Johnson, Nixon, Ford and Carter. Laffer argues from evidence that just as JFK’s tax cuts provoked economic growth, Ronald Reagan’s two decades later led to another boom. His thesis for the state of Oklahoma, and for its problems of poverty: “You’ve got a chance to make Oklahoma better. When you talk about poor people, the best form of welfare is a good paying job.”

Treasurer Ken Miller served as moderator of the History Center event, jointly sponsored by the State Chamber, OCPA, and the Oklahoma Policy Institute.

Miller observed the state is low (37th) in overall state and local tax burden, but seventh highest in sales taxes – yet 47th lowest in property taxes. Then there are personal and corporate income taxes. He asked each economist how they would structure government revenue sources to maximize growth and fairness.

Hepner said the system should be designed to raise money with the lowest possible cost. He said it is important to “keep in mind income tax and property tax are deductible. … If you rely more on deductible taxes, you reduce federal tax liability.” Relying more on those, and less on sales taxes, is a better tradeoff, he asserted.

Laffer repeated his belief that allowing a phase out permits “ten years to identify problems,” leaving time for correctives or moderation. He reflected, “Taxes don’t redistribute income, they redistribute people. If you want to make the state attractive to people, lower taxes.” While agreeing with one of Hepner’s contentions, that good education should be a government objective, he said a more critical factor is to make the state “a better place to live.”

Briefly the discussion turned to the tradeoffs of a national sales tax versus national income taxes. Laffer said, “if that were the choice,” he would support a sales tax rather than income levies. Hepner strongly argued against that tradeoff.

Miller asked the pair to consider evidence from Rich States/ Poor States, published by the American Legislative Exchange Council (ALEC). He pointed to what he considered mixed evidence on the difference in performance of no-income tax states like New Hampshire and Tennessee, versus a state like New York that has recently performed well, economically. He also noted that Oklahoma has outperformed some of the no-income tax states.

Laffer observed that Oklahoma is among the states that have been cutting taxes, and that Tennessee, for example, has not been as aggressive in some respects in creating a tax-friendly environment – although certainly “friendlier” than his former home of California. Hepner noted that distribution among the income tax vs. no-income tax states was not consistent. In competitiveness rankings, distribution of economic vibrancy was mixed.

The pair seemed to agree that a number of economic and taxation factors matter, not just “all one thing.”

The men did not agree on anticipated or projected “dynamic” effects on jobs growth that Laffer anticipates will occur (and, he notes, historically has occurred) in the wake of income tax reductions.

Laffer said “I hope you do it. Get rid of all deductions and exemptions. Go to a lower rate”

of income taxation. He stressed his view that “the income tax protects the wealthy, and prohibits the poor from becoming successful.” His point was that taxes change behavior. He observed, “The dream in America has always been to make the poor rich, not to make the rich poor.”

Dr. Hepner argued that an income tax phase out would not be prudent, that the state would be forced, as he contended repeatedly, to “raise taxes or cut spending.”

Among the sharpest disagreements was over that “dynamic” effect of tax reduction. Hepner was dismissive of this analysis, and said taxes were needed to finance improvements in government functions in core areas. Laffer said the object should be creation of economic vibrancy, not maintenance of government – that new economic activity will, in turn, be taxed and broaden the base.

The two men also clashed on the importance of teacher pay in government education systems. Hepner said the state could not expect to attract or retain quality teachers without higher pay; Laffer countered with his contention that teacher pay is not the crucial factor in teacher, or student, performance.

Miller noted that Oklahoma news reports provide evidence that the more aggressive tax reduction/elimination plans “have not gained traction for various reasons ranging from natural gas prices to lack of interest in reducing spending or incentives.”He asked if multi-year reductions and/or growth triggers should be part of a tax cut plan.

In some of their final arguments, the pair clashed over what the result of income tax reduction would be. Hepner repeated his contention would lead the state either to “cut services or raise [other] taxes.” Laffer argued that some taxes are worse than others, and that an income tax phaseout would make the system simpler, and “then you have certain expenses that are gone.”

Hepner's argument was that the Legislature should adopt a “pay as you go” approach on all tax or spending questions. Laffer endorsed triggers as a moderating mechanism that would, in good revenue years, still allow progress to reduce taxes and “start on the way to prosperity.”

Editor’s Notebook: Capitol Repairs, Open Carry, judicial portrait, Mason’s art

Wed, 09 May 2012 04:17:00 GMT

From interviews and an editor’s notebook: Capitol repairs may trigger a major bond issue, Second Amendment advocates remain hopeful for passage of Open Carry, a local university president’s portrait will be unveiled in Denver, and a beloved basketball star is displaying his art works under the dome.

* * *

The range of state Capitol repairs -- and the extent of a possible bond issue to finance those repairs – continues to engage many legislators as they consider income tax reform ideas.

The bond issue is inevitably becoming tied in with spending in general, and possible income tax reductions in particular.

In a brief interview Tuesday (May 8), House Appropriations and Budget Chairman Earl Sears, a Bartlesville Republican, said the total amount being considered for Capitol repairs is $160 million to perhaps $200 million. He said the total would probably be divided into three to five years. He confirmed for CapitolBeatOK that “$50 million a year” is a reasonable figure, but stressed “nothing has been settled yet.”

Governor Mary Fallin called for repairs to the state Capitol in her State of the State address, specifying she supported a bond issue for that purpose without naming an amount.

Legislative leaders have indicated likely support for such a bond, but the possible range of annual costs has varied widely. The widely heard figure has been $50 million annually over several years, but in some cases that annualized figure has been higher.

About the only thing everyone agrees on is that major repairs are needed for the exterior of the south side of the building, structural work on the building’s base and a renewed push for modernization of plumbing and fixtures. The governor and legislators have had long sessions with the Capitol architect and others as they have deliberated on the possible expenditure.

Last week, in his weekly encounter with reporters, including CapitolBeatOK, House Speaker Kris Steele, a Shawnee Republican, stressed that the only bond proposal under serious consideration for was the Capitol repairs.

He has repeatedly and rather directly said that House members do not support bonds to help finish the American Indian Museum and Culture Center in Oklahoma City and to build a pop culture museum in Tulsa.

Senate Minority Leader Sean Burrage, a Claremore Democrat, is making some critical negative noises about any possible bond, asserting an increase in debt would be irresponsible in a time when government finances and tight reduced revenues (in the form of lower taxes) are under consideration.

House Minority Leader Scott Inman, a Del City Democrat, contends the Legislature should avoid any tax cuts, and use $120 million in direct appropriations to start the Capitol repairs, avoiding a bond issue entirely.

Among Republicans, many advocates of tax reduction echo Democrats in one sense – saying it would be better to pay for repairs from state government’s cash flow rather than with a bond issue.

Republican leaders have huddled frequently over the last few work days in Sears’ office, clearly focused on the range of tax reduction possibilities, and construction of the required annual balanced budget.

Concerning taxes, “conventional wisdom” in the halls of the Capitol (sometimes borne out by events, but sometimes not) is projecting just enough of an income tax cut to get the current 5.25 percent top rate under 5 percent by year’s end.

Sen. Clark Jolley of Edmond, a key Republican in the upper chamber and an ally of Senate President Pro Tem Brian Bingman of Sapulpa, has been in regular deliberations with Sears.

Greater clarity on the extent of tax cuts, budget restraint (or lack thereof), possible bond spending and further government efficiency mandates is likely to emerge late this week or early next.

Meanwhile, the income tax phase out concept will get a boost during Dr. Arthur Laffer’s involvement in a major debate on tax policy, scheduled for Wednesday (May 9).

* * *

The Oklahoma Second Amendment Association (OK2A) is hopeful that the Legislature will soon complete action on Senate Bill 1733, sending the measure to Governor Mary Fallin for her signature. Gun rights groups joined forces this week for a rally at the second floor rotunda of the state Capitol.

OK2A’s Tim Gillespie told CapitolBeatOK on Tuesday (May 8) the group has worked for years to become effective working to advance the rights of gun owners. S.B. 1733 would make Oklahoma the nation’s 43rd Open Carry state.

Among other provisions, the legislation would recognize a right to carry firearms on personal property, and relax SDA (self defense act) notification of police from “first contact” to “first opportunity,” so that, OK2A says, “a citizen isn’t possibly put in a position to have to interrupt a police officer to fulfill the requirement.”

S.B. 1733 would “ensure that employers cannot keep an employee from keeping their firearm and ammo locked in their vehicle while at work.” Under the proposed law, carry permits could be mailed to qualified applications so they do not have to take time off work to pick up permits. The measure also limits use of emergency powers to attempt weapons’ confiscation.

* * *

Former U.S. Court of Appeals Judge Robert Henry will be honored at the U.S. Courthouse in Denver on Wednesday (May 9), when his portrait is unveiled. Judge David Ebel will unveil the portrait and Henry, now president of Oklahoma City University, will respond. The picture was painted by Mike Wimmer, OCU’s artist in residence, who has two previous portraits hanging at the Byron White Courthouse.

* * *

One of the most popular basketball players in Oklahoma history, Desmond Mason, is exhibiting paintings in the Capitol’s East Gallery through July 1. The presentation called “Generation Next: Chapter 1” opened April 30.

Mason majored in studio art at Oklahoma State University in Stillwater, where he played for Coach Eddie Sutton. He went on to a brief career in the National Basketball Association, playing for several teams, including the Hornets (during their Oklahoma City sojourn) and for the inaugural versions of the Oklahoma City Thunder.

The East Gallery is open weekdays 8 a.m. to 6 p.m., and weekends 9 a.m. to 4 p.m. The Oklahoma Arts Council is sponsoring the Mason exhibition.

Court mediator names Oklahoma water task force

Mon, 07 May 2012 23:07:00 GMT

Editor’s Note: On Monday (May 7), mediator Francis E. McGovern named a water task force. The following is a joint press release from Oklahoma Governor Mary Fallin, Chickasaw Governor Bill Anoatubby, and Choctaw Chief Gregory Pyle.

As part of an effort to resolve ongoing litigation over water rights among the State of Oklahoma, the Chickasaw Nation, and the Choctaw Nation, a new Task Force was assembled today in order to discuss and consider possible solutions. The Task Force was convened by Court appointed mediator, Francis E. McGovern, and includes 19 geographically, politically and demographically diverse Oklahomans.

Oklahoma Governor Mary Fallin, Chickasaw Nation Governor Bill Anoatubby, and Choctaw Nation Chief Gregory Pyle issued the following joint statement:

“Water rights and water security are linked to both economic and quality of life issues. Our hope is that this new Task Force will help to pave the way toward an agreement that is fair and beneficial to all relevant parties.”

The deliberations of the Task Force will be governed by the confidentiality provisions of the Court’s Agreed Mediation Order: “…the Mediation will be conducted pursuant to Rule 408, F.R.E. Any and all communications, both written and oral, with the Mediator or between or among the parties that are made in the course of the Mediation shall be deemed confidential and inadmissible in any judicial or administrative proceeding for any purpose.”

Professor McGovern will report periodically to the Court concerning the progress of the discussions of the Task Force.

Task Force Members:

· Gov. Bill Anoatubby

· Gov. Mary Fallin

· Chief Greg Pyle

· Gary Batton

· Clay Bennett

· Mike Cawley

· Glenn Coffee

· Jim Couch

· Pete Delaney

· Pennie Embry

· Amy Ford

· Harold Hamm

· Robert Henry

· Jason Hitch

· Brian McClain

· Aubrey McClendon

· Larry Nichols

· Mike Samis

· David Thompson

Revenue Collections Resume Rise In Spite of Gross Production Decline

Thu, 03 May 2012 16:38:00 GMT

Oklahoma’s total revenue collections resumed their upward trajectory in April after slipping slightly in March, while gross production taxes continued to shrink, State Treasurer Ken Miller said Wednesday (May 2) as he released the monthly gross receipts report.

“Oklahoma’s economy is reflecting health and resilience in spite of the low price environment for natural gas,” Miller said.

Total collections for the month were $1.16 billion, up by almost $83 million or 7.7 percent from April of last year. Miller said all major sources of revenue saw growth over the prior year except for gross production, which fell by more than 20 percent.

Income tax collections jumped by more than 10 percent from the prior year and accounted for almost 50-cents of every dollar collected in April, the tax-filing deadline month. Sales tax collections, up by 7.1 percent, moderated slightly in April following months of double-digit growth.

Gradual erosion

In April, collections from gross production taxes on oil and natural gas were less than the same month of the prior year for a fifth consecutive month, and for the sixth time in seven months.

During those months, the percentage of gross production taxes generated by natural gas production has steadily decreased as prices have fallen. In October, 51 percent of gross production collections came from gas extraction. By March, the amount had fallen to 34 percent. The proportion of the tax produced by natural gas for April is not yet available.

Gross production collections in April reflect prices and production from February, when the spot price for natural gas at the Henry Hub in Louisiana, considered a benchmark for gas prices, averaged $2.51 per thousand cubic feet. Since then, prices have dropped even further, averaging less than $2 per thousand cubic feet in April.

“We will closely monitor falling natural gas prices in the coming months to gauge any impact,” Miller said. “Right now, the Oklahoma economy looks good and free of any spillover effects.”

State economy weathering well

Miller said the state’s economy appears to be “weathering well the challenge” as it shows continued improvement.

“Collections in all revenue categories are up except for gross production,” he said. “Consumers appear confident in the direction of Oklahoma’s economy with sales still climbing, though at half the rate seen in March.”

Since hitting the trough on revenue collections from the recession in February 2010, 12-month collections have increased by almost $1.6 billion and are now only $336 million below the peak in December 2008.

Miller pointed to the latest reports on state unemployment as another bright spot.

“At 5.4 percent, the March unemployment rate is very good news,” he said. “Reports show 21,460 more Oklahomans have jobs now than a year ago. And this compares to a U.S. unemployment rate of 8.2 percent.”

April collections

The revenue report for April shows gross collections at $1.16 billion, up $82.7 million or 7.7 percent from April 2011.

Gross income tax collections, a combination of personal and corporate income taxes, generated $565.4 million, an increase of $55.3 million or 10.8 percent from the previous April.

Personal income tax collections for the month are $489.8 million, up $45.6 million or 10.3 percent from the prior year.

Corporate collections are $75.6 million, up by $9.7 million or 14.7 percent.

Sales tax collections, including remittances on behalf of cities and counties, total $347.3 million in April. That is $22.9 million or 7.1 percent above April 2011.

Gross production taxes on oil and natural gas generated $62 million in April, a decrease of $16.5 million or 21.1 percent from last April. Compared to March reports, gross production collections are down by $5.7 million or 8.4 percent.

Motor vehicle taxes produced $56.7 million, up by $6.9 million or 13.8 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 $125.2 million during the month. That is $14.1 million or 12.7 percent more than last April.

Twelve-month collections

Between May 2011 and April 2012, gross revenue totals $10.95 billion. That is $954.8 million or 9.6 percent higher than collections from the previous 12-month period.

Gross income taxes generated $3.82 billion for the period, reflecting an increase of $417.4 million or 12.3 percent from the prior 12 months.

Personal income tax collections total $3.29 billion, up by $304.9 million or 10.2 percent from the May 2010 to April 2011 period. Corporate collections are $531.2 million for the period, an increase of $112.4 million or 26.8 percent over the previous period.

Sales taxes for the period generated $3.98 billion, an increase of $303.3 million or 8.3 percent from the prior 12-months.

Oil and gas gross production tax collections brought in $972.5 million during the 12 months, up by $27.5 million or 2.9 percent from the previous period.

Motor vehicle collections total $682.3 million for the period. This is an increase of $61.3 million or 9.9 percent from the trailing 12 months.

Other sources generated $1.5 billion, up $145.4 million or 10.8 percent from the previous 12 months.

Steele calls passage of justice reinvestment initiative “a significant moment,” reflects on a quiet week at the Legislature

Fri, 04 May 2012 01:28:00 GMT

It was a quiet week at the state Capitol, but does not mean things were not happening. Monday’s decision ending the Personhood Initiative drive got t most attention, but arguably it was not the most notable event of the week.

Without the stress of deadline week, the House of Representatives accepted Senate amendments to House Bill 3052, the historic justice reinvestment initiative that House Speaker Kris Steele has shepherded through the Legislature.

After a 71-18 vote in the lower chamber, the measure now sits with Governor Mary Fallin.

In an interview with CapitolBeatOK, Steele said, “I do think it is a significant moment; in fact, I think it is a game changer of the state of Oklahoma and the way that we handle our criminal justice system. I think that it is going to give us an opportunity to make decisions based on facts and evidence, rather than emotions and anecdotes.”

He continued, “More than anything, I think we’re provided an opportunity to increase public safety by requiring the supervision component for everyone that is released from prison.

“Also, it has given us an opportunity to relax or relieve some pressure on our current prison population, by the effective use of intermediate revocation facilities for low risk nonviolent offenders, as well as provide necessary resources to local law enforcement entities to really focus on prevention and strategies within their jurisdictions for preventing crimes from ever being committed in the first place.”

A bump in the road for legislative leaders came last week with House rejection of a workers compensation “opt out” bill pressed by Senate President Pro Tem Brian Bingman of Sapulpa.

Steele told CapitolBeatOK he believes the opt out proposal is worthy, but probably dead for this year. He commented, “I am a big advocate for additional workers compensation reform. I think this opt out plan is a viable option. It ought to be considered. To be honest, … at this point in the session, it is more likely than not that the issue will be studied over the course of the interim, and become a centerpiece for next year’s legislative session.”

He continued, “That being said, there are some vehicles that are still alive related to the workers comp system that could be utilized should a plan come together, to give us an opportunity to continue to work on that issue.”

Quiet weeks at the Capitol can sometimes be deception. Asked about discussions behind the scenes this week, Steele reflected, “We’re at the point in the session, where we have about three weeks left before we are constitutionally required to adjourn for this session. So, we’re focusing primarily on conference committees. That’s where the bulk of our policy discussions will take place.

“Outside of that, we’re continually, almost daily now, talking about our budget negotiations and our income tax reform/reduction proposals. I think that we’re right where we need to be in relation to all of those issues.

“I suspect that the budget and the income tax reform proposal will all come together soon, probably in the next two weeks, and we’ll be able to run those proposals through the legislative process.

“We’re gathering input from our caucus members as we speak in order to put together a balanced budget, a conservative budget, but one that protects core services of government while reducing the overall tax burden on Oklahomans. We’re very excited about the prospects of being successful with these particular goals.”

Steele said the Legislature is unlikely to finish its work early. He said, “I don’t think so, not at this point. We would love to get done early, but we don’t want to shortchange the work that is in front of us. And, given the magnitude and the amount of work that we have left, I think we’re going to stay here until the last Friday in May.”

Editor’s Notebook: Bingman back, tax debate slated, liability limit signed, personhood appeal

Wed, 02 May 2012 22:05:00 GMT

From an editor’s notebook, Bingman will be back as Senate President Pro Tem, Art Laffer and Mickey Hepner will debate tax cuts in Oklahoma City, a “good faith” liability exemption has been enacted, and advocates of personhood are pondering an appeal of this week’s state Supreme Court ruling.

* * *

State Senator Brian Bingman of Sapulpa has been reelected President Pro Temp, garnering unanimous support in the Republican caucus and words of praise from his Democratic peer, Minority Leader Sean Burrage of Claremore.

In a statement sent to CapitolBeatOK, Burrage said he was “genuinely pleased” Bingman will remain leader of the upper chamber at the Capitol in Oklahoma City. He reflected, “While we may differ on policy issues, he is a great friend and an asset to the State Senate and to Oklahoma. I want to offer my sincere congratulations to Senator Bingman, and I look forward to continuing to work with him in the 54th Legislature.”

Majority Leader Mike Schulz of Altus described Bingman as “a common-sense conservative leader defined by Oklahoma values and a commitment to moving our state forward." Senator Clark Jolley of Edmond praised Gingman’s role in achieving medical malpractice lawsuit reforms and changes in workers compensation provisions.

Majority Whip Cliff Branan of Oklahoma City formally nominated Bingman for retention of the top job during a caucus gathering on Monday.

* * *

Next Wednesday, Dr. Arthur Laffer, the father of supply-side economics whose analysis has laid the basis for major tax cut proposals, will debate University of Central Oklahoma business dean Mickey Hepner.

The joust will focus on tax reduction/phase out proposals in Oklahoma, and is slated for 12:30 p.m. at the Oklahoma History Center.

The event is co-sponsored the Oklahoma Council of Public Affairs and the State Chamber.

* * *

Governor Mary Fallin has signed House Bill 2419, a measure intended to eliminate liability for those who provide safe places during several weather. State Rep. John Enns, an Enid Republican, sponsored the measure.

Enns said, in a statement sent to CapitolBeatOK, “After the governor vetoed a shelter liability bill that singled out one set of business owners, lawmakers decided to send her a better bill that did not single out any one entity and which would take immediate effect upon her signature.”

The legislation carried an emergency clause, and goes into effect immediately.

State Rep. Eric Proctor, a Tulsa Democrat, had pressed an earlier version of the legislation which had focused the liability exemption for “good faith” actors in the mobile park industry.

In his statement on the new law, which passed in the House 89-2, Proctor said the measure would never have gained enactment without the determination of fellow Democrats and 16 Republicans who had sought to override Fallin’s veto of the original bill, H.B. 2419.

Senator Brian Crain, a Tulsa Republican, had co-sponsored the earlier bill – which passed 92-0 in the House and 40-1 in the Senate. The veto override attempt was close (47-50) and quickly triggered a push to advance Enns’ version.

* * *

This year’s Oklahoma battle over personhood may not be over. Sponsors of the Personhood Initiative said, in a document sent to CapitolBeatOK yesterday (Tuesday, May 1), that the state Supreme Court’s ruling slapping down the constitutional initiative before completion of petitioning was based on faulty premises.

Spokesmen for Personhood USA contend the state court’s decision is wrong. To bolster their arguments, they pointed to Justice Antonin Scalia’s analysis in a dissent to a 1992 decision, Casey v. Planned Parenthood.

Scalia wrote, “The permissibility of abortion, and the limitations upon it, are to be resolved like most important questions in our democracy: by citizens trying to persuade one another and then voting.”

Gualberto Garcia Jones, legal analyst for Personhood USA, said both the Casey decision and Roe v.Wade “have no basis in law.” He asserted “the undue burden of the standard of Casey is completely unworkable.” He continued, “If Oklahoma citizens are denied the opportunity to do so, our only recourse is to petition the Supreme Court.”

Also criticizing the state court decision was Steve Crampton, Vice President for Legal Affairs and General Counsel for Liberty Counsel, who represents Personhood Oklahoma. He said:

“This ruling epitomizes judicial overreaching. It not only misinterprets and misapplies federal constitutional law, but it also denies states’ rights and strips Oklahomans of their right to petition for a substantive change in state law, which is guaranteed under the state constitution. We are hopeful that the United States Supreme Court will reverse this decision.”

Dan Skerbitz of Personhood Oklahoma defended both the constitutional initiative and the statutory proposal that died in the Legislature two weeks ago. He said, “The people of Oklahoma will not be silenced. We have 13,000 volunteers who have been circulating petitions and are ready and willing to continue this fight for human lives. We are more determined than ever to rise up against judicial tyranny and cowardly state representatives who do not represent the will of the people of Oklahoma.”

State Court slaps down Personhood Initiative

Tue, 01 May 2012 15:38:00 GMT

The Oklahoma state Supreme Court on Monday, April 30 slapped down Initiative Petition No. 395 – the Personhood Initiative – a proposed state constitutional amendment which might have been on the November general election ballot if advocates had garnered sufficient valid signatures.

The ruling continued a pattern of pre-certification (and pre-circulation) review of initiative petitions that began in the 1990s, when the state High Court struck down an earlier pro-life initiative. That ruling was controversial at the time, because ballot measures previously were allowed to gain status and then face judicial review, as is the case with other laws and provision.

However, the earlier decision provided precedent for Monday’s mandate forbidding initiative activists from even circulating their proposal. The court cited the earlier case (In re Initiative Petition No. 349, State Question 642, 1992 OK 122 par 16, 838 P.2d 1.8.), which asserted “[a] pre-submission determination of the constitutionality of [an] initiative petition is appropriate and necessary where the proposal is facially unconstitutional and is justified when a costly and futile election may be avoided.”

As a result of subsequent statutory enactments, the legal sufficiency of an initiative “must now be heard … in advance of a challenge to the numerical sufficiency of the initiative petition.”

The state court contended today the measure is “clearly unconstitutional,” citing Planned Parenthood v. Casey, 505 U.S. 833 (1992), a U.S. Supreme Court decision. The state court concluded the initiative petition is “void on its face and it is hereby ordered stricken.”

Advocates had continued the initiative met standards set in the 1989 Webster decision from the U.S. Supreme Court.

Monday’s ruling was unanimous and was signed by Chief Justice Steven Taylor.

The constitutional initiative is distinguishable from a proposed statutory assertion of personhood for unborn children. As a result of a decision made in the House Republican caucus, that measure was pulled from consideration in the Oklahoma House chamber two weeks ago. Last week, supporters tried to bring the matter to the floor, but the effort was ruled out of order.

Governor Fallin still wants “significant” tax cut, Steele seconds the motion, Democrats demur

Tue, 01 May 2012 15:56:00 GMT

On Monday (April 30), Oklahoma Governor Mary Fallin strongly restated her support for what she termed “significant income tax reduction” this year.

Last week in a meeting with reporters and again in a commentary for The Oklahoman on Sunday (April 29), Speaker of the House Kris Steele appeared to agree with the state’s chief executive – although he remained reluctant to name a percentage reduction he thinks is most likely.

In a statement sent to CapitolBeatOK and other news organizations, Fallin said: “Oklahoma families need and deserve a significant income tax reduction. Cutting taxes will not only allow our citizens to keep more of their hard earned money, it will also make Oklahoma a more competitive state to do business in and will help to create more and better jobs.

“Pursuing income tax cuts and tax simplification continue to be a priority of mine as I work with lawmakers to enact policies that will help to grow Oklahoma’s economy.

“Earlier this year, I proposed the ‘Oklahoma Tax Reduction and Simplification Act,’ a bold plan to dramatically cut taxes, reduce the total number of tax brackets from seven to three, and set the stage for the gradual elimination of the income tax.

“That plan is one of several tax-cut plans proposed this year and still being considered by the Legislature. While I do not expect my plan to be rubber-stamped by legislators, I do expect them to continue to pursue the kind of tax reduction and simplification that we have been working on all legislative session.

“Moving forward, I continue to be committed to a significant tax cut for as many Oklahomans as possible. I continue to support and advocate for a simplification of the tax code that includes both the elimination of underperforming tax credits and an overall reduction in the total number of tax brackets. Finally, I will continue to fight for a plan that includes multiple year reductions in the income tax, where cuts are tied to revenue growth triggers.”

In his Sunday commentary, Steele chided “tax consumers and other tax-reduction opponents who've falsely cast the current income tax reduction discussion as some sort of reckless Republican crusade.”

He said opposition to reform of tax credits and some incentive programs led Republicans to scale back hopes for a large income tax cut, but he predicted “the personal income tax will continue decreasing in the same gradual manner it has for nearly 15 years.”

In his weekly interaction with members of the Capitol press corps, Speaker Steele observed two legislative vehicles remain alive, including state Rep. Leslie Osborn’s bill (House Bill 3038) to put the state on a glide path of elimination of the unpopular levy.

Steele said Governor Fallin’s preferred bill, House Bill 3061, which he has co-sponsored with Senate President Pro Tem Brian Bingman, is likely to be the repository for the final tax reduction measure, now in negotiation.

Steele used words like “major” and “significant” to describe what he thinks will emerge from negotiations, but he laughed and would not affirm suggestions that a reduction of “as much as 1.7 percent” could emerge.

Meanwhile, House Democrats remain strongly opposed to talk of an income tax phase out and/or major reductions.

House Minority Leader Scott Inman of Del City contends “Elimination or reduction of the state income tax will necessitate increased sales and property taxes, just as has been done in the state of Texas. This will hurt those who can least afford it.”

Along with Inman, state Rep. James Lockhart of Heavener has asserted an income tax phase out would lead to higher taxes on sales and property. He also said in a Thursday press conference that Oklahoma would follow the path of Texas (where there is no income tax) toward deficit spending.

Rep. Mike Brown of Tahlequah also opposes a cut, maintaining lower income taxes would benefit only upper income Oklahomans.

Golden Years a Thing of the Past?

Tue, 01 May 2012 16:03:00 GMT

To The Editor:

Social Security was created in 1935, but it was another 65 years before people at full retirement age could work and collect Social Security benefits at the same time. The change came when President Bill Clinton signed the Senior Citizens' Freedom to Work Act of 2000. Today, this legislation is a necessity for most senior citizens, because thousands of baby boomers turn 65 on a daily basis and they are faced with many challenges.

Each month seniors are having a hard time making ends meet - and that needs to change. The skyrocketing cost of living forces most seniors to continue working well into their golden years just to survive. Instead of living out these years in peaceful retirement, seniors are being forced to choose between purchasing food, medicine or fuel for their car.

They have taught in our schools, fought our wars, protected our communities, nursed our sick and made countless contributions to our state.

We have a moral responsibility to take care of our elders, which includes protecting funding for vital programs and services such as nutrition programs, transportation, adult day services and quality nursing home care.

Currently, 9.8% of Oklahoma’s seniors are living in poverty, and Oklahoma is eighth in the nation in the number of seniors who have a disability.

Vice-President Hubert Humphrey once said, “The moral test of government is how we treat those who are in the twilight of their lives.”

Healthcare costs continue to rise as the baby boomer generation moves into retirement. Medicare and Medicaid costs continue to be a drain on state and federal budgets. Yet, somehow the baby boomer crisis is not becoming a front-page issue. The challenges that retirement creates are unlike any our state and nation has ever faced. For the first time since the end of World War II retiring citizens are faced with a decreasing standard of living.

This year, Oklahoma’s budget does not pay down over a billion dollars of our state debt— nor does it put us on track to be debt-free by the end of this decade. In fact, this year’s budget increases Oklahoma’s debt through increased spending and bond proposals. Several proposed plans concerning the personal income tax will increase deficit spending and raise taxes for most Oklahomans, including senior citizens. Eliminating or cutting the income tax would also create pressure to raise local property taxes and to limit property tax exemptions that benefit senior homeowners. In Texas, property taxes are almost three times higher per capita than in Oklahoma, and as a result, many Texas seniors are forced to sell their homes as they move into retirement, they simply can’t afford the property taxes.

These income tax proposals also fail to account for major upcoming challenges our state faces. I would prefer a fiscally conservative approach that takes into account the challenges of retiring baby boomers, our crumbling infrastructure and the billions of debt our state owes. If we choose wisely, we can invest in the people of our state and properly take care of our seniors in their time of need. I fear that these pending tax cuts will inevitably lead to record deficit-spending and years of debt passed onto future generations of Oklahomans.

If we act with prudence we can invest more in our future and provide a greater standard of living to those who have worked hard their entire lives. We can bring greater opportunities for prosperity, and not just for senior citizens, but all Oklahomans.

State Representative James Lockhart

Editor's Note: A Democrat, James Lockhart lives near Heavener with his family and represents House District 3.

Analysis: Romney can find comfort, and Obama concern, in Resurgent Republic's data

Sun, 13 May 2012 13:51:00 GMT

Presidential elections are not horse races, although many of us in journalism tend to treat them that way. Flesh and blood voters make decisions for complex and personal reasons, which explains why Red States can go strongly Republican in presidential elections while electing Democratic Senators or Representatives or governors. The converse is true for Democrats, of course, especially in Obama-leaning states that have lately been electing Republican governors.

A group called “Resurgent Republic” has sponsored focus groups and opinion analyses this year, and is reaching some conclusions that could mean incumbent President Barack Obama will have a hard time gaining a second term. That doesn't mean his mission is impossible, but the president's support has weakened among a wide range of key support constituencies.

In a release detailing its “summary memo,” the “resurgent” group said, “Blue Collar Catholics overwhelmingly point to personal fiscal and pocketbook concerns in explaining their negative outlook on the direction of the country and health of the economy, according to the final memo in a series of focus group studies unveiled [April 26] as part of Resurgent Republic’s Target Voter Series. While they moderately support President Obama, these working class voters are not strongly tied to him and don’t believe his policies have made things better.”

The group, which is guided by former Mississippi Governor Haley Barbour, a Republican, sponsored a four focus group among working class Catholics in Cleveland, Ohio and Pittsburgh, Pennsylvania. The people who participated “all voted for President Obama in 2008, but are undecided on the generic presidential ballot today.”

The work done by McLaughlin & Associates studied Catholic blue collar voters who were “split between those whose religious beliefs are culturally based (participants in Cleveland) and regular churchgoers (participants in Pittsburgh). Not surprisingly these voters tend to lean left. Some had union ties and others support public sector involvement in social justice programs, especially the voters in Pittsburgh. The participants also strongly identify as working class. They did not have a college degree, and the annual household income for the majority of participants was less than $60,000.”

According to John McLaughlin, who led the research, while those whose views were examined in depth “lean left, but they are not strongly tied to the President and are likely up for grabs this November. “Whoever appeals to this target demographic will do so by connecting with their personal sense of suffering and the issues they care about, primarily their desire for quality, family-supporting jobs.”

The results are of some interest because President Obama's press to compel religious institutions, including Church-related hospitals and other care-giving groups, to provide access to abortifacients through insurance programs. That might be expected to be a primary focus for Catholic “blue collars,” but McLaughlin's analysis indicates that at least in Ohio and Pennsylvania, Catholic working people are, primarily, fretting over the same economic concerns as everyone else.

Resurgent Republic's analysis continued, “These voters feel personally and severely affected by the economic downturn and their primary concern is their own economic well-being. They hold a pessimistic outlook on their personal financial situation and they view the national economy as dismal. Everything from the price of gas, unemployment, job insecurity, cost of health care, cost of college and personal debt contribute to their pessimism on the economy and political environment.”

Barbour commented, “There was hardly any mention of positive economic indicators, like the rising stock market or any improvement in the unemployment rate. Nearly all of these voters feel financially insecure, and even three participants said they are going to lose their job in the coming weeks.” Like many other Americans, these voters believe the true unemployment rate is much higher than what is officially reported.

Those surveyed say they have made significant reductions in personal spending during the last few years, are self-described as “hardworking” and believe both that those with lower incomes are taking advantage of welfare, and, further, they “see the rich as not contributing their fair share of taxes.”

Additionally, according to the analysis, “Among Blue Collar Catholics, President Obama increasingly owns the deficit and debt.”

The Target Voter series reached a total of 24 focus groups consisting of “Obama Independents who are undecided on the generic presidential ballot. Nine other states (beyond Ohio and Pennsylvania) were studied among six demographic groups, described as Suburban Women, Young Voters, Seniors, Independents, Hispanics, and Blue Collar Catholics.

The analysis from the last several month's of work is available online at www.resurgentrepublic.com.

Resurgent Republic hosted a breakfast meeting with reporters and others at the National Press Club in Washington, D.C. last week.

A sketch of some results follows, focused on these groups and locations: Suburban Women (Wal-Mart Women and working college graduates) in Des Moines, Iowa and Manchester, New Hampshire; Young Voters (ages 23 to 30) in Raleigh, North Carolina and Columbus, Ohio; Seniors (ages 65 and older) in Tampa, Florida and Grand Rapids, Michigan; Independents in Denver, Colorado and Richmond, Virginia; Hispanics (Spanish-preferred and English-bilingual) in Albuquerque, New Mexico and Las Vegas, Nevada; and the work sketched above among Blue Collar Catholics in Cleveland, Ohio and Pittsburgh, Pennsylvania.

Presenters at the D.C. Meeting included Governor Barbour, McLaughlin, Whit Ayres (Resurgent Republic Board Member, and President, North Star Opinion Research); Ed Goeas (National Survey Research Advisory Board, and President/CEO, The Tarrance Group); and Jan van Lohuizen, National Survey Research Advisory Board and President of Voter/Consumer Research).

McLaughlin was a key player in the work, but several other opinion researchers have participated in the focus group research. In each set of analysis, the focus was on voters who backed President Obama in 2008, but at the time of the focus group sessions were undecided.

Among other conclusions Resurgent Republic has now disclosed were those from four focus groups in Denver and Richmond, where Public Opinion Strategies conducted the sessions (which were divided by gender). For those voters, the analysts say, “President Obama’s likeability is not enough to win back and hold this voting block.” This research was first shared with CapitolBeatOK in early April.

“These Obama Independents still like the President, even if they moderately disapprove of the job he is doing. Yet the President’s personal likeability does not prevent many of these Independents from concluding that he has not delivered according to their expectations and things are not getting better,” read a memo from Glen Bolger, a member of the “Resurgent” board, and Gov. Barbour. They said, “President Obama remains in a precarious position with these voters when their attention is focused on his record.”

Obama's support among independents, whom he won 52 percent to 44 percent in 2008, began to fray in spring 2009, according to the analysis. Many of them broke against the president's party in the 2010 congressional elections. Resurgent Republic's narrative concludes, “These Independents remain mostly negative about the economy, describing it as 'poor,' 'ailing,' 'sad,' and 'erratic.' There’s also a growing anger and frustration with the perceived abuse of unemployment benefits, in particular gaming the government benefit system while they feel like they are personally working harder than before. On energy President Obama’s decision to delay the Keystone XL pipeline is perceived as beholden to environmental groups, according to these voters. And discussion of Solyndra, while not as widely known among these groups, remakes President Obama as 'just another politician' when they realize how the loan was approved, the political connections involved, and the loss of more than half billion taxpayer dollars.”

By this point in the political calendar, numerous studies of popular feelings have begun to conclude President Obama has weakened considerably among the young voters who backed him in 2008. [The president garnered 66 percent backing among 18-to-29 year olds in 2008.] Analysis from Resurgent Republic first unveiled in late March ratifies findings about the president's challenges this year. In fact, the group says, “young voters today tend to be the most negative about the direction of the country.” At least, that was case the four focus groups among “Generation-Y” voters in Raleigh and Columbus.

Participating voters were between ages 23 and 30, self-identified as independents who voted for Obama in 2008, but presently undecided. In this case, the work was performed by the Tarrance Group. Ed Goes and Ed Gillespie wrote in their summary, “If these groups are representative of this demographic at large, it will be a tall task to counter the disillusionment many feel due to a pattern of over-promising and under-delivering Young voters’ ongoing frustration does not mean they will outright abandon Obama … but it should call into question their reliability to turnout for him this November barring any changes.”

In recent opinion polls, more than two-thirds the 18-29 year old cadre surveyed believe the country is on the “wrong track.”

In a more dated set of survey data, released in late January, President Obama was “underperforming” among Hispanic voters in Florida. Resurgent Republic released that data in coordination with the Hispanic Leadership Network’s Inspiring Action Conference. In his analysis then, Gillespie said Obama would be “on the defensive” in the Sunshine State, including among many Hispanic voters.

While Republicans face serious difficulties among many parts of the national Hispanic population, there is appeal to these voters in Republican advocacy of education reform (including school choice, teacher accountability) and other issues. Hispanic voters in Florida, the focus group work found, give plurality support to merit pay programs.

An outright majority of those voters, the analysis concludes, believe federal spending is too high, and echo the “wrong track” numbers by 60-27 percent. The state's Hispanic voters also backed voter ID requirements. This survey of 500 Hispanic voters was conducted in mid-January.

Earlier this year, President Obama came to Oklahoma, a state he is all-but-certain to lose in November, to tout an “all-of-the-above” energy strategy. It might have softened some antagonism toward the chief executive in the Sooner State, but likely had its greatest impact outside our borders.

Mitt Romney, now on his way to the Republican nomination, will visit Oklahoma City next week seeking campaign contributions, including from leaders of the energy industry the president began to target anew just days after his trip to Oklahoma. Romney is likely to perform well in the Sooner State when November rolls around. Every demographic group studied in the Resurgent Republic analysis has its equivalent in Oklahoma – providing even more reasons for optimism about the Grand Old Party's prospects here in the general election.

To put it mildly, in the big picture, Romney can find some comfort from the analysis coming from Resurgent Republic.

Commentary: Louisiana’s Bobby Jindal emerges as education reform leader

Thu, 26 Apr 2012 21:16:00 GMT

The week before last, Louisiana Governor Bobby Jindal signed into law three bills that were passed by the Louisiana legislature at his urging – measures that may help transform the educational system in that state.

House Bill 974 mandates that certain school districts in that state set specific performance targets to improve student achievement.

It further requires that the school districts in question delegate to superintendents and principals regarding the hiring and retaining of teachers based on teacher performance rather than years of service. The new law mandates that teacher tenure be earned at those school districts after five years in which the individual teacher has had good ratings based on the academic performance of the students he or she has taught.

Another new law, House Bill 976, expands school choice for the parents of students in several ways. It includes a provision in which schools in which a majority of students enrolled have had three years of failing scores can be converted into a charter school -- if at least 51 percent of the parents of the students enrolled sign a petition requesting that it become a charter school. It also creates three additional ways in which a charter school can be founded, and streamlines the process by which such schools are approved by the state.

Louisiana’s H.B. 976 further permits students to have access to courses that are not offered at the school that he or she is enrolled in by creating a new entity that will offer individual courses to students in both private and public schools .

Senate Bill 581 establishes a coordinated early childhood system that will seek to insure that children will be prepared for kindergarten and also set performance targets for children ages three to four. That system will be in place by July 1, 2013, and will include a statewide definition of kindergarten readiness. It will also implement a uniform assessment and accountabilities system for publicly funded pre-school programs that will include letter grades.

The new law further mandates that all Head Start programs in Louisiana will participate in that system and be licensed by it.

The Louisiana Legislature’s willingness to enact these measures may have been based in part on the performance of the charter schools that were founded in New Orleans after Hurricane Katrina devastated that city in 2005.

The public school system in New Orleans was unable to function immediately after Katrina due to the damages done to many schools and the absence of teachers who had fled the area as a result of the hurricane. Several charter schools soon were opened as a result. Many of those schools rather quickly had students who had previously done poorly performing at or above grade level.

Soon, many community leaders in New Orleans who had been publicly skeptical about charter schools became supporters of the institutions.

When he signed the laws into effect, Jindal spoke of how those new provisions will give greater educational opportunities to Louisiana’s children -- and said that he believed that they may serve as a model for other states that are trying to improve their educational systems.

The Louisiana Governor’s leadership on the issue of education is another way in which he is becoming a national political figure.

Editor’s Note: William F. O’Brien is an independent writer based in Oklahoma City. He writes regularly for The City Sentinel newspaper; this is his second report for CapitolBeatOK.

Blatt battles income tax reductions, builds Oklahoma Policy Institute

Sun, 29 Apr 2012 17:38:00 GMT

Because Oklahoma does not have enough college graduates, and faces challenges of crumbling infrastructure and abysmal public health outcomes – among other issues – David Blatt of the Oklahoma Policy Institute contends the state should not reduce state income taxes, let alone pursue elimination of the levy.

Blatt made his case against a tax cut and for restoration of government spending in a morning briefing for supporters of his group. The event was held at the Faculty House, a few blocks south of the state Capitol in Oklahoma City.

Blatt pointed to economic development specialists who do not list income tax burdens as important factors in business relocation decisions. He said more significant factors include a high quality educational system, functioning and well-managed infrastructure (with an emphasis on roads and bridges), public safety and security (law enforcement), health care and health outcomes, and care for the most vulnerable persons in the state.

The Tulsa-based analyst said during the Great Recession, “state revenues got hammered” – leading to an extended series of agency budget cuts and a jump in unemployment. Now that that state has completed nearly two years of revenue expansion, most growth revenue is being devoted to filling in revenue that helped in the last three years – federal stimulus funds, Rainy Day Funds and other one- or two-time gap-fillers.

Although the state is doing much better than most, appropriated revenues are about 7 ½ percent below what they were three years ago – and some agencies have absorbed 20 percent reductions in appropriations, Blatt said.

The OK Policy director said he believed most legislators and state officials want to protect core services (which amount to about 90 percent of government spending, spread across 10 agencies). Although, “we are definitely seeing a rebound” in manufacturing job growth, job creation and other measures of economic success, many challenges remain.

Blatt pointed to acceleration in projected costs for delayed payment of oil and gas tax credits (first estimated at $150 million over three years, but now projected at $297 million) as an example of commitments that will eat up revenue growth. His bottom line was that despite current tax revenue growth, state government will at best hold its own – filling in those non-recurring revenues but not seeing much real growth in available money.

Continuing his exposition of anti-tax-cut ideas, Blatt said the state’s structural debt is such that tax cuts are unrealistic. He termed income tax phase out proposals as “intellectually dishonest and fiscally irresponsible.” He asserted, “The numbers don’t add up. You can’t do away with the largest state government income source and close the gap.” He predicted enactment of an income tax phase out would mean property taxes or sales taxes would significantly increase.

Blatt asserted such tax cuts would, in any case, not help the state economy, adding “it’s not right to prioritize tax cuts over human needs.” He stressed that although President Ronald Reagan cut income taxes in 1981, he subsequently raised other taxes.

The state’s constitutional stricture known as State Question 640 – requiring a popular vote for any future tax hikes – means the state has a “one-way ratchet” on taxes. He says taxes, once eliminated, won’t return: “If you break this, you can’t fix it.” He said this distinguishes the situation facing Oklahoma from that Reagan guided in the 1980s.

Blatt expressed relief that what he deemed “the most radical” tax cut ideas seem to have lost momentum over the last two months, but said he hoped that lawmakers would decide not to cut income taxes at all – instead directing resources to “investment” in the state priorities he identified.

Since an early 2012 burst of pro-tax-cut enthusiasm, OK Policy has pressed – with policy papers, an afternoon seminar of economists early this month, speeches such as at Thursday’s event, and creation of a coalition called “Together Oklahoma,” among other steps – to oppose momentum for tax cuts in general, and for income tax reduction, in particular.

Oklahoma ranked 18th best in group’s 2012 “business tax index”

Thu, 26 Apr 2012 22:36:00 GMT

A small business council has listed Oklahoma 18th best among the 50 states (and the District of Columbia) assessed on a variety of business tax policy questions.

The Small Business & Entrepreneurship Council (SBE Council) says its mission is to focus on “the importance of entrepreneurship to job creation, innovation, economic growth and U.S. competitiveness.” These criteria drive its rankings (and blending) of the impact of 18 aspects of state tax policy on small business formation, growth and sustainability.

The “Business Tax Index 2012” is the group’s conclusion about “best to worst state tax systems for entrepreneurship and small business.”

As sketched in the preface of the SBE Council’s new report, the 18 different tax measures for the group’s analysis are: “1) state’s top personal income tax rate, 2) state’s top individual capital gains tax rate, 3) state’s top corporate income tax rate, 4) state’s top corporate capital gains tax rate, 5) any added income tax on S-Corporations, 6) whether or not the state imposes an alternative minimum tax on individuals, 7) whether or not the state imposes an alternative minimum tax on corporations, 8) whether or not the state’s personal income tax brackets are indexed for inflation, 9) property taxes, 10) consumption-based taxes (i.e., sales, gross receipts and excise taxes), 11) whether or not the state imposes a death tax, 12) unemployment taxes, 13) whether or not the state has a tax limitation mechanism, 14) whether or not the state imposes an Internet access tax, 15) ‘Amazon’ taxes, 16) gas tax, 17) diesel tax, and 18) wireless taxes.

Oklahoma’s overall ranking of 18th is distilled from the group’s assessment across all 18 of the foregoing categories. Rankings for the Sooner State in major categories were:

· 22nd best in top personal income tax rates (Note: The top 9 states in this category all have zero personal income taxes)

· 25th in top capitol gain tax rates

· 16th in top corporate income tax rates

· 18th in top corporate capital gains tax rates

· Third in state and local property tax rates

· 35th in state and local sales, gross receipts and excise taxes

· 40th in adjusted unemployment taxes

· Fifth in state gas taxes (i.e. “taxes on motor fuels”)

· Third in state diesel taxes

· 34th in wireless taxes

While Oklahoma’s blended ranking is enviable in comparison to many other states – and improved after the state’s comparatively strong performance during the “Great Recession” -- the 18th place finding from the SBE Council might boost Oklahoma Governor Mary Fallin’s contention that further changes to tax policy could help the state in economic development projects.

According to the SBE Council:

“The 15 Best State Tax Systems are: 1) South Dakota, 2) Texas, 3) Nevada, 4) Wyoming, 5) Washington, 6) Florida, 7) Alaska, 8) Alabama, 9) Ohio, 10) Colorado, 11) Mississippi, 12) Michigan, 13) South Carolina, 14) Tennessee, and 15) Missouri.

“The 15 Worst State Tax Systems are: 37) Nebraska, 38) North Carolina, 39) Illinois, 40) Oregon, 41) Rhode Island, 42) Connecticut, 43) Hawaii, 44) Vermont, 45) California, 46) Maine, 47) Iowa, 48) New York, 49) New Jersey, 50) Minnesota, and 51) District of Columbia.”

Oklahoma is listed in the new study’s preface as one of seven states that recently have “made some positive steps forward in providing tax relief.” The other states touted for recent progress were Indiana, Arizona, Maine, Michigan, North Dakota and Delaware.

Keeping in mind the ranks are from best (1) to worst (51), the blended rankings of neighboring states, in clockwise order of geographical location starting at the north, are: Kansas (29), Missouri (15), Arkansas (23), Louisiana (22), Texas (2), New Mexico (24) and Colorado (10).

The Small Business and Entrepreneurship Council (SBE Council) is a 501 c(4) advocacy, research, training and networking organization, focused on “protecting small business and promoting entrepreneurship.”

Chief economist for SBE Council is Raymond J. Keating, a teacher, a newspaper columnist who writings have appeared in newspapers like The Washington Post, The Wall Street Journal, The New York Times and many others – and, in recent years, a blog writer. Keating’s books include "U.S. by the Numbers: What’s Left, Right and Wrong with America State by State" (2000).

Doerflinger asserts “Oklahoma is more than OK”

Thu, 26 Apr 2012 22:43:00 GMT

Secretary of Finance Preston Doerflinger, responding to concerns over low natural gas prices, said Thursday (April 26) the Oklahoma economy is still going strong and the state revenue picture continues to look bright for the next fiscal year.

“The easiest thing in the world to sell is doubt and fear, even if there’s little or no basis for it,” Doerflinger said. “As public officials, we have an obligation not to be an alarmist and to be cautious in our assessment of the overall economy and not get bogged down in negativism over one aspect.”

In reflections sent to CapitolBeatOK and other news organizations, Doerflinger continued, “Our assessment, based on key economic indicators such as declining unemployment, rising sales taxes and increased oilfield activity, is that Oklahoma is more than OK as we head toward the 2013 fiscal year, which begins July 1.”

Doerflinger added, “Of course, we are concerned about low natural gas prices and are hoping they will rebound. But we do not anticipate that the natural gas situation will lead to a state budget hole in Fiscal Year 2013, just as it hasn’t caused a revenue problem for the current fiscal year. That’s because the energy industry as a whole is growing as is our entire state economy.

“The vigorous growth in overall collections to the General Revenue Fund has more than made up for lagging natural gas collections. In fact, we’re expecting to end this fiscal year with a surplus that could exceed $300 million.

“We’ve seen record sales tax collections this year, no doubt driven in part by the boom in the oil patch, which has been spurred by enhanced drilling techniques. There’s no reason to expect a slowdown anytime soon as industry experts, economists and the federal government are projecting oil prices will continue to increase in FY-2013, perhaps $10 to $15 per barrel higher than the figure used in our official state estimate.

“The economic activity generated by the upsurge in the oilfields, plus growth in other areas of our economy, should easily offset any revenue loss from declining natural gas tax collections, caused largely by the unusually mild winter weather.”

Snapshots: Personhood foes unite, human trafficking opposed, Chamber cheers intangible protections, Fallin’s powers enhanced

Wed, 25 Apr 2012 23:22:00 GMT

Snapshots of notable events as rhetoric soars in both the House and Senate at the state Capitol:

In coordination with national events, Sarah Hall said, in an email to CapitolBeatOK on Tuesday evening, that a local rally will be held Friday, April 28. Marchers will move from the First Unitarian Church in downtown Oklahoma, beginning at Noon, to start a state Capitol rally at 1 p.m.

* * A bill aiming to combat human trafficking has been signed into law. Co-sponsored by Sen. Josh Brecheen of Coalgate and state Rep. Sally Kern of Oklahoma City, House Bill 2518 takes fresh aim at human trafficking. Kern said, in a statement sent to CapitolBeatOK, “the United States is fertile ground for this inhumane industry. Oklahoma’s location along the I-40 and I-35 corridor makes it a prime location for trafficking people from Mexico and Texas port cities. Hopefully, this new law will make these monsters think twice before trying to prey on our state’s youth.”

Officials with ICE (Immigration and Customs Enforcement) estimate that annually 300,000 American girls in the U.S. are enslaved through trafficking.

Brecheen contends, “Oklahoma’s high rate of poverty, incarceration, domestic abuse, teen pregnancy and drug addiction makes it easy for traffickers to find vulnerable women and children in our state, but we need to strengthen our laws to protect these unsuspecting victims.

“The Thirteenth Amendment to the Constitution prohibits slavery, and we must do all we can to prevent modern day slavery in our local communities, and this bill will help with that effort.”

The bill modifies the legal definition of “human trafficking for commercial sex” to include recruiting, enticing, harboring, maintaining, transporting, providing, purchasing or obtaining, by any means, a minor for commercial sex acts. The act specifies that a minor’s consent to involvement in sex acts cannot be used as defense in judicial proceedings.

Governor Mary Fallin signed the bill, which will take effect on November 1.

* * A group known as “Unite Women” is holding marches and rallies opposed to legislation they deem part of the “war on women.” The organization is opposed a range of policy proposals, including what it calls “anti-choice laws” across the nation, including here in Oklahoma. Impassioned rhetorical clashes over the proposed Personhood bill sparked fresh activism among abortion supporters, feminists and others.

In coordination with national events, Unite Women’s Sarah Hall said, in an email to CapitolBeatOK, that a local rally will be held Friday, April 28. Marchers will move from the First Unitarian Church in downtown Oklahoma, beginning at Noon, to start a state Capitol rally at 1 p.m.

* * When he was still in the Senate as President Pro Temp, Secretary of State Glenn Coffee worked to establish a framework for discussion and eventual resolution of thorny issues of “intangible property” taxation.

Last year, a task force of legislators and private citizens laid out a framework to reverse or limit the effect of a controversial judicial decision allowing taxation of “intangible” assets such as trademarks, copyrights, membership, clients lists, good name and reputation.

The issue has provided a somewhat rare opportunity for diverse elements to agree on an impactful tax policy question. On Wednesday (April 25), the House approved Senate Joint Resolution 52, a ballot question that will let voters decide (on the November election) a proposal to prevent taxation of intangible property.

Fred Morgan, president of the State Chamber, applauded the unanimous (89-0) vote on the measure, saying in a statement sent to CapitolBeatOK:

“I cannot stress enough how important the passage of this legislation is to businesses in Oklahoma. This is a complicated subject and I would like to thank our state lawmakers for taking the time to study the issue and come up with a solution that prevents the largest tax increase on Oklahoma businesses in state history.

“With this unanimous vote today, and the previous vote in the Senate, lawmakers have sent a strong message to the state and nation that the Oklahoma Legislature is committed to continuing the momentum started last session in making Oklahoma an unequaled state for business growth and opportunity.”

* * Tuesday, Gov. Fallin signed into law House Bill 2834, giving the state’s chief executive the option to change her or his cabinet at any time during a term of office. This is a shift away from current law, which puts all Cabinet members on a four-year term. The new provisions will retain a requirement for state Senate confirmation of Cabinet officers.

Fallin said the law, by state Rep. Scott Martin of Norman and Sen. Rick Brinkley of Owasso “will help me as well as future governors to call on individuals with appropriate expertise to serve over the course of multiple-year terms. I am thankful to the Legislature for sending it to my desk, and happy to sign it into law.”

As he seeks a third term, Senator Clark Jolley of Edmond pushing for significant tax cut

Tue, 24 Apr 2012 07:50:00 GMT

Republican state Sen. Clark Jolley of Edmond, the incumbent in District 41, is seeking reelection. He is Senate sponsor of the version of income tax reduction partnered with legislation from the state House to not only reduce tax rates, but put the unpopular levy on a glide path to elimination.

On Friday, Jolley said, “We were very hopeful to be able to have significant tax reform. Obviously, that's very difficult because everybody that believes that they need tax resources are lobbying the Capitol hard. Governor Fallin is staying true in saying she wants to keep a tax cut, I'm staying true to that.”

“We're going to try our best to make sure we don't have some minor little reduction, but that we see significant savings to Oklahoma taxpayers by not spending every dollar and letting them put money back into our pockets. We're going to work our best to get it done.”

In an interview with CapitolBeatOK – conducted on another windy day in Edmond, in this case at the beautiful new Integris Hospital facility – Jolley explained his reasons for seeking what would be his third term at the Capitol.

He reflected, “I think we're done a good job in Oklahoma of not being like the federal government. Governor Mary Fallin and I are trying to do everything we can to bring jobs and grow our economy, to fight against the federal health care law that we call 'ObamaCare,' and to try to make sure that our citizens are protected from the federal government's overreach.

“We've got a conservative record of accomplishments in Oklahoma. If you take a look at what I've been able to do in the state Legislature over the last seven and a half years, I think you'll see that we talk about as Republicans reducing the size and scope of state government – I've actually done that. I've actually reduced the number of state agencies, I've carried legislation that has saved the state millions upon millions of dollars.

“Look at IT [information technology] consolidation, that is this year going to save almost $10 million just in one of the first years of implementation. It's going to wind up saving the state tens of millions of dollars that won't have to be spent, that won't have to be added to the state budget.

“We've got a conservative record, of being not only fiscally conservative but also promoting good social values. I've passed landmark pro-life legislation. There's more that needs to be done to make sure that the weakest and those … among us that need the most help are protected.”

Jolley continued, “We believe in conservative government in Oklahoma, and that's exactly what we have. Mary Fallin is not Barack Obama – thankfully, and quite frankly there aren't many Harry Reid types in the state Senate. There's a few, but they're all liberal Democrats and they're terming out.

We've got a great future ahead of us in Oklahoma; we just need to make sure we stay on track.”

Encouraged to list three key issues in the current session and the years ahead, Jolley responded, “First off, the income tax – and what we're seeing come out of Kansas and Missouri, where Kansas and Missouri are almost getting ready to make Oklahoma a sandwich between Texas and themselves, by having their discussions about significantly reducing if not flat out eliminating their income taxes.

“If that were to happen, Oklahoma would be sitting in the middle of no income tax to the south, and no income taxes to the north or northeast. That's not doable for Oklahoma. We've got to make sure we're competitive economically, to make sure that our taxes are as low as they possibly can be so that we can build both growth and investment in our state. That is a major factor we have to address.”

The second key issue consisted of one word: “Water. We've got to make sure that we protect our water interests in Oklahoma. Water interests here in Oklahoma are the reason why we're able to grow – and Texas is desperately wanting it.

“We have interests here within the state that are trying to claim that the water belongs to them or they should be able to control it. Governor Fallin is working very hard, and I'm supporting her as well as [Attorney General Scott] Pruitt in making sure that Oklahoma defends its water rights, and that we're able to plan for the next 50 to 100 years of state growth.

“Lastly, we've got to keep a vigilant eye on the intrusion of the federal government in all areas. We've got to make sure that we're appropriately responding.

“I applaud General Pruitt efforts to establish the Office of Federalism, to make sure that the federal government keeps in check. Whether it's Medicaid, or whether it's education or whether it's any other area – transportation – we've got to make sure that we're fighting against federal government intrusion, and keep loyal and keep true to what Oklahomans do.

“That's why I've supported things like allowing Oklahoma to develop its own health care marketplace, for Oklahoma to its own block grants, which was applauded as a conservative alternative to ObamaCare by a lot of conservative institutions. Those are the types of things we need to be doing in Oklahoma.”

American Legislative Exchange Council counters attacks from Common Cause

Tue, 24 Apr 2012 08:01:00 GMT

On behalf of the American Legislative Exchange Council (ALEC), Washington, D.C. attorney Alan P. Dye has issued a formal statement countering what ALEC called a “frivolous IRS complaint” filed by Common Cause.

Dye, a veteran attorney for tax-exempt organizations in the nation’s capital, said in the statement sent to CapitolBeatOK: “The attacks on the American Legislative Exchange Council are based on patently false claims being made by liberal front groups that differ with ALEC on philosophical terms.

“The current complaint mostly ignores applicable law and distorts what it does not ignore. After three decades of counseling clients on nonprofit and federal disclosure requirements, it’s clear to me that this is a tired campaign to abuse the legal system, distort the facts and tarnish the reputation of ideological foes.

“Without question, Common Cause is a partisan front group masquerading as an ethics watchdog.”

Common Cause is asserting ALEC is flouting federal tax laws by spending money to lobby for bills in state Legislatures. The filing asserts that ALEC is a vehicle for corporate lobbying, assailing ALEC for talking points, issue alerts, tracking documents and other actions, including sponsorship of gatherings for state election officials.

Phillips and Cohen LLP, a self-described “whistleblower law firm” has organized the complaints against ALEC on behalf of Common Cause. A formal complaint was filed in Washington, D.C. on Monday (April 23).

The attorneys want an IRS audit of ALEC, payment of back taxes and penalties.

Common Cause supports taxpayer funding of elections, and has strongly opposed the “Citizens United” case and other precedents expanding protections for political speech.

Editor's Notebook: Parmley's problems, Gerhart's fall from grace

Tue, 24 Apr 2012 18:51:00 GMT

From an editor's notebook, news items touching controversy within both political parties, as former Oklahoma Democratic Party Chairman Jay Parmley is wrapped in a whirlwind and Al Gerhart's fall from grace in the Ron Paul campaign.

* * *

The Daily Caller has covered the troubles facing Parmley, until recently executive director of the North Carolina Democratic Party, and for several years chairman and ED of the Oklahoma Democrats.

The newest allegations come from an Oklahoma City woman who says that Parmley transmitted HIV to her during a three-year relationship. In addition to his work for the Democratic Party, Parmley worked for some time as an instructor at Oklahoma City Community College, where he met the young woman. Parmley was chair of the state Democrats from spring 2001 to spring 2005, party officials told CapitolBeatOK.

North Carolina Democrats are still reeling over earlier filing of sexual harrassment charges against Parmley by Adriadn Ortega, who formerly worked in communications for the party.

Mike McCarville, a semi-retired radio reporter who still regularly prepares Oklahoma's leading source of aggregation and some original reports for political junkies, has monitored the Parmley story as it reached national intensity in recent days.

* * *

Speaking of McCarville, he posted a note yesterday pointing to the apparent end of Gerhart's role as a key coordinator for Ron Paul forces in Oklahoma. McCarville wrote, “(S)ources say Gerhart was removed when slates of Republican district convention delegates he personally chose abandoned him because of his roughshod treatment of friend and foe alike, especially longtime GOP officials and workers. It’s been no secret that many of Paul’s supporters had lost confidence in Gerhart and distanced themselves from him as much as they could.”

McCarville said calls to the national Paul campaign have not been returned, but Paul supporters in Oklahoma have said an email confirming Gerhart's replacement has been sent to some activists. Gerhart's style of attacking fellow conservatives had eroded his support among activists.

Several analysts, including CapitolBeatOK, believe he contributed to the weaker-than-expected (under 10 percent) showing for the Texas Republican in this year's GOP presidential primary.

Despite the Gerhart controversy and less than 10 percent in the primary, the libertarian-leaning Paul supporters have done well in precinct, county and district Republican party meetings this year.

As controversy mounts, Oklahoma City woman hires attorney to field questions about relationship with Jay Parmley

Wed, 25 Apr 2012 16:44:00 GMT

OKLAHOMA CITY -- A City woman who says a high-ranking Democratic operative transmitted HIV to her during a three-year relationship has retained a Mustang attorney to handle communications for her henceforward, CapitolBeatOK has learned.

Responding to an interview requested this morning, Rebecca Burgin instructed her attorney to contact this news organization.

Previously, Burgin had told The Daily Caller she is worried Jay Parmley “may have done to someone else what he did to her.”

Parmley resigned as executive director of the North Carolina Democratic Party on April 15. His resignation came after controversy had focused on sexual harassment allegations against him by a former party employee, a young man who worked in communications.

Some of the strongest criticisms of Parmley and of the North Carolina party’s handling of the situation had come from within Democratic and progressive circles. The party’s gubernatorial nominee applauded Parmley’s decision to resign and said the state party chairman who defended him and assailed critics should also resign.

Boyle’s story for The Daily Caller (on April 13) said the allegations from the young man in North Carolina were made in December.

Matthew Boyle of The Daily Caller reported yesterday that Burgin said she and Jay Parmley began dating in January 2004, and that their relationship lasted three years. In that time frame, Parmley was both executive director of the Oklahoma Democratic party and a part-time teacher at Oklahoma City Community College.

Burgin and Parmley began dating when she was 20. She took his class in American Government at OCCC.

Parmley was director of the Oklahoma Democratic party from spring 2001 to spring 2005, party officials told CapitolBeatOK this morning.

Michael D. Denton, Burgin’s lawyer, wrote CapitolBeatOK to say he had been retained “to assist her in dealing with this situation. I would be most appreciative if you would direct any future communications intended for Rebecca as they deal with

Jay Parmley and his employer and this situation. Ms. Burgin wants me to field all requests for information, interviews, etc.

“Ms. Burgin is not necessarily interested in discussing this situation further; however, if you have additional questions which were not covered in her interview I would invite you to send them to me via email and I will go over them with her.”

Through Mr. Denton, CapitolBeatOK asked Ms. Burgin these questions:

* Has she considered any legal action or actions against the Oklahoma Democratic Party?

* Has she has considered legal action or actions against Oklahoma City Community College?

* Does she have reason to believe Mr. Parmley behaved in ways that were inappropriate toward other students at OCCC?

CapitolBeatOK also asked Denton to summarize “legal actions against the North Carolina Democratic Party and/or Mr. Parmley.”

Late Tuesday, Denton replied, “I am authorized to tell you that she has retained me solely to advise her, not to pursue legal action against any person or entity. She is not contemplating such legal action.”

In his reports for The Daily Caller, Boyle pointed out that in Oklahoma statutes, Title 21 Section 1192.1 establishes a felony, punishment by up to five years imprisonment, for someone “knowingly engaging in conduct reasonably likely to transfer HIV virus” without a partner’s consent.

Just before 10 a.m. on Tuesday (April 24), CapitolBeatOK submitted to the press office at OCCC a request for information about Parmley’s performance as an educator and his behavior while working there. The school was asked to provide information about his compensation, the length of his time as a teacher, evaluations, student comments or other information.

In response to CapitolBeatOK’s request, Cordell Jordan of OCCC said on Tuesday afternoon, “Jay Parmley was employed as an adjunct professor at OCCC from June 2, 1997 to July 1, 2004. Given the almost 8-year time span since leaving OCCC, it is unknown right now if any additional records are still in possession of OCCC, but OCCC Human Resources is currently going back through old paper records to see if any still exist.”

Jordan said if other records are discovered concerning Parmley’s tenure at OCCC, “I will forward them to you as soon as possible, as you requested.”

Oklahoma Society of Professional Journalists – CapitolBeatOK writers recognized for “enterprise” and special reporting

Sun, 22 Apr 2012 18:23:00 GMT

OKLAHOMA CITY – Writers for CapitolBeatOK won a total of five awards from the Society of Professional Journalists (Oklahoma Pro Chapter) Saturday night (April 21).

Three of the awards came for stories first posted on the website, www.CapitolBeatOK.com. For the second year in a row (and in only its second year of eligibility for recognition), the online news website acquired awards from the group of journalists who work in newspaper, television, radio, online journalism, and for blogs.

A project of the Franklin Center for Government & Public Integrity, CapitolBeatOK won two awards in the online reporting category deemed “enterprise” reporting, or special reports. Another story first posted on CapitolBeatOK won recognition in the newspaper category, as well.

CapitolBeatOK Editor Patrick B. McGuigan won first place awards in both online and newspaper reporting, and a third place award in magazine writing.

McGuigan garnered one first place SPJ award for his online enterprise/special report for CapitolBeatOK, a news story focused on pension reform and entitled, “Is pension reform the crowning achievement of the 2011 legislature?”

McGuigan had previously won widespread recognition for his in-depth reporting on government pension issues, making arcane matters of public finance and accounting accessible to readers.

Special projects writer Stacy Martin of CapitolBeatok won second place honors for online “enterprise” or special report for her story, “OEA keeps generous benefits and pay raises while member face more suffering.”

Additionally, Martin shared a second place newspaper investigative reporting award with McGuigan,for their joint effort entitled “State's largest teacher's union ready to take on school districts.”

In other aspects of the annual competition, McGuigan also won a first place newspaper award in the “entertainment category” for a personal reflection on art works paying tribute to Sacawagewa, the Indian guide for the Lewis & Clark expedition in the Nineteenth century.

McGuigan also won third place in magazine column writing for his tribute to the late NBA and college basketball great, Wayman Tisdale of Tulsa.

A member of the SPJ for more than 15 years, McGuigan has won more than two dozen SPJs in this decade.

Note: Billie Rodely, a member of the Oklahoma Journalism Hall of Fame, writes for CapitolBeatOK.

Oklahomans Embrace Income Tax Cut Some opposition to cutting to 4.75% comes from those thinking it does not go far enough

Fri, 20 Apr 2012 16:32:00 GMT

By a better than two-to-one margin Oklahomans favor cutting the state income tax to 4.75%.

Most significant groups top 50% in their support. It is supported by men (52% favor vs. 25% oppose) and women (51% favor vs. 22% oppose) urban residents (53% favor vs. 24% oppose) and rural denizens (52% favor vs. 24% oppose). Even among those Democrats with a favorable opinion of Barack Obama, 44% favor cutting the incometax while 32% oppose doing so.

In contrast to what is often seen with income taxes, upper income voters in the state do not expand their support as much as one might expect. In fact, a larger percentage of voters making less than $40,000 a year support this cut (53% favor) than is the case for those making more than $80,000 a year (51% favor).

Most swing groups support cutting the income tax to below 5%. These include those currently undecided in an Obama versus Romney presidential contest (54% favor vs. 24% oppose), those undecided on the generic legislative ballot (49% favor vs. 32% oppose) and those Democrats with an unfavorable impression of Obama (55% favor vs. 26% oppose).

Given the huge advantage we expect Republicans to have in the 2012 general election, perhaps more important is how supportive Republican primary voters (56% favor), evangelicals (58% favor) and strong conservatives (54%) are of this measure.

Interestingly, there is not a large partisan difference as Republicans are only slightly more supportive (56% favor vs. 21% oppose) than are registered Democrats (50% favor vs. 27% oppose).

Those who identify themselves as either Tea Party members (50% favor vs. 28% oppose) or Tea Party supporters (57% favor vs. 17% oppose) do not show the unbridled support one might expect. The conclusion should not be that they oppose cutting the income tax, but rather that the cut to 4.75% is not enough.

A closer examination of the data reveals that any Republican facing a primary challenge will have more risk opposing a tax cut than these topline numbers indicate at first glance.

The reason this claim can be made is because conservative groups which constitute a greater percentage of primary voters favor a 10-year phase-out of the state income tax at a more substantial rate than they favor cutting to 4.75%.

For example, 78% of those who consider themselves Tea Party members support total elimination with only 6% opposed. Similarly, 61% of Republican primary voters support elimination – up 5 points in the percentage that support the modest cut. Furthermore, more “strong conservatives” favor a 10-year elimination than favor the cut as is the case with Evangelicals (58% support cutting; 64% support phase-out).

Overall, a slight majority of Oklahomans favor a 10-year phase-out (51% favor vs. 30% oppose). On this aspect, there is a strong relationship between parties as Republicans are very supportive (62% favor vs. 20% oppose) and Democrats are evenly split (41% favor vs. 39% oppose).

On this question, we see the more traditional dynamic we expect on income tax in relationship to income. While those earning under $40,000 a year are supportive (49% favor vs. 30% oppose), among those in households with income in excess of $40,000, support increases to 55% while among those making more than $100,000 a year, support goes to 62% with 40% “strongly” favoring the eventual elimination of the income tax.

Although specific programs were not mentioned, voters also demonstrate a desire to cut the size of government and its services. By margins similar to that in support of the tax cut, voters indicate they believe “Oklahoma government is too big and should be cut” (54% agree vs. 29% disagree) and favor “cutting government programs and services” (57% agree vs. 29% disagree).

Again, when you get into more details, you start to see a wider partisan division as 67% of Republicans favor cutting government programs and services, while only 47% of Democrats hold that view.

Even among Democrats, however, a plurality favors cutting government programs and services. Again, we see the real divide being between those Democrats with an unfavorable impression of the President (60% favor vs. 28% oppose) being much more for cutting than are those with a favorable impression of Obama (34% favor vs. 55% oppose).

Among anti-Obama Democrats there is actually more supportive intensity (50% strongly favor) than among Republicans (40% strongly agree).

When SQ 640 passed more than 20 years ago, some thought Republicans were giving-up an electoral issue. This data reveals that is not the case. Taxes and taxation policy are still hot-button issues for voters. Being for smaller government and less taxation is still a basic tenet of the Republican coalition just as is support for the free-market.

Republicans now in the majority and governing in the state will be well served to remember and acknowledge this sentiment.

Editor’s Note: This analysis is taken from Sooner Survey, Volume 21, Number 1 (April 2012). The original report contains the language of the polling questions, and details on methodology. A nationally recognized pollster, McFerron has worked on political campaigns at every level in America, including, in 2001, two of the most historic referenda in Oklahoma history: the 2001 Right-to-Work campaign, and the MAPS for KIDS drive.

On Farm Bill, Frank Lucas says one thing is certain: “We’ll spend less”

Fri, 20 Apr 2012 15:41:00 GMT

According to U.S. Rep. Frank Lucas of Cheyenne, “The only thing that is certain about the Farm Bill is that the present one expires at the end of September. So, we either have to extend the present bill or write a new Farm Bill.”

In an interview with CapitolBeatOK, the Republican from Oklahoma’s Third Congressional District asserted, “Writing a new Farm Bill means that we’ll spend less, because in the United States House of Representatives this time, we’re going to spend less on everything. That’s just a given.

“With the budgetary problems that we have – the trillion annual dollar deficits, the $15 trillion national debt – we’re going to spend less. So, it’s how much less?

“How do you come up with a bill that spends less and still provides the kind of Farm Bill that everyone across the country, and in all commodity groups, can participate in?

“Sometimes, people forget that this Farm Bill has, over time, evolved to the point where 75 percent of all Farm Bill spending, over the last five-year period, will go to social nutrition programs.

“That leaves the rest for conservation, rural development, commodity title and farm credit. That’s a pretty small slice. So, actually, in some ways it might be even better to describe it as a feeding bill that just happens to raise food.”

Now the “dean” of the Oklahoma congressional delegation (he was first elected in spring of 1994), Lucas continued, “having a conservative United States House, by the definition of the Third District of Oklahoma, a liberal president and a United States Senate – where, under Harry Reid, basically no one is in control – it’s hard to make anything legislatively happen.

“But, I’m working very hard across the aisle in the House, and across-Chamber to craft another comprehensive five year Farm Bill.”

Bi-partisan policy making seems to be under stress and strain in every aspect of work in Congress, yet it is a long-standing tradition in Agricultural policy. Asked about the approach the panel has taken under his chairmanship (which began when Republicans regained control of the U.S. House in 2010), Lucas reflected, “Up until this point, I would say that we’ve done amazingly well.”

He recounted, “In the Super Committee process, reaching across the aisle on the Ag side in the House and in the Senate, we came to an agreement on a bill that would in effect have been a five-year farm bill, with $23 billion in cuts.

“No other committee, not even the Super Committee themselves, could agree on anything. The Ag Committees in the House and Senate did our work in a bipartisan way. But alas, the Super Committee process failed, so we start all over again.”

Lucas continued, “Under the Ryan budget resolution, we’re obligated to come up $33 billion in existing savings, over the next month, in present Farm Bill spending. That’s going to be a tough lift, and it’s going to be hard on comity in the Committee, but we’ll do it.

“Then, we’ll begin to parse the process of crafting a Farm Bill. Ultimately, as I’ve said all along, we’ll spend less, but it’s still going to be a comprehensive Farm Bill. We can get it done, it’s just going to be really, really tough to do.

Switching from commodity pricing issues, CapitolBeatOK asked about the upstream flood control dam “ rehab” program, part of the Conservation Title in the Farm bill.

Lucas explained, “it’s a relatively small portion, but .. a basic infrastructure element inside the Farm Bill.”

Concerning existing earthen dams throughout the American West, he observed, “ The original structures, many of them may end up across the 50-year mark. Without rehab, without addressing the let-down pipes, and the valve works – all things that were designed with the best technology of the ‘40s, ‘50s and ‘60s – then potentially these structures might have to be not only decommissioned but removed.

“By spending a little money on rehab, using modern alloys and mechanical parts works, using different composite parts for let-down pipes, we can extend those structures lives from its present 50-year limit by potentially much as a hundred years.

“That has been one of my crusade issues, working with the conservation districts in Oklahoma and across the country. We’re going to work very hard to make sure that is properly funded in this Farm Bill.”

Lucas pivoted, to stress in rarely-seen passionate terms, his view as a powerful House leader that “all spending is under scrutiny. I mean, in the House, where the focus is on reducing spending, all spending is under scrutiny. Even programs like this that might appear to be beyond question, will have to justified, and defended and fought for.”

Note: Photos provided by Glenn Hightower

Republican Caucus pulls personhood bill from Oklahoma House calendar

Fri, 20 Apr 2012 01:02:00 GMT

Senate Bill 1433 -- a measure important to pro-life activists deemed “the Personhood Bill” -- was pulled from the calendar in the Oklahoma House of Representatives today (Thursday, April 19).

Republican leaders took the measure off the schedule after a Republican Caucus meeting opposed floor consideration of the measure. Barring an unexpected reversal, the measure is dead for this year. In February, the state Senate had passed the proposal 34-8.

Today’s action came just a few hours after the lower chamber voted overwhelmingly to send another pro-life measure to Governor Mary Fallin for her signature.

Martha Skeeters, president of the Oklahoma Coalition for Reproductive Justice, sent CapitolBeatOK the following statement regarding S.B. 1433:

“The Oklahoma Coalition for Reproductive Justice is gratified that S.B. 1433, the Personhood bill, is dead in the Legislature. This extreme bill had the potential to harm Oklahoma families by threatening contraception, assisted reproductive technologies and other necessary medical services.”

Skeeters continued, “We will continue to oppose any personhood proposals and to educate the public about their potentially harmful effects on the citizens of Oklahoma.”

Expressing deep disappointment, state Rep. Sally Kern of Oklahoma City, a Republican, said in a statement to CapitolBeatOK, “I am pro-life and do not agree with refusing to grant a floor hearing to any pro-life bill that has gained committee approval.

“While I will abide by the caucus’ decision, I certainly was not among those opposing the bill. And I will continue fighting for the rights of the unborn.”

The legislation would have found that the “ “life of each human being begins at conception” and asserted the “laws of this state shall be interpreted and construed to acknowledge on behalf of the unborn child at every stage of development all the rights, privileges, and immunities available to other persons, citizens, and residents of this state.”

The proposal was certain to provoke a contentious floor debate. Nearly two dozen possible changes – most regarded as “killer amendments” – had been submitted by members, including state Rep. Doug Cox, a Grove Republican, and state Rep. Emily Virgin, a Norman Democrat.

Speaker of the House Kris Steele informed members of the Capitol press of the GOP House caucus decision Thursday afternoon. He stressed the decision was “not made unilaterally.”

He recently discussed the issue with state Rep. Lisa Billy, a passionate pro-life advocate, and said that she “understood there were strong feelings on both sides.”

Steele noted the Legislature has passed 30 pro-life measures over the past eight years. While he thought the measure had “no substantive effect on public policy” -- and that he would have supported it had a final vote been held -- Steele told reporters many House members agreed with critics of the bill who asserted it would limit access to birth control and in virtro fertilization.

Advocates of the legislation had insisted its practical effect would be largely symbolic, in asserting pro-life sentiment in the state.

Steele revealed to reporters that his own study of the legislation had led him to conclude that it did not fully mirror a Missouri law that passed constitutional muster in the U.S. Supreme Court’s Webster decision (1989). The Shawnee Republican disclosed there was unease among some Republicans that the state would invite losing litigation if S.B. 1433 were enacted into law.

Concerning rumors of an effort to force the measure onto the floor with a discharge petition, Steele explained the proposal had already cleared the committee process and would not be subject to the discharge process. In any case, “It was clear what the will of the caucus was.”

It is unclear what effect the demise of the statutory proposal might have on an initiative petition drive organized earlier this year by Personhood USA. That measure would amend the state constitution in ways that advocates of the initiative route contend would be more effective than the statutory route.

Despite the setback on the statutory measure -- a priority for Oklahomans for Life, the state’s leading pro-life advocacy group -- Thursday morning the House approved (thereby sending to Governor Mary Fallin for her signature) Senate Bill 1274. The measure by state Sen. Dan Newberry and state Rep. Pam Peterson, both Tulsa Republicans, cleared the House 75-12.

The Heartbeat Informed Consent Act, S.B. 1274, Peterson said, “ensures that a woman is given the opportunity to assess” information about the heartbeat of an unborn child at eight weeks of gestation or later. She said, “Our laws should not be stuck in the 1950s when it comes to medical issues.”

Peterson said, “It is important to ensure informed-consent rights. There’s a much greater array of medical data now available to women, and we should not allow them to be denied access to that knowledge.”

Peterson pointed to the U.S. Supreme Court’s decision in Planned Parenthood v. Casey, in which a majority of the justices found: “In attempting to ensure that a woman apprehend the full consequences of her decision, the State furthers the legitimate purpose of reducing the risk that a woman may elect an abortion, only to discover later, with devastating psychological consequences, that her decision was not fully informed…”

A woman in recovery remembers Sue Tibbs

Thu, 19 Apr 2012 15:28:00 GMT

Editor’s Note: Last week, Cummings spoke at the memorial service for the late state Representative Sue Tibbs. This is her prepared text for her tribute to Tibbs. It is reprinted with permission.

My name is Kimberly Cummings. I am a mother of 3 beautiful children and a July 2010 graduate of Women in Recovery, a year-long prison diversion program in Tulsa. I am happy to report that in lieu of a ten-year prison sentence, I am here with you today.

It is my honor to stand before all of you today to pay respect to a wonderful, powerful, and amazing woman who truly impacted me, my peers, our children, our communities and the great State of Oklahoma.

Representative Sue Tibbs had an understanding of many women like me and their children whose lives were affected by abuse, poverty, trauma, addiction and incarceration. I stand here today representing many who have changed and many more who will benefit as a result of one beautiful and genuine woman.

I first met “Sue”, as she asked me to call her, in October of 2009 when she came to Tulsa to visit Women In Recovery.

What I now realize is her wisdom in bringing with her Representative Kris Steele, knowing that there was a need for a new vibrant leader to champion alternatives to incarceration for nonviolent women.

Rep. Tibbs was a pioneer for this cause and knew all too well that reforming the system is a task too large to be handled alone. She shared with Speaker Steele and every woman in that room that day her passion, dedication, and heart for this population and that better alternatives exist.

I can remember the intensity and concentration on Representative Tibbs face as she wholeheartedly and attentively listened to my peers and me tell our stories about addiction, severe emotional and psychological trauma, sexual abuse, and unresolved abandonment issues.

You see, I had but 6 months sobriety and because her compassion for women was so deeply embedded into who she was, she willfully and intentionally gave of her time, energy, resources, and most importantly, her heart to come hear our stories. She shared her vast experience and knowledge of how alternatives to incarceration programs like Women in Recovery offer solutions for women like myself, women who require services over incarceration, wanting only to reunify with children and families. She truly wanted the best for us.

I will never forget the way Representative Tibbs looked at us we walked her from the building. I shared with her my heart and resolve to serve God by serving others, to stay sober and to become an advocate for those women and children still entangled in abuse, addiction, and a life of trauma that could only lead to incarceration.

She turned to me, looked me straight in the eyes and told me to NEVER stop believing in myself and that I could do the things I spoke of. Although I am not able to remember her exact words, her message to me was that God has a purpose for every living being and if we all keep striving and always try to help the next person along, things will be as He has ordained and the world will be a better place.

I will NEVER forget that moment or any of the moments Rep. Tibbs shared over the course of the past three years. Each time I visited the Capitol building after our first encounter, I stopped by her office. She always welcomed me with a warm and tender hug, followed by words of encouragement and wisdom to serve.

The last time I heard Rep. Tibbs speak, she gave an unforgettable keynote address at a Women in Recovery graduation.

She said “One of the misconceptions that has plagued those of us who have been working to improve the corrections system has been that all criminals should serve time behind bars. It is difficult to get the word out to all those Oklahomans who have not been exposed to difficult upbringings or addiction and who do not always understand what it is to struggle with such problems.”

She was never judgmental, sought to understand the complex issues and never relented to educate her fellow legislators.

I close today with a quote from Representative Tibbs that brought meaning to me and I hope it does you too “I am not only excited by the changes going on at the state level, but I am also excited for each and every one of you personally. The history of the program indicates that you will go on to find good jobs and have more quality time with your families. For those of you who are mothers, I am excited that your children will get to spend more time with you because you were given an alternative to incarceration. I would love to see more mothers and their children have such an opportunity.”

Three women inspire attendees at Capitol graduation ceremony for Women in Recovery (WIR)

Thu, 19 Apr 2012 15:57:00 GMT

The largest graduating class ever for the Women in Recovery (WIR) program held a joyful commencement ceremony in the state Capitol Blue Room this morning (Wednesday, April 18). The 18 women heard from state political leaders and from two of the program’s coordinators, but the real stars of the event were the enthusiastic graduates themselves, including three who shared their stories.

Melissa Martin was the first of the trio of WIR graduates to talk. She called the graduation a “memorable day” in the lives of each of the women. Martin recalled that in August of 2010, “I was arrested for attempting to manufacture meth, child endangerment and possession of a controlled substance.”

Martin was, she said, fortunate to be diverted out of incarceration, and given the option of entering Women in Recovery, a project of Family & Children’s Services and the George Kaiser Family Foundation, Tulsa organizations who sponsor WIR.

Martin described herself as “a changed woman. At the age of 28, I finally have my license and am now driving legally. I have now opened a bank account, have earned my GED diploma and am working two jobs. All of this did not matter to me in my thirteen years of addiction but, now means the world to me.”

Christy Satterwhite, another graduate, had one of the day’s most searing narratives. She told a spellbound full house in the historic venue, “I am 29 years old and I was an opiate and methamphetamine addict for 5 years. My addiction started out by taking opiates after I had my appendix removed. I liked how they made me feel and started finding every reason I could to get more from my doctor.

“At this time in my life I was a Certified Medication Aide in a nursing home so if I couldn’t get them from my doctor I would steal them from the medication carts at work. When I was 6 months pregnant with my daughter I went through rehab and was clean for the rest of my pregnancy and for 1 month after my daughter was born.”

But then, “my husband introduced me to crystal meth and I liked it. I felt that it made me a better mother to my two children and a better wife because I now had more hours in the day to get everything done that I needed to do.

“Little did I know that I was destroying myself and everything around me. After 2 months of using I had asked my dad to take my children, separated from my husband, and had started hanging around with people that knew how to make meth only so I could learn how to do it and support my own habit.

“Within the next year I had met a new guy and moved into an apartment with him and was working around the clock to keep up with my habit. It felt like I was a prisoner in my own home at times.

“On September 2, 2010, Tulsa police department knocked on my door to serve me with an eviction notice and found the meth lab in my apartment. I stayed in David L. Moss [a Tulsa County criminal justice holding facility] for 2 weeks until I was bonded out and while out on bond I still continued to use. I went back to jail on November 17, because my bond had been revoked due to non-payment. This time I didn’t get back out.”

She believes her break, positively speaking, came when “Women in Recovery came to my rescue and I was accepted into the program on February 22, 2011. This program has changed my life.

“Today I think things out and don’t act on impulse. I make sure that my needs are met before I meet the needs of someone else. I have healthy boundaries with all my friends and family. My children and I are able to spend quality time together today and I can actually be the mother that they need me to be.

“Over the last 14 months, Women in Recovery has helped me with getting assistance from Eastern Oklahoma Donated Dental Services for the beautiful smile I have today.”

Satterwhite went on to than various organizations WIR arranged to assist her: “Mental Health Association of Tulsa for helping me with housing until I was able to move home. Vocational Rehab for providing me with bus passes, clothing assistance for work, car repairs, and doctor’s appointments for annual exam and eye care. Today my life is structured; I am responsible, honest, and trustworthy.

“I don’t worry about who is knocking on my front door. I can laugh and cry and truly feel my feelings. I no longer feel the need to stuff them or try to hide how I feel. Today I have real friends that love me for me, not for what I have and my family can count on me for anything.”

Satterwhite described herself as “happy with who I am today -- which she described as “the most important thing of all.”

WIR ceremonies are always leavened with passion and emotion. While patterns of life are often similar among the women who enter and complete the program, each woman’s personal narrative is distinctive and reflective of their individuality.

Brooke Larson, another graduate, spoke near the end of the program, after attendees had heard from Speaker of the House Kris Steele. She spoke directly to the Shawnee Republican, telling him she and fellow graduates, “can’t thank you enough for all you do to make sure we get a second chance at life.”

Larson is 32, and, she said, “a mother of four wonderful children. My story is very much like that of other addicts, full of tragedy and trauma leading to addiction, but mine along with my fellow graduates, ends in joy and with triumph.

“I had a ‘normal’ life, or so I thought. I graduated from high school with honors, went on to college on full scholarship, got married, and was a stay-at-home mom of our two children. That was the normal part. After almost 8 years of marriage, I discovered that my beloved husband was a drug addict.

“Never having known anything about addiction, I was completely caught off guard and had no idea what to do. I urged him to go into rehab, but he always refused.

“The day before Thanksgiving, after 8 1⁄2 years of marriage, my husband died of an overdose. And that is where my story really begins.

“I remarried a man who seemed to be a wonderful step-dad to my children and a loving husband to me, but after being married for 6 months, he began abusing me. After two years of marriage, two babies, and countless hospital trips, stitches, and broken bones, he was incarcerated for Aggravated Domestic Assault and Battery.

“Unfortunately, during this time I had begun to use drugs with him to cope with the loss of my first husband and the abuse of my second. By the time he went to prison, I was a drug addict and had also become a drug dealer alongside him.

“A year later, I too went to prison, but mine was for Drug Trafficking. I was doing a 10-year sentence for Drug Trafficking, a 5-year sentence for Distribution, and had just completed an 8-month federal sentence when I requested a year judicial review, and when my judge granted the review and agreed to look at my case, he referred me to Women in Recovery for an evaluation.

“After I was interviewed and it was determined that I met the criteria, Judge [Kurt G.] Glassco allowed Women in Recovery to take me into their program. From start to finish, I did 16 months in the custody of Department of Corrections before Women in Recovery accepted me and began to help me change my life.

“I have learned so many wonderful, vital tools that I will use forever. I know how to put boundaries in place, and how to enforce them without feeling guilty. I have learned a plethora of valuable parenting skills and am a far better mother now than ever.

“I have gained insight into myself and why I do things the way I do, and have become empowered to make decisions based on what is safe and healthy for my children and me. And I am equipped to share with my children all the information I have gained, so that hopefully they can learn to make healthy decisions now, rather than have to experience the things that I have.”

Other speakers a the event included Governor Mary Fallin and Speaker Steele, advocates of increased use of supervised alternatives to incarceration, and WIR administrators Amy Santee and Mimi Tarrasch.

Note: Aran Coleman provided the graduation photograph accompanying this story.

Seeking lives “substance free and ready to contribute to society”

Thu, 19 Apr 2012 16:08:00 GMT

The Women in Recovery (WIR) graduation ceremony was at times inspiring and frequently emotional, especially in the powerful speeches from three graduates – Brooke Larson, Christy Satterwhite and Melissa Martin.

Still, the public policy purpose behind the event for WIR -- a project of Tulsa’s Family & Children’s Services and the George Kaiser Family Foundation – was evident in the comments of Governor Mary Fallin, Speaker of the House Kris Steele and two women who direct much of the work at WIR.

The program’s sixth graduating class brings the number of women helped to 139, with 70 of those graduates. The effort has broadly and positively impacted 325 children.

WIR is described by organizers as “an alternative to incarceration program for nonviolent female offenders in Tulsa County who have alcohol and drug addictions.”

In her prepared remarks, Oklahoma Governor Mary Fallin said, “Oklahoma still ranks first in the nation with the rate of incarcerated nonviolent female offenders. With programs like Women in Recovery, we are starting to buck that trend, save lives and families in the process.

“This being the largest graduating class in the program’s history shows that these women are dedicated to a life that is substance free and ready to contribute to society. My sincere thanks goes out to the sponsors, volunteers and everyone involved in getting these women rehabilitated.”

Fallin encouraged the graduates to carry forth into their communities the message that “it can be done. There is hope. You can change.” She praised them for becoming “successful, contributing Oklahomans” who work and pay taxes. Fallin affirmed, “All of us want to know that our lives count. … God allows U-turns.”

Fallin revealed she often thinks of WIR when she reads the stories that accompany requests for pardon and parole, and noted that incarcerated women in the state “often have children.” She praised Steele’s passion for justice reinvestment, efforts to redirect some criminal justice system resources into programs of supervision and treatment. Her mention of Steele’s name provoked a standing ovation from the WIR graduates.

Mimi Tarrasch, director of WIR for Family & Children Services, related the structure of the program, distilling its impact with the story of a particular woman working her way through a transformational year with the agency.

Tarrasch said, “Isn’t it intriguing that 18 women who were in their addiction for a combined total of 228.6 years are proud to be sitting in front of you today in the beautiful Blue Room at the state Capitol?”

She described the women as “both remarkably brave and fascinating.” Not so long ago, “each one of them was living a life of despair while immersed in their addiction. They envisioned little or no hope of recovery nor were they able to see any hope for their future.

“To use their words, they feel like a lost cause, a failure as a person, parent, daughter, spouse, a failed human being. Many describe a feeling of being trapped, frustrated and unsure of their identity. They come with shame, embarrassment and a loss of personal dignity especially when entering the criminal justice system.”

She continued, encouraging her audience to “look at them now, capable, beautiful and bright women able to reunite with their combine 50 children and 17 grandchildren. Eighty-eight percent are graduating with their GED or high school diploma. Seventeen percent will be starting college this fall.

“All are working and paying taxes, but for one who is on disability, and 22 percent have more than one job. These are beautiful, accomplished women whose lives are full of hope, renewal and gratitude.”

Tarrasch then went on to describe “Marie” as an example of effective use of the resources provided by George Kaiser and the Family & Children’s Services group.

She said, “We met Marie after being addicted to meth for 20 years. Marie began using at the age of 12 after her mother refused to believe her that her stepfather had been sexually abusing her for over three years.

“When we met her she was facing 10 years for a drug crime. In lieu of incarceration, she was provided the opportunity to participate in Women in Recovery (WIR).

“Marie enters WIR with a GPS monitor, is on house arrest, receives frequent drug tests and is under strict supervision by Tulsa County Court Services. She is put in safe and sober housing away from known negative influences and unsafe environments. She comes to a nine hour a day treatment program where she faces her demons in therapy, learns how to overcome her addiction and gets mental-health services for depression and anxiety.

“Marie, like some, did not finish high school or have marketable skill to rely on in order to be self sufficient when completing treatment. Therefore, she started taking GED classes on site where she received extra math tutoring and participates in work-skill development. In addition to being sober, she had to learn skills to become self-sufficient. She now has the confidence and sobriety to begin a new relationship with her children. On-site parent educators and coaches provided education and support to aid in a successful reunification with her son and daughter.

“Marie and our 18 successful graduates are on a pathway to productive citizenship for a fraction of the cost of incarceration.”

Amy Santee, senior program officer for Kaiser’s foundation, reflected, “The Women In Recovery program improves public safety, saves taxpayers’ dollars, and most importantly it changes lives –- not only the lives of the participants but also the lives of their children. For it is the children whose lives will be devastated when their mothers’ addictions and mental illness go untreated, when she is unemployed, unengaged or absent. It is the children whose lives will be irrevocably changed when their mother is imprisoned.

“The Women In Recovery program offers an alternative to prison and an opportunity for a better life. The program is grounded in best practices and research around trauma, addiction, mental illness, criminal behavior and family reunification.”

Santee praised Tarrasch and the FCS staff, including Gail Lapidus, and went on to lift up “community volunteers, advocacy groups, non-profit leaders, faith-based organizations and business leaders, many of whom were laying the groundwork for change far before the program began.”

Santee also honored Fallin, Steee, Lt. Gov. Todd Lamb and Senate President Pro Temp Brian Bingman for recognizing “that our criminal justice system is in need of repair and are actively promoting reforms to improve this system. Policy does matter; there is more that can be done to improve the safety of our communities, achieve better outcomes at less cost and with less human devastation.”

The full room at the Capitol for the commencement exercises included district attorneys, judges, public defenders, business leaders, community partners and supporters of the group. Tulsa state Rep. Jeannie McDaniel was there, along with another good Democrat – Carl Frederick of Shawnee.

Speaker Steele described his unexpected friendship Frederick in terms that resonated with the eclectic group of supporters of justice reinvestment ideas, but did not reveal the presence of his Shawnee neighbor until the end of his address to the graduates.

In prepared remarks, Steele said, “We commend these women for rising back up and fulfilling the rigorous requirements of graduation. They are inspirational individuals who are positive proof that there can be a better, more effective way within the criminal justice system.”

Steele is the sponsor of House Bill 3052, which is pending before the Senate with a handful of amendments from the original House version. The proposal blends ideas that have come from a diverse network of national organizations with long-standing interest in criminal justice reform, particularly the burgeoning costs of incarceration for non-violent offenses.

The Council of State Governments (CSG) worked closely with Speaker of the House Kris Steele, a Shawnee Republican, in crafting the bill. Advocates have also gleaned ideas from “Right on Crime,” a conservative public policy group affiliated with the Texas Public Policy Foundation.

Note: Aran Coleman provided photos for this story.

Special needs law to remain in force while controversial ruling is appealed

Wed, 18 Apr 2012 23:35:00 GMT

A Tulsa district judge today (Wednesday, April 18) issued an order leaving a special needs scholarship program in effect while advocates for handicapped children prepare an appeal of her controversial ruling that the program is unconstitutional.

Judge Rebecca Nightingale ruled the historic Lindsey Nicole Henry Scholarships for Students with Disabilities Program Act will stay in force while supporters of the program appeal her ruling.

Eric Baxter, senior counsel at the Becket Fund for Religious Liberty, said in a statement sent to CapitolBeatOK, “We are pleased the students will continue learning in an environment that can address their needs. However, it is unfortunate that the school districts decided to spend their money suing the families of disabled students instead of supporting opportunities for students with disabilities to succed. It’s like suing grandma because she signed up for Medicare.”

Baxter argued the case before Judge Nightingale, facing opposing counsel from Tulsa’s powerful Rosenstein, Fist and Ringold law firm.

In a verbal ruling without commentary or analysis, Judge Nightingale last month ruled for the Jenks and Union public school districts, whose lawyers had assailed the scholarship program. The scholarships were first enacted in 2010 with bipartisan support. The legislation was signed into law by then-Governor Brad Henry, a Democrat.

The law allows children with specified disabilities to have tax resources follow them to the school of their parents’ choice. Baxter characterizes the law as “a win-win situation. The scholarships meet pressing needs without imposing additional costs on the state.”

Baxter termed Judge Nightingale’s March 27 edict “unprecedented. The Oklahoma Supreme Court has been clear for decades that the State can contract with private entities – including religiously-affiliated entities – to provide services the State would otherwise provide directly. What the state cannot do is exclude some service providers simply because they are religiously affiliated, which is what the district court’s ruling would lead to.”

The Tulsa decision stands in contrast to the January 13, 2012 decision of Indiana Superior Court Judge Michael D. Keele, who disagreed with opponents of the Hoosier State’s school choice legislation.

Keele upheld that that state’s law, noting that to prohibit it “would cast doubt on the validity of a host of other longtime religion-neutral programs whereby taxpayer funds are ultimately paid to religious institutions by way of individual choice.” (Teresa Meredith et al. vs. Mitch Daniels, et al. Cause No 49DO7-1107-PL-025402, January 13, 2012)

Judge Keele pointed to a higher education program that allows students to use state scholarships to attend private religious schools in post-secondary years.

In another case touching school choice, Arizona Superior Court Judge Maria del Mar Verdin rules, in the case of “Sharon Niehaus, et al. v. John Huppehthal, et al.” that disbursements of scholarships to parents exercising choice did not violate that state’s “aid clause.” (Superior Court of Arizona, Maricopa County CV 2011-017911, January 25, 2012)

State Rep. Jason Nelson of Oklahoma City, a leading advocate of the special needs scholarship program, responded quickly to today’s decision leaving the program in place.

In a statement sent to CapitolBeatOK, Nelson said, “Allowing the program to continue during the appeal is the right thing to do. “I know the decision by the judge to grant a stay comes as welcome news to the parents and students who are currently benefiting from the law. I look forward to the Oklahoma Supreme Court taking up the appeal of Judge Nightingale’s ruling where I believe it will be overturned.

“The law is clearly constitutional if numerous similar state programs are any indication. Opposition to this law is parochial and political – not constitutional.”

In-E-Quality: Quality Jobs Program morphs into easy money source for those who know the game

Tue, 17 Apr 2012 15:23:00 GMT

Eighteen years in, Oklahoma’s economic development crown jewel, the Quality Jobs Program, has strayed far afield, costing taxpayers much more than originally intended and paying out much more per job in many cases.

The information was gleaned by CapitolBeatOK from open records sources and web resources, as well as Oklahoma Department of Commerce and Oklahoma Tax Commission personnel familiar with the program or directly involved in its administration.

Oklahoma City Chamber President Roy Williams said a few months ago that QJP is a huge success, creating over $768 million in new payroll since its early 1990s launch.

But since QJP began, guidelines have become far more generous, and the state in many cases is paying more per job than it should have to – certainly more than once envisioned.

The program provides cash rebates of up to five percent of new payroll to new and existing companies for creating new jobs.

The contract can last for up to 10 years if $2.5 million in new payroll is created within three years.

But amendments to the law or Commerce Department decisions have relaxed the $2.5 million threshold for many recipients, records show.

The original legislative intent of the program was to support the start-up of viable business programs or companies that would create new jobs, attract new corporations, promote sales of Oklahoma products and services and provide workers health benefits.

In some cases, it has worked well. But many reincarnations and amendments in the law later, it appears it has become an easy way to “take the money and run.” (See the complete chart of QJP participants in the chart accompanying this story.)

Would Oklahoma’s taxpayers be happy if they knew:

Oklahoma paid $6.5 million to underwrite Wal-Mart pharmacy jobs around the state?

Oklahoma pays quality jobs cash to companies as they’re going belly-up, laying off workers or vacating the state – and it’s crystal clear that’s the case?

Oklahoma makes no effort to recapture money in response to overblown job projections? There is is too much temptation to project large job predictions because incentive payment calculations take this into account. And, there are no penalties or disincentives for failure to meet the projections. In fact, it could be said companies are financially rewarded for at least three years for doing so.

Oklahoma paid $3.5 million to one Tulsa company projected to create 3,000 jobs and five years later, it listed 15 jobs in that program? That’s $233,000 per job.

A company has a good shot at re-enrolling for multiple 10-year contracts by simply by creating a new legal entity. Repeated failures to meet the jobs targets appear to matter little.

Numerous companies never make it past the three year ramp-up phase because they either failed to hit payroll targets or for other reasons of their own.

Indeed, numbers tell the story. Many QJP proposals to the Oklahoma Department of Commerce include vastly overblown new jobs predictions.

It isn’t until after three years that payments are directly tied to actual jobs.

No matter how many or how few jobs the company creates it gets to keep all the cash from the first three years.

It is very difficult for a company to ramp-up a new program in less than three years according to Commerce’s division director for policy, research and economic analysis, Deidre Myers.

Every Quality Jobs participant goes through a “rigorous process” of analysis by Commerce officials to make sure their proposals are viable, Myers said.

“It’s impossible to know how a company will perform over 10 years,” Myers said. “There are a limited number of companies that are not going to be able to complete their contract because of economic reasons. That is normal and we expect that.”

She said the number of jobs under contract with Commerce and the number of jobs a company publicly announces may be different, but didn’t elaborate on that somewhat puzzling observation.

Though the law charges Commerce and the tax commission with jointly overseeing and determining proposal viability, one tax commission official who insisted on anonymity said, “The Commerce Department just sends us a list of who to send checks to. That’s the extent of our involvement.”

Though requirements are certainly more lax now, one goal has been consistent according to one Commerce official: that the money paid out not exceed the benefits to the state.

Commerce Department QJP program administrator Richard Schwalbach assures that the program is indeed revenue positive and that payroll is monitored closely. He said after ramp-up, no money is paid out unless the jobs are actually on the participant’s payroll.

He defends imposing no “clawback” provisions, saying companies would avoid doing business in Oklahoma if faced with such risks. Clawbacks would return some or all taxpayer money if jobs aren’t created, the company goes belly-up or leaves the state.

A look at the Oklahoma Tax Commission chart shows companies having to exit the program for failing to hit target numbers, while others remain in. Numerous others drop out voluntarily. But they kept every dime of the ramp-up money.

Guidelines seem to have been loosened by lawmakers such that the $2.5 million payroll threshold doesn’t apply to many manufacturer classifications anymore.

But around the country, The City Sentinel found the same trends. Few companies are held accountable. And fewer still are monitored by outside agencies of officials, according to a study by www.goodjobs.org.

Goodjobsfirst.com is a corporate subsidy tracker search engine. The hosting group collects data to help promote accountable economic growth across the nation.

QJP’s guidelines have placed it in the middle of failing or dying company dramas many times, as well as companies exiting the state in a hurry.

The Great Plains Airlines fiasco is one example. Branded by experts as ill-conceived and doomed from the start, the Oklahoma Legislature ultimately coughed up an estimated $28 million for the venture, which failed heading into 2004. That was also the year the QJP gave the airline $336,000.

The downfall didn’t just hurt taxpayers. Bank of Oklahoma stepped up in good faith, lending $7 million to assist the venture, only to lose it several years later.

Weatherford’s Imation Corp. announced it was closing in early 2010. Several months later, it received $78,000 in Quality Jobs checks. In 2011, Commerce gave Imation another $109,309.

Commercial Financial Services received over $9 million in QJP money over nearly 10 years, then collapsed into a bankruptcy blaze in 1999. After dodging prison time over criminal allegations, the company president has re-enrolled in QJP, but has yet to file a claim for any cash rebates, records show.

Dell Computer Corp. came to town in 2005. It began laying off in 2008 and is now 500 below its original public jobs announcement. It has received about $19 million in QJP incentives.

In cases such as Dell, is the state delaying the inevitable, propping up companies at great cost to taxpayers -- buying time? It remains to be seen.

Meyers said the program works as lawmakers have structured it and Commerce is simply carrying out its directive.

“I would not assume I know better than legislators how to formulate this incentive program,” she said. “The Department of Commerce simply implements the program. Right now we administer the program according to the law and according to the best of our ability.”

Clearly, there are companies that have enrolled in QJP with viable business proposals and have – and are making -- earnest efforts to reach targets. And many are creating jobs with staying power.

As he seeks reelection to Congress, Oklahoma’s Tom Cole is optimistic for Republican chances to win the presidency, U.S. Senate and U.S. House

Tue, 17 Apr 2012 16:50:00 GMT

U.S. Rep. Tom Cole, seeking reelection in the Fourth Congress District of Oklahoma, has what can be accurately deemed a “somewhat optimistic” view of progress made in Congress over the past two years, since Republicans regained control of the House of Representatives. He leavens that, however, with an explicit belief that Republicans must regain the Senate and the presidency to allow national progress.

In an interview With CapitolBeatOK at the state Capitol in Oklahoma City, Cole reflected:

“ We’ve had three great compromises that I give Republicans a lot of credit for.

The first was extending the Bush tax cuts in December of 2010. We had to extend unemployment benefits and have a payroll tax deduction – but we extended those.

“Second, of course, we managed to cut spending in the context of the budget deal in April of 2011. We didn’t shut down the government and got some significant spending cuts.

“Finally, the debt ceiling deal. We got a $2.2 trillion long-term cut in spending. First time that’s happened in American history. On top of that, three free trade deals, and a couple of other significant jobs bills.”

Cole stressed he’s not looking through the equivalent rose-colored glasses. He continued:

“The big questions are really going to be decided … in November. If we can get the Ryan budget, if we can begin to deal with our long-term debt, if we can actually pass some of the economic legislation not only through the House but through the Senate, we could turn the country around.

“That’s going to take a Republican president, and that’s going to take a Republican Senate.

“I think in the elections, we’re going to hold the House of Representatives, no question. No president running for reelection has changed control of a chamber since 1948.

“If we win the presidency, we’ll certainly win the Senate. We have three sure pick-ups, and about a half dozen others that could go either way. We have a couple of seats in danger, Massachusetts and Maine, but on balance we could win the Senate.

“The presidential race is going to be exceptionally close. I always remind people that the president had perfect conditions, and no record to run on in 2008. This time around, he’s got a record of failure.

“He said that unemployment would never get above 8 percent, but it’s never gotten below. He said he would cut the budget deficit in half; it’s bigger than it was his first year. He said that he would get the economy moving again, but nobody really believes we really are.

“So, I think we can hold him to account. Nobody that didn’t vote for him last time has changed their minds. This isn’t like Ronald Reagan, who had people against him and then after they had seen him govern, changed their direction.

“I think all the 170 electoral votes and 46 percent of the popular vote that was against the president last time still are. There are a lot of states he carried last time – Indiana, North Carolina, for instance – and there is no way he’ll carry them this time.

Other states are trending our way – Florida, Ohio, Virginia. So, I expect this to be a down to the wire election.”

An historian before he became a leading political consultant and a member of Congress in 2002, Cole believes, “It’s a big election, like 1980. This is one where the country basically decides whether it wants a government-centered, almost entitlement-centered economy going forward -- or if it wants to go back to proven principles of the free enterprise system, with smaller government, less spending and strong defense.”

Concerning the election, he believes it will be close. Some weeks ago, analyst Dick Morris said he believed the popular vote percentage breakdown will run around 53-47, with the advance to Republicans.

Cole agrees in large measure, saying, “That’s very reasonable. I think it’s a 51-49 type race. I really do. I think we’ll be up late on election night. If you can tell me what the economy looks like 90 days out, I can probably get a pretty good idea of the winner.

“I think people know the country can do better than it’s done the last four years. I think the president is going to have to wage a very negative campaign. He’s going to have to try to destroy his opponent, most likely Mitt Romney.

“People will see through that, in the end. I think people will see through that, in the end. They will opt for optimism. I think we’re actually the optimistic party, and not the president."

Paul Blair brings strict fiscal conservative views to District 41 Senate race

Wed, 18 Apr 2012 14:30:00 GMT

Paul Blair, minister to a congregation in Edmond, is seeking the Republican nomination in state Senate District 41. The incumbent is state Sen. Clark Jolley.

In an interview with CapitolBeatOK, Blair said he has “become frustrated with the political shenanigans that are being played down at the state Capitol. We’ve got politicians who seem to raise money for their campaigns from different lobbying groups, then spend their duration in office repaying the lobbyists; and then repeating that cycle time and time again.”

Blair asserts, “Nobody seems to be representing the everyday, average citizen in the community. We know that the federal government is broken. We’re $16 trillion in debt. We point our fingers at Washington, but we’re just as guilty. You know, in the state of Oklahoma, we have increased our state spending by over 72 percent in just the last 10 years.“

He is frustrated with many in his own political party, saying, “Last year alone, with wall-to-wall Republicans, we didn’t really balance the budget. We actually did some financial maneuvering, or finangling I should say, and took $100 million out of our transportation fund budget, and moved it over to the general revenue, and then issued bonds to make up the shortfall.

“Well, that’s not making hard decisions -- that’s playing games, politically.

“We talk about some of the needs down at the Capitol. In fact, they’re wanting now to pass a $200 million bond issue in order to fix the Capitol.

“What’s sad is that just a couple of years ago, in 2006 and 2007, when things were going very well economically here, we actually had a surplus of almost $600 million. Well, why didn’t we fix the Capitol back then? Why didn’t we do something about the infrastructure needs back then?

“Instead of taking that $600 million and spending it on some of these needs that we are very well aware of now -- or instead of returning that money to the taxpayers to whom it belonged -- our Legislature took the money and frittered it away on such things as building a fence for the Spaceport in western Oklahoma, and funding for Centennial celebrations.

“What would have been a great idea is to celebrate the Centennial by fixing our Capitol and paying for it with the cash that we had. Unfortunately, we have politicians playing political games, and they are very generous at spending the taxpayers’ money.”

Blair said he brings conservative constitutional perspectives to the race. He commented, “My philosophy as we go into this is I’m going to evaluate everything with four questions.

“Number one, is it constitutional?

“Number two, does it grow the size and scope of government? We as Republicans campaign that we want to reduce the size of government, yet we never do.

“Number three, can we afford it?

“And, number four, can the private sector do it better?

“With those four questions, I think we’ll make a lot of decisions that really make sense to the taxpayers of Oklahoma.”

Asked to name specific programs or agencies he would seek to cut or eliminate from the state budget, Blair responded, “Well, they had a lot of questions and good ideas raised this year. One of the things that they talked about doing was addressing some of the funding for instance to the OETA, which is not a responsibility of government. Even though, as one of our legislators said, ‘Oh, that’s only a small amount of money, it’s only $4-5 million.’

“Well, it’s amazing. Why doesn’t he just write a check for the four or million dollars? It’s not a small amount of money. But again, that’s an example of how disconnected the legislators are. They’re very generous when they’re spending other people’s money.”

Scott Walker brings conservative message to Citizenship event in Oklahoma

Sun, 15 Apr 2012 00:24:00 GMT

This week, as Wisconsin Governor Scott Walker prepared to speak at the annual Citizenship Dinner for the Oklahoma Council of Public Affairs (OCPA) in Oklahoma City, hundreds of demonstrators opposed to his free market and fiscally conservative policies demonstrated outside.

Among more than a thousand attendees at the event, several older attendees remembered OCPA's early days, when a couple of hundred or so supporters might gather for such an evening. This year, there were as many demonstrators outside as there once were at those early assemblies of the conservative think tank.

Oklahoma Governor Mary Fallin introduced Gov. Walker as a “profile in courage” for battling his state's powerful public sector labor unions. She credited Walker as a man who “talked the talk, and walked the walk” of fiscal restraint and limited government.

At the beginning of his remarks, Walker, the star of the evening, spoke with affection of the Sooner State's chief executive, saying “there no doubt, when you look across the country” that Fallin is a conservative star.

Walker recalled a trip he took in 2011 to the Goldwater Institute in Phoenix for an event similar to the OCPA gathering. After speaking there, he traveled to Santa Barbara, California, and went to the nearby Reagan Ranch.

He recounted standing at the spot where the late President, in August of 1981, signed the largest income tax in American history to that point, “a true economic recovery act based on Art [Laffer’s] philosophy that if you put more money back in the hands of the American people, it would work. That’s exactly why you’ve got to help Mary do that here. That philosophy worked a generation ago, it can work again here in Oklahoma – and you can lead the country.”

After loud applause, he continued, “Too many people in the media forget about the fact that President Reagan’s tax cuts – slicing the marginal tax rate by 25 percent – brought about the longest peacetime economic boom in American history -- more than 21 million new jobs, more than 5 million new businesses. We could stand a little bit of that today.”

The evening's opening prayer had included a fervent and generous prayer for the outside protestors. That moment had apparently had an effect on Walker, who told the crowd, “I’m the son of a preacher, so I pay really close attention to the prayer.

"I've got to tell you, I appreciated that prayer. I particularly appreciated praying not just for all of us and our leaders, but for the folks who are outside.”

Walker told the crowd briefly about his children, who attend public schools. He said that in Wisconsin, Sundays are an important day – for Church, and the Packers. One particular Sabbath last fall in his home state, there was time between the end of the Church and the 3:15 start of a Packers game.

During that window of time, Walker said, he was raking leaves at his personal home (not the governor's mansion in Madison) with his two sons and a friend of the boys.

As they raked in the front yard, Walker said, a man drove by honking. Walker and the three lads looked up, the driver rolled down his window and the guy, he said, “flips me off.”

Gavin, his sons' friend, then asked, “Mr. Walker, how do you put up with that?”

Walker recounted the conversation this way: “Well, you know, it’s America. That’s what great about America. People can do and say what they want. But it’s a little raw, though. It would be one thing to do it at the Capitol, one thing at the governor’s residence. But literally out in front of somebody’s house, that’s a little cheesy out there. But you know what, instead of getting mad at them, literally, I pray for them.”

He continued, “I figure if somebody flips you off in front of your own house, there’s probably something more wrong with their life than just whether or not they agree with my policies or not. So, I think they need a little bit of God’s grace. So I pray for them.”

He concluded by saying, “Gavin, if you just stay positive in moments like this, God will provide something better to counter that in the future.”

Walker, a bit self-consciously said he hoped that was a “nice lesson.”

The story wasn't quite over. About 90 seconds later, there was “another honk” and they looked up. Walker remembers he, “thought maybe I should have raked leaves at night. Two cars. They both roll their window down and lean out the window and go like this” – making a fist bump of support.

The appreciative crowd applauded the story, and Walker concluded the tale, saying Gavin asked him, “Mr. Walker, did you know that was going to happen?”

He replied, “No, but it proves my point.”

Walker reflected, “In the end, the truth is what’s on our side. As long as we speak the truth, if we don’t allow our actions to get in the way of the truth, ultimately the truth will prevail whether it’s here or in Washington.”

Walker is a controversial figure, but there is little if any gap between his policy proposals and the issues on which he campaigned in 2010. Most contentious has probably been his push to limit public sector union powers.

Walker told the Oklahoma crowd his state in 2010 faced a “fiscal and economic crisis of unbelievable proportions.” He ran to be “CEO of my state.” He told voters "what I’d do. The news media was shocked that I’d actually do it.”

When Walker -- who had previously served as county executive in Milwaukee and before that as a member of the Legislature, took office after his victory in that election -- he told the Republican legislative caucus, “it’s put up or shut up time.”

In his opening weeks on the job, Walker pushed through an aggressive jobs agenda, property tax reductions, streamlined regulations, tort reforms to curb what he called “frivolous and out of control lawsuits.”

When reporters at the time challenged him, asking why he pushed so many issues so quickly, the said, “If you were the CEO of a company and you were taking over a company that was failing, you wouldn’t wait a year or six months or even a month, you wouldn’t wait.. … Wisconsin couldn’t wait.”

In the three years before he took office, the state had lost 150,000 jobs. In the first two months of 2012, businesses in the state created 17,000 new jobs. Walker reflected, “We’re turning things around, we’re moving in the right direction. It’s not just where you’ve been, it’s where you’re headed.”

Four Democrats are seeking to replace Walker and are running an early May primary. Walker faces a June 5 recall election.

He is currently trailing in opinion surveys, although the margin is close. Walker is often mentioned as a potential Republican vice presidential nominee.

Sponsors for the OCPA event included the Allen Family Foundation, Bowen Charitable Foundation, Ann and David Brown,

DeBee Gilchrist attorneys, Devon Energy, Josephine Freede, Rae and Hubert Gragg, The Helmerich Foundation, Jean and Dave McLaughlin, LaDonna and Herman Meinders, Jeanette and Dick Sias, the Samuel Roberts Noble Foundation, Donnie and John Brock, Ellen and Henry Kane, Michelle and Chip Mullens, Marianne and Pat Rooney, Lynn and Fed Standefer, Charles Sublett, the Chickasaw Nation, Bud Vance, Pat and Jim Wallis, Ward Petroleum, Linda and Daryl Woodward, Jennifer and Mark Alln, Terry and Lee Baxter, Blue Cross Blue Shield, Mary and Bill Braum, Roberta Collins, Covenant Global investors, Julie and Charlie Daniels, Friedman Foundation for Educational Choice, Friends of Jim Inhofe, Koch Industries, Ann Lacy and Carolyn Anne and Gene Love

Patrons included Arlene and Glenn Ashmore, AT&T Oklahoma, Kay and Robert Avery, Evelyn and Bill Boulton, Kayla and Michael Carnuccio, Chesapeake Energy, Dorothy and Joe Cox, Dan Mullins Nissan, Bobbie and Melvin Gragg, Janet and John T. Hanes, Jones PR, Sheryl and Joe Kaufman, Suzy and Lew Meibergen, Lloyd Noble II, Oklahoma Wesleyan University, Catherine and Andrew Oster, Valerie Rhodes, SageNet Al Snips, Lorena Sublett, Jeanne and Bob Sullivan and Steve Wells.

The annual Citizenship gala drew a large crowd to the National Cowboy Museum in Oklahoma City. Dr. David Brown, the OCPA chairman and a national conservative leader from years of involvement with the Heritage Foundation, welcomed guests to the event. He introduced University of Oklahoma Professor Rufus Fears, an OCPA fellow, and former Oklahoma Medical Research Foundation President Bill Thurman, now retired in the Pacific Northwest but home in Oklahoma for the event.

OCPA President Michael Carnuccio, as the evening began, told the crowd of supporters of his group that the State Policy Network (SPN), a consortium of groups from across the nation that perform policy research and analysis along the same lines as OCPA, will hold its 2013 national meeting in Oklahoma City.

The group's annual Citizenship Essay award winners – students from public, private and home high schools in the state – were also honored at the gala. OCPA Vice President Brian Bush delivered the invocation Walker appreciated so much.A quartet deemed “Four Fun” delivered a stirring rendition of “America the Beautiful.”

Among those present were U.S. Reps. Tom Cole of Norman and James Lankford of Oklahoma City, and conservative statewide elected officials such as Fallin, Commissioner of Labor Mark Costello, Commissioner of Insurance John Doak, Corporation Commissioner Bob Anthony and Lt. Gov. Todd Lamb. A few dozen state legislators also attended.

KWTV News9 anchor Ed Murray served as master of ceremonies for the Citizenship Dinner.

Hundreds of union activists and allies protest Oklahoma visit by Wisconsin's Scott Walker

Sat, 14 Apr 2012 19:57:00 GMT

The Central Oklahoma Labor Federation (COLF) and allies gathered a few hundred demonstrators to protest the speech Wisconsin Governor Scott Walker delivered this week at the National Cowboy Museum.

COLF President Tim O'Connor, in a release sent to CapitolBeatOK, explained what he said was the purpose and framework of the demonstration. He said the goal was “to create greater awareness of Oklahoma’s working class and to build more Oklahoma public awareness of bad Wisconsin state policies pushed by Governor Walker and rejected by the citizens of that state.

“Oklahoma citizens should know Governor Walker was invited here to speak about his failed policies and how Oklahoma can push those same failed policies. Governor Walker’s extreme attacks on public sector workers has, in part, been reversed by a court of law and found in violation of the U.S. Constitution. This proves that Governor Walker rammed through his radical agenda without regard to the U.S. Constitution, the rule of law, or to what is right and fair for Wisconsin families.”

O’Connor continued, “Unfortunately, some organizations in Oklahoma think the harm Governor W alker has done to nurses, teachers and other public workers is a good model for our state.” O'Connor said the union members set out “to demonstrate loud and clear we will fight against any anti-working family agenda similar to those attempted in Wisconsin.”

Working with COLF on the anti-Walker demonstration were the International Brotherhood of Teamsters Local 886, and other members of the Central Oklahoma Labor Federation..

The Labor Affinity Group also supported the rally and demonstration. The group staged its effort from the Knight's Inn, 1400 N.E. 63rd Street. Activists first heard a prayer from

Rev. Lance Schmitz, then marched the short distance to the National Cowboy Museum. After making their feelings known for nearly two hours, the group marked back to the Knight's Inn for what organizers said was “a Cornbread and Bean Banquet for the 99 percent.”

The group promised to share money raised from its activities to purchase eyeglasses for

students at Capitol Hill High School who are unable to make such purchases themselves.

Governor Walker spoke on Wednesday (April 11) to a large and supportive crowd at the annual Citizenship Dinner of the Oklahoma Council of Public Affairs (OCPA).

Tom Guild, Democratic nominee in Fifth Congressional District, pegs incumbent as “wrong for Oklahoma, wrong for America”

Sun, 15 Apr 2012 02:47:00 GMT

Tom Guild, the Democratic nominee in the Fifth Congressional District (central Oklahoma, including Oklahoma City) says he will “win on the issues.” He contends the incumbent, Republican U.S. Rep. James Lankford “is wrong for Oklahoma, and wrong for America.”

Guild asserts Lankford's votes in the U.S. House show he “wants to privatize Social Security” and “kill Medicare.” The Democratic hopeful, who secured the party nomination after no one filed against him, also criticized Lankford for co-sponsoring a “life-begins-at-conception bill” that Guild characterized as “a radical personhood bill.”

Lankford will likely be able to raise hundreds of thousands of dollars to retain the seat. Guild told CapitolBeatOK he believes, for his part, an effective campaign can be run for $250,000. If he can raise that -- now that there is no primary opposition -- Guild will be able to save some resources for late advertising.

In an earlier interview, he reflected, “If we only get outspent about 6-1, we can win.”

True to his own predictions, Guild is running a low-cost campaign. He has knocked on hundreds of doors in the congressional district, and will visit many more front porches before November. Earlier this week, supporters gathered at his new campaign headquarters off Interstate-44 in northwest Oklahoma City, to celebrate the retired University of Central Oklahoma professor's birthday.

Attendees at the birthday fete included former state Rep. (and former state party chairman) Al Lindley, Debbie Hogue-Downing (Fifth District party chairman), progressive activist Susan McCann and Robert Floyd, among many other supporters. Current state party chairman Wallace Collins, also a former legislator, is another backer.

This weekend, Guild attended the annual Carl Albert Dinner, a major event for state Democrats.

Undaunted by the Republican voting patterns of the Fifth District in recent decades, Guild and his allies promise “a bold, progressive, grass roots campaign to win.” He has told CapitolBeatOK that after protection for Social Security and Medicare, the next three key campaign issues in his estimation will be “public education, transparency in elections and campaign finance reform.”

Guild contends America's middle class and the working poor are finding it more and more difficult to achieve the American dream.He believes the federal government does some things well, including curbing foreign aggression, providing an essential safety net an health care for seniors, advancing and protecting civil rights for all, and assuring equality of opportunity.

Guild has told CapitolBeatOK he believes government should “work for all the people.” Summarizing his objectives, Guild said he aims to bring to public office a vision for “competence, compassion and community-centered government.”

James Lankford seeks reelection to Congress – his key issues are still “budget and debt”

Sun, 15 Apr 2012 03:16:00 GMT

U.S. Rep. James Lankford of Oklahoma City, a conservative Republican, is seeking reelection to the Fifth Congressional District seat he now holds. In an interview with CapitolBeatOK, he explained why he wants another term – and addressed a broad range of fiscal policy challenges facing the nation.

Lankford said, “I don’t think anyone can look at the House of Representatives right now in the United States Congress right now and say, ‘Gosh, the job is done, there’s nothing left to do.’

"It is still a tremendous mess.

“We’re trying to work through the process of cleaning up some very distorted systems and an inoperable process between the House and the Senate. There is still a great amount of work to be done to try to move that forward. I’m a subcommittee chairman ...; we’re trying to make progress on the Oversight and Government Reform side of things.”

He continued, saying he and colleagues are “trying to repair systems and structures, and trying to focus on the singular, largest issue of our day. That’s our debt and our budget.:If we can not resolve our budget and our debt, nothing else is going to matter, long term, for us.”

Asked if those issues sublimate every other policy challenge right now, he responded:

“Budget and the debt will definitely be the key features not just for this year, not just for the next, but it’s going to be a 10-year battle to fight back our debt. We have $15.6 trillion in debt right now – and just this one year it’s $1.3 trillion.

“We have got to be able to work with the House and the Senate, and the president, together to be able to find a solution, to say we can all agree on this, this is a plan to be able to move forward.

"Because if we don’t ever get a plan, it doesn’t matter how big the debt is, or how fast it’s growing – if there’s no plan, it’s just an auto-pilot acceleration from here on out. We cannot do that as a nation. Obviously, that kind of debt and deficits that exist are not sustainable. So, we’re gotta fix that.”

As for the federal budget, Lankford discussed the Ryan Plan (named for U.S. Rep. Paul Ryan of Wisconsin – a proposal vigorously opposed by Lankford's Democratic opponent in this November's election. Lankford said:

“I’m on that Budget Committee. I was one of the authors of that plan. … It’s a good process, if anyone looks at it. It has general headings and general ideas, and lays the specifics out underneath to say ‘here’s how we fix things.’ It deals with issues like our taxes.

“It takes us from a six-tier tax plan to … going back to a 10 percent and 25 percent tax tier. That’s much simpler, much flatter and fairer of a system. It changes our business taxes to 25 percent, so that economically we are able to compete across the world. We have the highest tax rate in the world right now with our business taxes. We can’t compete worldwide with that kind of rate.

“We have to figure out how to do this so that we’re not encouraging our businesses to go overseas with it. So, we’ve got plans not only on the social safety net, not only on our tax rate, but also in real specific ways to be able to get our debt back down and get us back to balance."

As in past interviews, Rep. Lankford expressed frustration over the lack of a budget plan from the U.S. Senate, which is controlled by Democrats. It has been about three years since the upper chamber of Congress submitted a budget proposal.

Lankford reflected, “The Senate has already said they’re not going to do a budget. They are taking last year’s debt reduction deal and that’s a top line number, so we’re going to work from that number with no specifics.

“The problem is, there are two areas. A budget accomplishes not only your number, but also it accomplishes what is the plan.

"Where do we go 10 years from now? How do we get this down? With the Senate saying we have a number and that’s all we need, they’re ignoring the fact that we have $15.6 trillion in debt and no plan to get out of it.

“So, that budget is very important in developing a plan. We hoped the Senate would do it. They’ve already said they’re not going to do it.” The chairman of the Senate Budget Committee has “said they don’t plan to do it again. We’re hoping, obviously, that Americans will turn the Senate over so that we can actually get a budget plan from the Senate, and then have some reconciliation between the House and the Senate.”

Challenging the incumbent in November will be Tom Guild, a Democrat, and two independents: Pat Martin of Jones and Robert T. Murphy of Norman.

Liberal activists make their presence known in Oklahoma City

Sat, 14 Apr 2012 01:07:00 GMT

The Democratic party has faced some tough times in Oklahoma, of late. Still, party leaders are fired up over strong showings in some recent special elections.

This week, a few hundred liberal activists demonstrated outside the National Cowboy Museum when Wisconsin Governor Scott Walker spoke at the Oklahoma Council of Public Affairs (OCPA) annual Citizenship Dinner.

Democrats seem likely to field candidates in at least four of the five congressional districts. And, a variety of events demonstrate liberal activism is alive and well in the Sooner State.

* * *

Oklahoma state Democratic Party officials say space is running out for the 2012 Carl Albert Dinner, the annual fundraising/awards dinner for party activists scheduled for tonight (Friday, April 13).

The Rev. Jesse Jackson has been added as a speaker for the event at the downtown Renaissance Hotel. Speaking of Rev. Jesse Jackson, his visit to Oklahoma originated with a trip to Tulsa to call attention to the shooting deaths of three African-Americans last weekend. Two white suspects are in custody in connection with the murders.

Tonight’s Democratic party event overlaps with a Thunder NBA game, so attendees are being asked to allow plenty of time for arrival.

The party is honoring four, lifelong Democrats at the event. U.S. Rep. Dan Boren of Muskogee and state Senator Judy Eason-McIntyre will share the Carl Albert Award, named for the late Speaker of the U.S. House of Representatives.

Eason-McIntyre, chairwoman of the Tulsa County Democratic Party, will leave the Legislature this year.

Receiving the Opio Toure Award Friday night will be state Sen. Jim Wilson of Tahlequah and Sen. Connie Johnson of Oklahoma City.

The weekend of Democratic events continues Saturday (April 14) with the “Activist Awards Luncheon, where honorees (by Congressional District) include CD 1 - Elaine Dodd, CD 2 - Kenneth Monroe, CD 3 - Anita Normanm CD 4 - Bonnie Koleta Wells and Mark Ashton, and CD 5 - Emily Allen and Jo Davis.

* * *

Also this evening in the capital city, at 6 p.m., friends and family of Dane Scott, Jr. are holding a rally on the east side, at the Ralph Ellison Library, 2000 N.E. 23rd.

Scott died March 14 after a police chase in Del City. He was mortally wounded; some leading African-American activists have called for actions against the police officer who fired the fatal shots. The Del City police investigative report on the incident was turned over the Oklahoma County District Attorney David Prater earlier this week.

* * *

Another activist group, the Oklahoma Coalition to Abolish the Death Penalty, will hold its membership and awards dinner Saturday, April 21 at the Conner Center of the Cathedral of Our Lady of Perpetual Help, 3214 N. Lake Avenue, (one block west of Western), Oklahoma City. The event begins at 6:30 p.m.

Featured speaker is Richard Dieter of the anti-capital punishment group, Death Penalty Information Center, in Washington, D.C. The group describes itself as “a non-profit organization serving the public and the media with analysis and information on issues concerning capital punishment.”

At the dinner, Monsignor Edward J. Weisenburger, recently named bishop-elect of the Salina, Kansas diocese, will receive the coalition’s “Lifetime Abolitionist" award.

* * *

On March 29, as controversy spread nationwide over the shooting death of Trayvon Martin in Florida, hundreds of Langston University students gathered for a campus rally. The event included a march from Page Hall to the area south of Sanford Hall on the campus.

After the march, speakers to the crowd included several students, state Senator Connie Johnson of Oklahoma City and Angelia Jones, vice president of student affairs and enrollment management for Langston. Attendees wore “hoodies,” ate Skittles and drank tea, according to a release from the Langston University office of public relations.

State leaders tout upcoming C-SPAN programming focused on Oklahoma

Sun, 15 Apr 2012 03:35:00 GMT

The cable television industry’s flagship public affairs network, C-SPAN, is concluding a week-long filming and production visit to Oklahoma, a vital stage in preparation of a wide range of programming centered in and around the Capitol area of Oklahoma City.

The programming has state and local leaders excited about the positive images of Oklahoma that will garner nationwide attention later this spring. Included in the programming is information reflective of the highly diverse, and sometimes troubled, history of the Sooner State.

The programs which C-SPAN’s “LCV” (Local Content Vehicle) crew has underway -- focused on Oklahoma -- will air May 5 and 6, on C-SPAN2’s BookTV and C-SPAN3’s American History TV (AHTV).

At a Blue Room press conference touting the programming this week, Governor Mary Fallin was joined by Debbie Lamb, coordinating producer for the LCV Tour, Roy Williams of the Greater Oklahoma City Chamber of Commerce, Percy Kirk, senior vice president and region manager for Cox Communications (the city-area cable provider), Senate President Pro Temp Brian Bingman of Sapulpa and a variety of other officials.

Fallin told Capitol reporters the C-SPAN cablecasts would highlight the state’s “rich history and culture, and very diverse peoples,” and bring new attention to the state’s recent economic strides.

Fallin reveled in the anticipated mention of the widely-remarked “reverse Grapes of Wrath” – that is, the migration of thousands of Californians to Oklahoma in recent years.

Fallin said Oklahoma is becoming “the Silicon Prairie of America” with diversified businesses and continued robust performance in the energy industry. She pointed to the latest cluster of economic trends for Oklahoma, including a 6 percent unemployment rate (second lowest in the nation), second best job creation numbers, number one ranking in manufacturing job growth, fourth best increase in per capita personal income, and the recent ranking of the Oklahoma City metro area as having the fastest economic growth of any large American city.

Kirk, of Cox Communications, said it is hard to imagine a better place to raise a family than Oklahoma. He praised C-SPAN for being “great partners to local cable systems” and said his company was glad to partner with other Cable systems around the state to highlight the upcoming programming. Among those in attendance for the Blue Room event was former House Speaker Loyd Benson of Frederick, now a cable industry executive.

The City Chamber’s Roy Williams noted another recent good news report for the area, in designation of the city as the nation’s most cost-effective place to do business. He named many factors that have contributed to local growth, but observed: “The real credit goes to the voters of Oklahoma City and Oklahoma County.” He praised them for approving $2 billion in local public (tax-financed) expenditures “to make our city better.”

Senator Bingman said the state’s recent economic trends are “the fruits of our labor.”

Fallin presented a gubernatorial commendation to C-SPAN’s Lamb. She told reporters it was “a joy to get out of D.C.” to visit Oklahoma. She said the crew “had a wonderful time” in Oklahoma City – and even got to attend a Thunder NBA game. Lam is the niece of C-SPAN visionary and founder Brian Lamb.

A summary of the scheduled C-SPAN American History TV programming, provided to CapitolBeatOK by Cox Communications, includes these segments:

· Interview with Bruce Fisher, son of Ada Lois Sipuel. Sipuel attempted to enroll at the University of Oklahoma Law School in 1946, helping to the lay the foundation for Brown v. Board of Education.

· Tour the Oklahoma City National Memorial with the memorial’s director, Kerrie Watkins. Watkins explains the history of building the memorial and explains future plans for the memorial to the victims.

· Hear historian Blue Clark explain the significance of Indian relocation to Oklahoma’s history. Clark discusses the tribes that came into the state from across the country, as well as his family’s own relocation experience.

· Interview with Mayor Mick Cornett at Chesapeake Energy Arena about Oklahoma’s professional basketball team, the Thunder, and its impact on the city post-Hurricane Katrina.

· Tour the Oklahoma State Capitol building with tour guide Bill Parks. Learn about the history of the building, and how Oklahoma City became the state’s capital.

· Interview with Oklahoma historian Currie Ballard about his discovery of rare film taken of Oklahoma’s African American communities dating back to the 1920s. Ballard’s remarks are filmed in Langston, a historic African American community where his family has roots.

· Visit Oklahoma University’s Political Communication Center and the Julian P. Kanter Political Commercial Archive to learn how political television commercials have changed over time and hear how political commercials reflect the changing landscape of American politics.

· Interview with Norman Mayor Cindy Rosenthal at the Carl Albert Center. Mayor Rosenthal takes us through the papers of several U.S. Senators and Congressmen as well as talks about Carl Albert, Speaker of the House under Richard Nixon from 1971-77.

· Tour the Oklahoma History Center where we look at rare items in their collection, including a bison skin teepee and one of only two copies of a Certificate of Friendship offered to Indian leaders by Lewis and Clarke.

BookTV programming highlights include these:

· Interview with Full Circle Books owner Jim Tolbert about the literary scene in Oklahoma City as well as the state of the independent book business.

· Hear “Winning the West with Words” author and Oklahoma City University professor James Buss examine narrative, rhetoric and language used by Anglo-Americans to justify westward expansion and the removal of Native Americans.

· Listen to “Race and the University: A Memoir” author George Henderson recount his experience as the third African American professor hired at the University of Oklahoma and the obstacles he had to overcome.

· Interview “A Nation in Transition” author Michael Lovegrove about the story of Douglas Henry Johnston, the governor of the Chickasaw tribe during the critical transitional time of the early 19th century.

· Tour the University of Oklahoma’s Special Collections at Bizzell Memorial Library.

· Interview with “The Triumph of Voting Rights in the South” author Keith Gaddie about the history of voting right in the South and its effect on the current political climate. Gaddie is a professor at the University of Oklahoma.

· Hear Dr. Joe Foote, Dean and Edward L. Gaylord Chair in the Gaylord College of Journalism and Mass Communication at the University of Oklahoma, talk about the state of journalism today and the role it will play in the future.

The Cox system provides C-SPAN programming on these channels:

C-SPAN: 6 and 126; C-SPAN2: 127; C-SPAN3: 128.

The cable system’s public affairs programming channel, C-SPAN, is continuing its “ 2012 LCV Cities Tour.” Producers are travelling in special Ford Transit Connect vehicles, dubbed Local Content Vehicles (LCVs). The first LCV tour was held in 2011.

ALEC study lists Oklahoma 15th best in economic outlook, Fallin writes introduction, group defends itself from liberal attacks

Thu, 12 Apr 2012 22:40:00 GMT

This week, The American Legislative Exchange Council (ALEC) release the fifth edition of “Rich States, Poor States: ALEC-Laffer State Economic Competitiveness Index.” The now-annual study by Dr. Arthur B. Laffer, Stephen Moore, and Jonathan Williams features an introduction by Governor Mary Fallin of Oklahoma.

The purpose of the study, ALEC’s analysts say, is to measure “the competitiveness of state business and tax climates. The publication identifies the policies that have the greatest impact on economic growth, job creation, and interstate migration.”

Reporters were briefed on ALEC’s analysis yesterday in a conference call with authors of the analysis and Indiana state Sen. Jim Buck, chairman of ALEC’s Tax and Fiscal Policy Task Force.

Laffer is a well-known economist and was an author of the income tax phase out proposal under consideration in this year’s legislative session here in Oklahoma. Moore writes for The Wall Street Journal, while Williams works for ALEC’s Center for State Fiscal Reform. Sen. Buck serves as chairman of the ALEC Tax and Fiscal Policy Task Force.

In sum, authors of the ALEC study use these variables to determine the rankings of states:

• Highest Marginal Personal Income Tax Rate

• Highest Marginal Corporate Income Tax Rate

• Personal Income Tax Progressivity

• Property Tax Burden

• Sales Tax Burden

• Tax Burden from All Remaining Taxes • Estate Tax/Inheritance Tax (Yes or No)

• Recently Legislated Tax Policy Changes

• Debt Service as a Share of Tax Revenue

• Public Employees per 1,000 Residents

• Quality of State Legal System

• Workers’ Compensation Costs

• State Minimum Wage

• Right-to-Work State (Yes or No)

• Tax or Expenditure Limits

Based on equal weighting of the factors in the study, Oklahoma emerges in 15th place in state economic outlook rankings. Last year, the state ranked 14th.

Governor Mary Fallin wrote an introduction to this year’s ALEC-Laffer analysis. The Sooner State’s chief executive said in the document:

“In 2010, Oklahoma was just starting to climb out of the national recession that cost our state nearly 80,000 jobs. Like people all around the country, many Oklahomans were struggling. Jobs had disappeared in the wake of a financial crisis that was largely out of our control. Tax revenues were down, and the state was facing a budget shortfall of over $500 million.

“It was with that difficult backdrop that I reached out to our state’s legislative leaders to help me build the best, most competitive economic climate possible. We set about reducing government waste and making state government smaller, smarter, and more efficient. Like many times in our state’s history, we rose to the challenge.

“While many other states were raising taxes in order to close their budget gaps — and driving out jobs in the process — we cut our income tax. We provided relief to working families and spurred economic growth in the private sector. As a result, we have seen a net increase of almost 30,000 jobs in the last 12 months, and our job growth rate ranks in the top ten among all states.

Our unemployment rate continues to be one of the lowest in the country at 6.1 percent.

“And in 2011, Oklahoma ranked first in the nation for the growth of manufacturing jobs, which grew five times faster than the national average.

“All of these successes are the results of the kind of common sense, conservative policies outlined by Dr. Art Laffer, Stephen Moore, and Jonathan Williams in ‘Rich States, Poor States.’

“I have been committed to these fundamental principles for years, and we are seeing incredible results because our legislators have had the courage to stand with me in support of conservative governance.

Oklahoma’s economy is outperforming the national economy, and our success stands in stark contrast to the record of dysfunction, failed policies, and outrageous spending that occurs in Washington, D.C.

“Oklahoma could teach Washington a lesson or two about fiscal policy and the proper size and role of government — and so could the tax and fiscal policy reforms espoused by ALEC.

“Our growth as a state stands as a testament to the fact that low taxes, limited government, and fiscal discipline are a recipe for job creation. But our work is not done.

Based on the success we have enjoyed enacting pro-growth policies like those championed by ALEC, our state is moving forward with a bold tax reform plan that will represent the most significant tax cut in state history and chart a course towards the gradual elimination of the state income tax.

It will give Oklahoma one of the lowest overall tax burdens in the entire country, making us a more competitive state for those looking to move jobs here.

“This is the conservative centerpiece of our pro-jobs agenda that will let working families keep more of their hard-earned money and provide a higher quality of life for all Oklahomans.

“My advice to state officials around the country is to get to work enacting these policies, or get ready to help your friends pack as they and their jobs get moving to Oklahoma!”

In other news, Ron Scheberle, Executive Director of ALEC, sent CapitolBeatOK the following statement, describing what he characterized as “a surge of support” in the wake of what his group called an “intimidation campaign” against ALEC members. Scheberle said:

“Over the last 24 hours, ALEC has been inundated with letters of support from elected officials, community leaders and concerned citizens in response to the intimidation campaign launched by a coalition of extreme liberal activists committed to silencing anyone who disagrees with their agenda.

“I am thankful for the support and want to take this opportunity to remind people what we are facing:

“First, the people now attacking ALEC and its members are the same people who have always pushed for big-government solutions. Our support for free markets and limited government stands in stark contrast to their state-dependent utopia. This is not about one piece of legislation. This is an attempt to silence our organization and it has been going on for more than a year.

“Second, ALEC is one of America’s premier ideas laboratories when it comes to advocating free market reforms. We are a target because our opponents believe they have the opportunity to attack an effective, successful organization that promotes free-market, limited government policies that they disagree with. We work to promote the Freedom of Choice in Health Care initiative against ObamaCare’s individual mandate. We support fair tax policies and tort reform. This is an all-out intimidation campaign designed to promote government-based solutions rather than the free-market principles that we have seen work.

“Finally, now more than ever, America needs organizations like ALEC to foster the discussion and debate of policy differences in an open, transparent way and not fall back on bullying, intimidation and threats

General Revenue remains strong, sales taxes growth by double digits again

Fri, 13 Apr 2012 00:03:00 GMT

March collections to the General Revenue Fund indicate strong economic activity is ongoing in Oklahoma, with sales taxes climbing by double digits for the third month in a row.

“Consumer confidence in Oklahoma is still riding high,” said Preston Doerflinger, secretary of finance and revenue in Governor Mary Fallins cabinet. “This string of unusually strong sales tax receipts is perhaps the best evidence of the state’s economic recovery from the national recession.”

Other signs include the rise in manufacturing jobs over a protracted period, rising wage levels and a relatively low unemployment rate, down to 6 percent, more than 2 percent below the national jobless rate.

“There is a real sense of optimism from Oklahomans who recognize and understand the governor’s efforts to cut taxes and modernize state government,” Doerflinger said.

January sales tax receipts hit $165 million, a record for any month ever in Oklahoma. In February, sales taxes came in strong at $145 million and in March the total was $150.9 million, which was 16.8 percent more than the same month in 2011, while beating the official estimate by 11.1 percent.

Total gross production taxes fell off in March because of legislation redirecting $92.6 million in “surplus” oil revenue from the General Revenue Fund to other areas. Almost $34 million of oil revenue is being sent this month to the state Department of Education for health benefits. Oil funds will also go to specified programs in May and June.

“Without this $34 million diversion, oil revenue would have largely offset continued weakness in natural gas receipts due to low prices, as has been the case throughout this fiscal year” Doerflinger said.

“We are just now seeing the effects on state revenue of natural gas prices falling below $3 per million British thermal units a couple of months ago,” Doerflinger continued. “We expect this slide will continue as gas prices have hovered below and just above $2 in recent weeks.

“On a positive note, the oil patch continues to generate economic benefits for the state as energy companies use enhanced recovery techniques to drill for high-profit oil. Oklahoma’s rotary rig count rose above 200 this month, an increase of about 40 rigs from a year ago.”

Governor Mary Fallin welcomed the latest General Revenue Fund report, saying: “Oklahoma’s strong sales tax collections, low unemployment rate and sustained job growth show that our economy continues to recover and grow quickly. While gross production revenue has fallen due to a variety of circumstances, it is clear the state is continuing on an upward trend. Moving forward, it’s important to build on that momentum by continuing to pursue smart policies that will help to create jobs, including tax reduction.”

Secretary Doerflinger said he is optimistic the state will continue to trend upward economically and that collections in other areas will counter balance losses to the GRF from depressed natural gas prices, which were set up by an abnormally warm winter.

“We don’t want to minimize the possibility that our economy will be adversely affected if natural gas prices continue to be abnormally low well into the next fiscal year because of oversupply, Doerflinger said. “We can’t predict the future. All we can do is to pursue sound economic policies and hope that events nationally and internationally do not hamper our progress in Oklahoma.”

Total collections to the General Revenue Fund through the first three quarters of FY-2012 were $3.9 billion. This amount was $400.4 million and 11.3 percent above collections for the first nine months of FY-2011 and $340.7 million, or 9.5 percent above the total estimate for the same period of FY-2012. If the $34 million in redirected oil taxes had been included, year-to-date collections would be 12.3 percent above the prior year and 10.4 percent higher than the estimate.

In March, total collections for the General Revenue Fund without the diverted oil revenue were $434.4 million, a decrease of $4.1 million and 0.9 percent from a year ago. The amount collected for the month was $6.4 million and 1.5 percent less than projected.

If oil revenue was included, totals for the month would be 29.9 million or 6.8 percent above last year and $27.5 million or 6.2 percent above the estimate.

Major tax categories in March (not including oil revenue) contributed the following amounts to the General Revenue Fund:

Income taxes – The total collected from individual and corporate income taxes in the month of March was $177.2 million for the FY-2012 General Revenue Fund, which was $14.6 million or 9 percent more than prior year collections and $36.7 million or 26.1 percent above the estimate.

Individual income tax receipts of $114.4 million were $19.2 million and 20.2 percent above the prior year and $19.1 million or 20.1% above the estimate.

Corporate tax collections contributed $62.8 million to the General Revenue Fund for the month, which was $4.6 million or 6.9 percent below March 2011 collections and $17.5 million or 38.8 percent above the estimate.

Sales tax -- Sales tax collections in March produced $150.9 million for General Revenue Fund, which was $21.7 million or 16.8 percent more than the prior year and $15.1 million or 11.1 percent above the estimate. Total collections for this source over the first three quarters have exceeded the prior year by 9.8 percent and the estimate by 4.1 percent.

Gross production tax – Because all oil collections were diverted this month, the only gross production tax collections to the General Revenue Fund in March were from natural gas. The total collected from that source was $17.7 million. This total was $51 million and 74.3 percent below combined oil and gas collections for the same month of the prior year and $59.8 million or 77.2 percent below the estimate.

Even with this month’s oil revenue being redirected, the total gross production collections for the first three quarters of fiscal year 2012 have exceeded the prior year by $42.3 million or 12.9 percent and have outpaced the estimate by $38 million or 11.4 percent.

March tax collections from natural gas were down 37.2 percent from gas collections a year ago and missed the estimate by 44.4 percent.

Motor vehicle taxes -- This tax source produced $19.7 million from March collections, which was $2.2 million or 10 percent below the prior year and $3.2 million or 13.9 percent below the estimate after exceeding both the prior year and estimate last month. Total motor vehicle tax collections for the first three quarters of the fiscal year have exceeded the prior year by 14.3 percent and the estimate by 2.4 percent.

Other Revenue -- Other revenue produced $69 million in March. This was $12.8 million or 22.8 percent above the prior year and $4.8 million or 7.4 percent above the estimate.

Funding for OETA an issue as last seven weeks of session begin

Tue, 10 Apr 2012 10:04:00 GMT

To The Editor:

We are heading into the second half of the legislative session, with only seven weeks remaining until adjournment. Last week was the deadline for single-assigned House bills. Thursday, April 12, is the deadline for double-assigned bills, which are those bills that will have both a policy and fiscal impact.

Fortunately, we are ahead of schedule, and there are only two more double-assigned House bills to be considered in the Finance Committee. This means we will be able to spend a majority of next week on the Senate floor working on those House bills that survived the arduous committee process.

Not surprisingly, some intense debate has occurred at the State Capitol on a couple of different issues this year, including over whether to decrease or completely cut funding altogether to the Oklahoma Education Television Authority (OETA). This was one of many ideas suggested ostensibly to help save the state money.

This bill (House Bill 2236) had strong support in the Legislature, especially in the House of Representatives (where it was introduced). H.B. 2236 would authorize OETA to continue functioning as a state agency until 2016, when the issue would then be reevaluated. This is something that happens every four years for OETA and some other smaller state agencies and commissions.

But the bill did not have strong support in the Senate. The bill originally came up for a vote in the Senate General Government Committee on March 26, resulting in a vote of 4-4. If a vote ties, then it fails. The Senate President Pro Tempore then authorized a suspension of the rules to allow for a second vote this past week. One of the members switched from a no to an aye, allowing the bill to pass by a vote of 5–3.

The member who changed his vote said he would vote against an appropriation for OETA when the Senate votes on the General Appropriations bill later this month or next month. OETA was appropriated $3.8 million last year and raises around $8 million privately each year.

OETA plays an important role in educating Oklahomans about their state government, among many other issues. For years, OETA was the only TV station that had a full-time reporter at the State Capitol during session. Given that the legislature considers nearly 2,000 bills each year, I think it is important that the public be able to learn about those measures. Due to budget cuts, OETA does not have a full-time reporter at the Capitol any longer, but they still provide more coverage of legislative issues than any other TV station in the metro area.

Many of you have also probably watched the Oklahoma News Report (ONR). This is the only statewide newscast that reaches all 77 counties. Prior to budget cuts in years past, this used to be a nightly program with extensive stories on that day’s most important legislation. OETA still covers the most important legislation, but the program now appears only weekly.

OETA realized years ago that there were several counties around the state that did not have access to any Oklahoma government news because no local TV station covered their area. So these citizens received only news about the Texas legislature or those of surrounding states. Once ONR was created, all Oklahoma citizens had access to in-depth coverage of their state government.

The debate continues as to whether OETA needs state funding (given how much they are able to raise in private funds) but there is no question as to the importance the station plays in keeping the citizens of Oklahoma informed about their state government. It is a service that no other TV station in the state has the resources or ability to provide.

Senator Al McAffrey

Note: Senator McAffrey represents much of central Oklahoma City at the state Capitol.

Sue Tibbs to be honored in state House memorial service on Thursday

Thu, 12 Apr 2012 23:26:00 GMT

Floral Haven Funeral Home in Broken Arrow has released details of services for state Rep. Sue Tibbs of Tulsa, who on Friday night (April 5) died at the age of 77 after a long fight with cancer.

Tibbs’ funeral will be Wednesday (April 11) at 2 p.m., Grace Church, 9610 S. Garnett Road in Broken Arrow. Burial will follow at Floral Haven Cemetery in Broken Arrow.

A memorial service, open to the public, will be held in the House chamber at 1 p.m. Thursday (April 12). Tibbs’ designated two charities for memorial gifts: Coweta’s Free in Christ Ministries, and Tulsa’s Women in Recovery (Family & Children’s Services).

Tibbs’ support for Women in Recovery put her on the frontlines of policy transformation in Oklahoma.

In her last interview with CapitolBeatOK, Tibbs said she was intensely focused on “the prison reform area. Being able to recognize that some people have made mistakes and wish to have a second chance, giving them that opportunity and truly seeing these programs work, changing lives for whole generations.”

Tibbs was a leading advocate of criminal justice reform, including the package of “reinvestment” proposals aiming to provide alternatives to incarceration for non-violent crimes, drug treatment and diversion for addicts, and guaranteed post-incarceration supervision.

A wave of tributes to the six-term Republican legislator spanned the spectrum of party and political philosophy over the past few days.

House Minority leader Scott Inman, a Del City Democrat, reflected that Rep. Tibbs “cared deeply about the people of her district and the people of Oklahoma. I have immense respect for her and her record of service. … I am reminded that Rep. Tibbs was devoted in her daily walk with Christ, and in her passing I pray that the Lord will grant peace and comfort to all she leaves behind.”

Republican state party chairman Matt Pinnell, also from Tulsa, said, “You never had to wonder where Sue stood on an issue, and I respected that. Sue represented the people of District 23 well, and she will be greatly missed."

Governor Mary Fallin commented, Tibbs was “an influential and important figure at the State Capitol, and she will be remembered for the hard work and dedication she brought to her position as a legislator.”

House Speaker Kris Steele, who has said he considered Tibbs both a friend and a mentor, said in a statement sent to CapitolBeatOK, “Sue Tibbs was as dedicated and determined a person as you’ll ever meet. She was an incredibly effective, fair legislator who was widely admired for her strong sense of conviction and faith. Her determination was most evident as a passionate champion in the areas of corrections reform and voter identification in which her legacy will be forever evident. She was our colleague, but to many of us, she was the kind of friend anyone would like to have.

“Sue never complained or allowed her illness to get in the way of her service to the people of Oklahoma. She and I were elected together and often talked about finishing our term together. Serving alongside her was one of the great joys of my time in the Legislature. She is an amazing individual who touched and changed my life and the lives of many, many others. She will remain with us in spirit and her presence and influence will be evident for years to come. The thoughts and prayers of the entire House of Representatives are with her family and friends during this difficult time.”

Elected in 2000, Tibbs was part of the last group of House Republicans to have served before the GOP gained majority status in the lower chamber.

Note: Two photos with this story were provided by Peter J. Rudy of Oklahoma Watchdog. One taken in March shows House colleagues from both parties praying for Tibbs’ healing during one of her last days in the House chamber. A second photo taken Monday (April 9) is of the Oklahoma flag, draped over her now-empty chair in the House Chamber. Two other photos posted here show Tibbs at a Women in Recovery graduation ceremony held last year.

Candidates will crowd the Capitol beginning Wednesday

Tue, 10 Apr 2012 19:46:00 GMT

Oklahoma Candidates for state and federal elected offices will begin filing tomorrow (Wednesday, April 11). Filing will continue Thursday and Friday on the second floor of the state Capitol in the former offices of the Oklahoma Court of Criminal Appeals. Filing each day is from 8 a.m. to 5 p.m.

CapitolBeatOK and other news organizations will be on hand to watch the filing process and interview many of this year’s hopefuls.

Officials presume Wednesday will see two-thirds or more of all this year’s candidates file. However, Election Board Secretary Paul Ziriaz notes that in past years candidate filing was much later in the year and took place on Mondays, Tuesdays and Wednesdays.

Ziriax is not certain what effect, if any, the change in schedule will have on candidate filings. In 2000, 313 people filed for office; 412 filed in 2004; 296 filed in 2008, the most recent presidential election year.

This is a comparatively “quiet” election year below the presidential level. There is no U.S. Senate race in Oklahoma, but all five U.S. House seats may be contested. The most lively race could come in the Second Congressional District, where incumbent U.S. Rep. Dan Boren is not seeking reelection.

In addition to the presidential contest, two state Corporation Commission seats are up for election, including a full six-year term for the position now held by Bob Anthony, and a “short-term” for Patrice Douglass, who was appointed when incumbent Jeff Cloud left office early.

All 101 state House seats (for two-year terms) are up; the 24 odd-numbered districts in the state Senate are also subject to election, for four-year terms.

In November, several key judicial positions will be subject to retention (Yes/No) elections. This will include four state Supreme Court posts, three Court of Criminal Appeals positions, and five judges on the Court of Civil Appeals.

Additionally, a large number of county offices are open to filings at the county election board level.

Filing has been moved, as have elections themselves, to accommodate federal requirements that members of the U.S. military have adequate time to get absentee ballots processed. Analysts speculate the early filing (and earlier election days) could lead to pressure on legislative leaders, from incumbents, to end the session before the required Friday, May 25 adjournment.

Filing fees range from $200 to $750, depending on the job being sought.

Early voting (or “in-person” absentee voting), which has been popular with many Oklahomans, will be available for all the elections.

This year’s partisan primaries will be held Tuesday, June 26. Qualified independents who file gain ballot status and do not have a primary.

A new wrinkle in this year’s election is that in addition to the Republican and Democratic parties, the new “Americans Elect” party will have a ballot line in November – and conceivably could have contested primaries even though there were, as of early this month, no registered members of that party. The new party plans to hold an online “convention” this summer to pick a presidential and vice presidential candidate.

Oklahoma’s two major parties held presidential primaries in March.

The last day to register to vote for the primary will be Friday, June 1; with absentee ballot requests due by Wednesday, June 20. Early voting will be available from 8 a.m. to 6 p.m. Friday June 22 and Monday, June 25; and from 8 a.m. to 1 p.m. on Saturday, June 23.

Runoffs, when required, will be held Tuesday, August 28. The last date to register for participation in that election will be Friday, August 3; absentee ballot requests must be submitted by Wednesday, August 22. Early voting will be Friday, August 24, Saturday, August 25 and Monday, August 27 (hours the same as for the primary).

The general election is slated for Tuesday, November 6. Early voting will be Friday, November 2, Saturday, November 3, and Monday, November 5 (hours the same as for the primary and runoff).

Editor’s Notebook: Republican governors to visit, Democrats honor Dan Boren and Eason-McIntyre at Carl Albert Dinner

Tue, 10 Apr 2012 20:06:00 GMT

From an editor’s notebook, guess who’s coming to dinner(s)?

Governors Scott Walker of Wisconsin and Bobby Jindal of Louisiana will visit Oklahoma – Walker tomorrow night (April 11) and Jindal next month – while state Democrats plan to honor a quartet of elected officials at the Friday (April 13) Carl Albert Dinner.

* * *

Scott Walker, chief executive of Wisconsin, may at the moment be America’s most controversial governor. His push for shifts in labor policy, especially in terms of government sector unions, made him the target of a high-powered (and funded from across America) recall petition drive.

Walker -- narrowly losing the recall in a recent statewide survey -- will be in Oklahoma City Wednesday night for the annual Citizenship Dinner at the National Cowboy Museum in Oklahoma City, sponsored by the Oklahoma Council of Public Affairs (OCPA).

Walker’s push to balance the Wisconsin state budget and curb the dominance of public sector unions led to a high stakes battle between fiscal conservatives and government sector unions. The Wall Street Journal has said the battle over union power has become “a national multimillion-dollar war that will reverberate through the presidential and congressional races this fall."

Despite trailing by a few percentage points in the polling, analysts have not counted out the first-term governor, noting he has time to make up ground before the recall vote in two months.

In a Rasmussen Poll anticipating the June 5 recall election, the overwhelming majority of Wisconsin Democrats supported ousting Walker from office, while the vast majority of the state’s Republicans supported him.

* * *

A quartet of lifelong Democrats will be honored at the annual Carl Albert dinner this Friday, sponsored by the state Democratic Party.

U.S. Rep. Dan Boren of Muskogee and state Senator Judy Eason-McIntyre will share the Carl Albert Award, named for the late Speaker of the U.S. House of Representatives.

Currently the only Democrat in the Oklahoma congressional delegation, Boren announced last year he would not seek reelection. He is the son of University of Oklahoma President David Boren, and grandson of the late U.S. Rep. Lyle Boren.

Eason-McIntyre, chairwoman of the Tulsa County Democratic Party, will leave the Legislature this year.

Receiving the Opio Toure Award Friday night will be state Sen. Jim Wilson of Tahlequah and Sen. Connie Johnson of Oklahoma City.

Party officials this week said, in an email to CapitolBeatOK, that Alice Germond, secretary of Democratic National Committee, will also be at the Carl Albert Dinner.

* * *

When the Oklahoma Republican party has its state convention May 11 and 12 -- with the theme “Red State Ready” -- the keynote speaker will be Louisiana Governor Bobby Jindal, the first American governor in history whose ancestors came from India.

Concerning the popular chief executive of the Cajun State, Oklahoma Republican Party Chairman Matt Pinnell said Jindal “is a young, dynamic leader that will play a role on the national stage for years to come."

Col. Michael Steele (U.S.A., ret.), a veteran of the Somalia operation immortalized in the film, “Black Hawk Down,” will be breakfast speaker for the state GOP, Pinnell said. Anita MonCrief, who gained national attention as the “whistle-blower” on ACORN voter fraud in 2008, will be the convention luncheon speaker.

Mr. Papahronis Goes to Washington

Sat, 07 Apr 2012 18:21:00 GMT

Representing Oklahoma in the National Geographic Bee next month will be Edmond seventh grader Ari Papahronis. But before the Sequoyah Middle School student sets off for the Nation’s Capitol, he made a stop at the State Capitol.

Tuesday, April 3, Ari and First and Second Runners-up in the Oklahoma National Geographic Geography Bee were recognized and honored in the state House of Representatives, and by Governor Mary Fallin.

On March 30, about 100 fourth to eighth graders in each of the 50 states, D.C., U.S. territories and Department of Defense Dependents Schools faced off during the National Geographic state level bees. The Oklahoma Bee was held in the Memorial Union on the University of Oklahoma Campus.

Mr. Papahronis, First Runner-up Kellie Dick, a seventh-grade student from Grove School in Shawnee and Second Runner-up Benjamin Bottger, a sixth-grader from Edmond Home Educators all received proclamations from their state Representatives (Kris Steele of Shawnee for Kellie, Lewis Moore of Arcadia for Ari, Guy Liebmann of Oklahoma City for Bottger).

Since the first National Geographic Bee in 1989, millions of students have competed each year for a U.S. $25,000 college scholarship and the honor of being national champion.

The champions have come from diverse backgrounds—ranging from large cities to family farms. They have had varied interests and today are pursuing different educational paths. Among their shared characteristics are the desire to excel and an inherent curiosity about geography and the world around them.

The 54 winners will be competing at the May 22-24 championship in Washington, D.C.

Fallin and Lopez unveil optimistic business survey, applaud Google expansion

Sat, 07 Apr 2012 18:39:00 GMT

This week at the state Capitol, Governor Mary Fallin joined Commerce Secretary Dave Lopez and designers of a survey of business leaders to celebrate findings that can only be characterized as indicating great optimism among key private sector decision makers.

Lopez told reporters survey results show Oklahomans in the entrepreneurial class are “far ahead of national projections in the essential areas of business optimism.” Specifically, 78 percent of the nearly 5,400 business leaders who participated in the online survey, designed by Reliant, described themselves as optimistic abou the future of business in Oklahoma – including confidence their own businesses will grow.

Additionally, 37 percent of the executives (ranging from small employers to the state’s biggest firms) expect to hire additional workers within the next year (compared to 28 percent in national surveys). Perhaps most significantly, 69 percent plan to expand their workforces over the next three years.

Most new jobs are created from existing businesses, giving some heft to the assessment of Oklahoma’s business people.

There are some limits to the utility of the data, in that participants were self-selected, going online to complete the lengthy questionnaire. However, people from all 77 counties participated. Lopez and his colleagues estimated the companies that participated represented 20 percent of the state’s total workforce.

A summary prepared by Commerce staff asserted, “The margin of error for questions in the report ranges from 0.9 percent to 1.6 percent, which is a 95 percent confidence interval. Percentages of respondents are similar to state breakdowns for industry, number of employees and geographic dispersion.”

In a sometimes lively exchange with reporters, Lopez said the data and the representativeness of the sample can be developed over time to provide a running assessment of business leadership sentiment.

The surveyed leaders said access to supplies, quality of higher education, CareerTech workforce prep programs, highly affordable housing in the state and recreational opportunities for workers were among the state’s positives.

Workers compensation costs remain a concern for the business leaders, who also say they want business incentives and public funding to remain in place – the latter a potential challenge for policymakers who also want to keep expenditures limited.

Governor Fallin applauded the results in a 15-minute address, touting among other things the creation of four new positions in the workers compensation court. The full Commerce Department survey and other information is online at FallinForBusiness.com.

The same morning as the Commerce data was released, Fallin and Lopez welcomed officials with Google to celebrate the worldwide information firm’s decision to roughly double its capacity and eventually its workforce at the MidAmerica Industrial Park in Mayes County.

The facility will go from 100 workers to more than 150. Fallin said, “Google’s decision to increase the size of their data center in Mayes County highlights the attractiveness of our state as a place to invest and do business. As a global company recognized for creating innovative online tools that help businesses and individuals succeed, Google has found a technical workforce with a strong work ethic in Oklahoma, one equal to the task of operating their data center in Pryor. Moreover, Google’s substantial investment, one of the largest in our state’s history at more than $700 million, represents a major step in further diversifying our state’s economy and ensuring Oklahoma plays a large role in the ever-emerging tech industry.”

Joining Fallin and Lopez for the announcement were Senate President Pro Temp Brian Bingman of Sapulpa and House Speaker Kris Steele of Shawnee. Legislators from the Mayes County area attended, including Senate Minority Leader Sean Burrage of Claremore and Reps. Chuck Hoskin of Vinita and Ben Sherrer of Pryor Creek.

Representing Google were Mike Wooten, the data center operations manager, and Alex Abelin of the firm’s executive team. Google plans to add a number of amenities at the site. The site will continue to operate “24/7” to support Google’s worldwide systems.

In a brief exchange with CapitolBeatOK, the Google executives noted the Oklahoma site is the only one in their company with a mechanical bull onsite for occasional employee recreational time.

Gov. Mary Fallin Delivers Weekly Republican Address

Sat, 07 Apr 2012 18:40:00 GMT

OKLAHOMA CITY –In the nationwide Weekly Republican Address, Oklahoma Governor Mary Fallin says the energy crisis facing America isn’t caused by a lack of energy resources, but rather stems from a lack of leadership that starts “at the top” with the President. “America remains dependent on foreign oil from unstable and anti-Western regimes, and yet the President is blocking the pipeline that would transport oil to the United States from our neighbor and ally—Canada,” she said.

Fallin continued, “Millions of Americans remain out of work, but President Obama continues to propose job-killing tax hikes and obstruct the basic energy infrastructure projects that would lead to the creation of thousands of new jobs, not to mention more revenue in state budgets.”

A full transcript of the address follows:

“Hi, I'm Governor Mary Fallin from the Great State of Oklahoma.

“As you may know, Oklahoma is an energy state. Nearly one in seven jobs are supported by the oil and natural gas industry. And with our tremendous potential for expansion in wind power, we are also moving forward in the area of cutting edge, renewable energy.

“Energy production has long been an important part of our history, and our economy has benefitted tremendously from the health of the energy sector. Oklahoma has one of the lowest unemployment rates in the nation, at 6 percent. We are the number two state in the nation for job creation in the last 12 months and in 2011 our citizens experienced the 4th highest per capita income growth in the United States.

“We recognize that the energy industry is a valuable ally as we seek to create jobs and stimulate the economy, and that's why Oklahoma Republicans continue to support the production of all kinds of energy resources.

“Our pro-energy policies stand in stark contrast though to the policies supported by President Obama and the Washington Democrats, who seem to view American-made energy as a hazardous waste rather than a resource.

“Last month, the President made his first visit to Oklahoma since being sworn into office.

“While he was here, he made some interesting claims.

“We were surprised to hear the President say he supports an ‘all of the above’ energy policy.

“Well, this is the same President whose party pushed a ‘cap and trade’ plan that would dramatically raise taxes on energy producers. Those tax increases would discourage energy production, drive up gas prices and utility costs for American families and destroy thousands of jobs.

“While he was in Oklahoma, President Obama also surprised us by taking credit for the southern leg of the Keystone pipeline—an important project that will allow Oklahoma energy producers to get their product to the market in the Gulf Coast.

“The only problem is... the southern leg of the pipeline didn't need the President's approval. It was already in the works.

“Here's another inconvenient truth the President avoided: his administration is continuing to hold up construction on the northern leg of that pipeline—a project that would have created thousands of jobs and over a billion dollars in private investment. This from a President who says his number one focus is jobs.

“Finally, President Obama made the outrageous claim that his administration is responsible for the national increase in domestic drilling.

“Well, here's the truth: drilling is increasing in the United States... on privately owned land. We have the ingenuity and the hard work of the American men and women in the private sector to thank for that.

“On public land, which President Obama is responsible for, drilling is rapidly decreasing. In fact, leases issued by the Bureau of Land Management are now less than half of what they were under former President Bill Clinton.

“And because of the severe limitations the President has put on drilling, especially offshore drilling, that number will continue to fall.

“The bottom line is this administration is taking credit for American energy production while it works to aggressively undermine it.

“Besides being hypocritical, the President's double-talk is dangerous to our economy and our national security.

“We know that families, already struggling in this poor economy, are feeling pinched by rising costs at the gas pump.

“America remains dependent on foreign oil from unstable and anti-Western regimes, and yet the President is blocking the pipeline that would transport oil to the United States from our neighbor and ally — Canada.

“Millions of Americans remain out of work, but President Obama continues to propose job-killing tax hikes and obstruct the basic energy infrastructure projects that would lead to the creation of thousands of new jobs, not to mention more revenue in state budgets.

“It doesn't have to be this way. The energy resources in the United States are enormous.

“In fact, shale deposits in the United States contain enough natural gas alone to power this country for another 100 years.

“Let’s be clear—the energy crisis we are facing today isn't a lack of energy resources; it's a lack of leadership. That starts at the top, with our President.

“Americans are paying the price for his failed policies—finding fewer jobs, higher gas prices, and less opportunity.

“Republicans have a better way. Across the nation, Republicans are supporting all kinds of domestic energy production and the jobs that come with it.

“The American people deserve an energy policy that creates a stronger economy, more jobs and opportunity, and the security that comes with American Energy Independence. We're working hard to give them one.

“Thanks for your time, and of course, have a wonderful Easter weekend.”

State Rep. Sue Tibbs of Tulsa passes away

Mon, 09 Apr 2012 19:02:00 GMT

Republican state Rep. Sue Tibbs of Tulsa has died after a lengthy illness. CapitolBeatOK was informed of her death by a close friend who visited the highly respected member of the Oklahoma Legislature yesterday (Thursday). Tibbs died shortly after 9 p.m. Friday evening.

Chairwoman of Public Safety and a key player on the Appropriations & Budget Human Services subcommittee, as well as General Government and Judiciary, Tibbs was a trailblazer for other Republican women, and women in general.

In her first race, back in 2000, Tibbs defeated a popular Democratic incumbent, Betty Boyd. Eventually, the Republican made the district her own, winning reelection easily in both 2008 and 2010.

In an interview three weeks ago with CapitolBeatOK, Tibbs was asked to list her most significant achievements in public life. She replied, “My most significant achievement, I believe, is being able to serve my constituents on a daily basis.”

Another success was her long marriage to Milton Homer Tibbs. They have two children: Debra West and Elli Dodd.

Unsurprisingly, Tibbs was a leading advocate of criminal justice reform, including the package of “reinvestment” proposals aiming to provide alternatives to incarceration for non-violent crimes, drug treatment and diversion for addicts, and guaranteed post-incarceration supervision.

Tibbs was part of the last group of Republicans to have served in the minority at the state House.

One friend is a leading Democrat, Senator Jerry Ellis of Valliant. Last month, Ellis told CapitolBeatOK, “She was so easy to work with in the House, and we did so for six years. I was in the majority there for two years, and then in the minority for four years, before I came to the Senate. She is one of those people for whom party affiliation did not enter into it. It was always just the issue with Sue Tibbs.”

State Rep. Pam Peterson, also from Tulsa, said at that time, “When she speaks on the floor, everybody listens. She is greatly respected. She’s not flashy. She speaks very intentionally. She has power and influence because of who she is. The tenacity of the woman is just incredible.”

She was a friend and mentor to House Speaker Kris Steele, who told CapitolBeatOK she was “a true public servant” who understood state issues and cared deeply about the needs of her constituents.

Oklahoma’s Tax Freedom Day is April 8, Tax Foundation analyst says

Sat, 07 Apr 2012 03:20:00 GMT

Joseph D. Henchman of the Tax Foundation told a gathering of state officials and tax analysts that this Sunday (April 8) will be Oklahoma’s “Tax Freedom Day.”

The foundation’s vice president, Henchman spoke at a state Capitol meeting sponsored by the Oklahoma Council of Public Affairs (OCPA) in Oklahoma City.

In an interview with CapitolBeatOK, Henchman said every state has unique characteristics, making him reluctant to designate a single model state when it comes to tax policy.

He reflected, “Every state is different, with different strengths and weaknesses. California has Hollywood, West Virginia has coal, Florida has sunshine, Oklahoma has energy. Their tax policies to some extent represent their strengths and their weaknesses. You could not apply New York City policies here in Oklahoma; you have to have an Oklahoma policy that best suits the state’s needs.”

Asked what he thinks of the income tax phase out proposed by OCPA and included in an econometric analysis by Dr. Arthur Laffer, Henchman commented, “Well, simpler is better. Simplification is something everybody should be for in tax policy. A system that focuses on raising revenue and not on changing behavior – on encouraging people to be productive, not on manipulating the tax code – is best.

“Of course, how it is paid for is an important question. Do you cut spending or find new revenue sources? It is important to keep in mind that you cannot deny the importance of competition among the states. When a business has a choice to make, between coming to Oklahoma or to Texas, what do you say to them when you want them to choose Oklahoma?”

In the latest Tax Foundation analysis, National Tax Freedom Day falls on April 17, 2012. CapitolBeatOK asked why Oklahoma had, among the 50 states, moved from 41st to 39th. Henchman replied, “A lot of that was driven by federal tax payments. Over time, the trend in all of the states has been they are sending more and more money to Washington, D.C.

“There was a blip in that trend due to the Recession, that is, less was going to D.C. But Oklahoma did comparatively better in terms of most economic factors, so a lot of your money still went to Washington, and your overall tax burden ranking increased.”

The interview concluded with a broader question of tax policy analysis: What do most people miss or not quite understand in looking at tax policy?

Henchman thought for a moment, then responded: “That is a really good question. I’ll answer this way. First, how much money do you want to raise? That requires asking what should government be doing, and what’s the priority or priorities in use of that money? You should ask how big should the state government be. That leads you to ask what should the state do, and what should the local governments do?

“Second, how do you raise tax money? There are different ways to raise a dollar of revenue. Some can be harmful. Some can be very beneficial in comparison to others. Economists by and large have the view that taxing investment and productivity, such as with an income tax, can be more harmful than taxing spending or consumption, such as with a sales or property tax.”

The foundation defines Tax Freedom Day as “that day that residents of that state have worked long enough to pay off all tax obligations at the federal, state and local levels.”

The foundation lays out its methodology as follows: “We count in the denominator every dollar that is officially part of national income according to the Department of Commerce’s Bureau of Economic Analysis, and in the numerator every payment to the government that is officially considered a tax is counted. Taxes at all levels of government are included, whether levied by Uncle Sam or state and local governments.

“In calculating Tax Freedom Day for each state, we look at taxes borne by residents of that state, whether paid to the federal government, their own state or local government, or governments of other states. Where possible, we allocate tax burdens to the taxpayer’s state of residence. Leap days are excluded to allow comparison across years, and any fraction of a day is rounded up to the next calendar day.”

For more information from Henchman’s organization, visit here:

Editor's Note: In addition to this exchange with Mr. Henchman, CapitolBeatOK conducted video interviews with David Blatt, Steven Anderson and Travis Brown. The exchange with Brown is posted with this story, or can be viewed on YouTube here ...

Oklahoma Policy Institute speakers slam Laffer study, oppose income tax phase out

Sat, 07 Apr 2012 01:03:00 GMT

Oklahoma Policy Institute today (Thursday, April 5) hosted a two-hour seminar criticizing proposals to reduce or eliminate state income taxes. The event was dubbed, “Eliminating the Income Tax: Silver Bullet or Fools’ Gold.”

Several economists spoke to a large crowd of citizens, lobbyists, reporters, and government employees at the Oklahoma History Center. The group had fundamentally different views from those expressed at a state Capitol meeting (also held today) at which Joseph D. Henchman of the Tax Foundation spoke, along with the Kansas budget director and a Missouri tax reduction activist.

Several legislators attended, including Democratic state Rep. Joe Dorman of Rush Springs, Emily Virgin of Norman, Richard Morrissette of Oklahoma City, and Justin McDaniel of southeastern Oklahoma’s District 1. State Auditor & Inspector Gary Jones, a Republican, also attended the meeting.

Deidre D. Myers, an analyst with the Oklahoma Department of Commerce, presented data showing Oklahoma has the nation’s second best year-over-year growth rate, the best national manufacturing growth rate, the eleventh best unemployment rate, growth in per capita personal income, poverty issues, and challenges in economic attainment.

The premise of the presentation by Dr. Kent Olson, Emeritus Economics professor at at Oklahoma State University, is that a phase out of the income tax would mean the state is “digging a deeper hole.” He posited, by the year 2032, a $2.6 billion state budget deficit if an income tax phase out measure is enacted, a projected $4.8 billion in lost tax revenues, and spending cuts of 46 percent.

Dr. Jonathan Willmer, Economics and Finance Department Chairman at Oklahoma City University, assailed Dr. Arthur Laffer’s report as making use of “curious” dates, carefully selected facts, mixing data and data types, not asking relevant questions, having “omitted variables bias,” and other problems.

Olson, Willmer and some of the other speakers repeatedly expressed disdain for the analysis of Laffer and members of his econometric firm in a study for the Oklahoma Council of Public Affairs (OCPA) last winter. During the question and answer period, Willmer said a mugging in Ukraine several years ago is an example of what happens when a country does not have a government.

The University of Oklahoma’s Cynthia Rogers, contended research about the effect of tax policy on state economic growth is “inconclusive because of estimation difficulties.” Her analysis assumed local governments would replace lost stat funding with other sources. She also asserted the “tax mix” will shift in the state with “consequences for equity, stability” that would “impact competitiveness.”

Dr. Rogers also projected net costs to low-income individuals. Although their income tax burden would be zero, her power point presentation concluded they would suffer from the loss of exemptions or credits.

Roy Williams of the Oklahoma City Chamber of Commerce said he had spoken with state leaders about what he fears would be negative effects of income tax cuts or a phase out on the Quality Jobs Program, which is linked to the income tax. Justin McLaughlin of the Tulsa Metro Chamber said, “The Quality Jobs Program going away is something that keeps me up at night.” He said he “never” hears or sees a personal income tax listed as a factor in economic relocation decisions.

Other speakers included Dr. Alexander Holmes, University of Oklahoma, widely quoted as highly critical of the Laffer study. Holmes said the income tax phase out is ultimately “designed to shrink the size of government,” but that advocates are “not doing it in an intellectually honest way.” He asserted the primary motivation behind the study is to “starve the beast” – with “the beast” being government.

David Blatt, director of OK Policy, welcomed attendees. In an interview with CapitolBeatOK after the event, Blatt said the conference had a “very clear, overwhelming message. We had four of the most distinguished economists in the state, and three of the economic developers. They were essentially unanimous in saying that cutting the income tax is not Oklahoma’s path to prosperity.”

In Blatt’s view, “they did a devastating job of showing that the report on which a lot of this is based, was based on poor science, and poor economics, and showing that what businesses are looking for is quality infrastructure, targeted incentives, a well-trained workforce. None of those goals would be improved by cutting the income tax. So, I don’t think there was an argument left standing for cutting the income tax for anyone who was here and heard these voices today.”

In the past, Blatt’s group has been critical of some incentive programs. Asked if he was concerned that it appears many or most might survive legislative scrutiny, he replied, “Well, we don’t know what’s going to happen to all of them. I think what we heard from the economic development people is that the Quality Jobs Program is especially important as a recruitment tool, and really does tie incentive payments to quality jobs. When you have a program that is funded entirely by the income tax revenues, eliminating the income tax or severely cutting the income tax is going to actually hurt limit our ability to participate in that program.

“There are some other incentive programs that definitely bear scrutiny. We’ve talked a lot about whether the now, $150 million a year – potentially $400 million a year -- in drilling credits really makes sense. That hasn’t really been on the table. That’s an area where they really need to be looking.”

Panel moderator Scott Meacham, former treasurer of Oklahoma, ended discussion and the OK Policy program with a rhetorical question, “How is this train going to be stopped, and who is going to be the adult in the room?”

Visitors from Kansas and Missouri encourage Oklahoma income tax phase out

Sat, 07 Apr 2012 02:04:00 GMT

A trio of supporters of lower taxation on Thursday (April 5) participated in a briefing for reporters, legislators and members of the public, aiming to boost support for proposals to reduce, and eventually phase out, the Oklahoma state income tax.

Steve Anderson is an Oklahoman who is now working as budget director for the state of Kansas. He was appointed to the post by Governor Sam Brownback, a Republican who formerly served in the U.S. Senate.

Anderson was home to speak at a tax policy seminar hosted by the Oklahoma Council of Public Affairs (OCPA) at the state Capitol. In an interview with CapitolBeatOK after the seminar, Anderson described the push in Kansas to eliminate small business income taxes, and put the personal income tax on a glide path to elimination in the next five to six years.

Anderson said his state’s effort is “very similar” to Oklahoma’s. However, he continued, “you have been blessed by 10 years of relative conservative leadership in Oklahoma. Relative to us – we followed HHS Secretary Kathleen Sibelius into office, who had a different philosophy, that’s certainly a huge difference.

“However, we are on the same track. We are tracking on income taxes, and social policy the first year. We corrected some of the issues we had there. Now, we’re dealing with the tax issues, to make ourselves competitive.”

A certified public accountant (CPA) with two decades of experience, Anderson has written frequently on tax and budget policy for OCPA. He crafted a memorandum, “A Tale of Two States: The Real Effect of Individual Income Tax Cuts,” that is driving the tax cut debate in the Sunflower State.

Anderson told CapitolBeatOK, “The governor had a great agenda. One was to eliminate the income tax on small businesses. We always argue as Republicans that small business is the economic driver of the country. Well, the governor believes that. He’s certainly made that the centerpiece of his tax program.

“We would bring individual income tax rates down to 4.9 percent and then we would start a growth to zero income tax, as we grew revenues. We would cap revenues at 3 percent, revenue growth, and anything over that would go to tax cuts.”

Anderson says the process “conceivably” could be completed within six years – if, that is, “we get it passed this year. If we have a good economy and we get the sort of impact we believe we would get out of indicating to business -- ‘come to Kansas, because this is a place where individual income tax is going to disappear.’”

Anderson message to the Oklahoma Legislature was direct: “I would say ‘get on board’ - or you will be that income tax sandwich that Governor Fallin warned about.”

Also speaking at the Capitol event was Missouri initiative activist Travis Brown, who is director of the “Let Voters Decide” Committee pressing a ballot measure to eliminate personal income taxes in the Show Me State.

He said, “In your case, I’m pleased to be debating and learning from the legislators here that there is a very serious effort to cut or possibly eliminate the taxation of personal income to make this economy competitive for jobs – for your neighbors to the south, and your neighbors like us, to the north, who are quite serious about implementing what the Wall Street Journal referred to as ‘the heartland tax rebellion.’

“We know from our neighbor to the west in Kansas, and your neighbor to the north, that many states right now are looking at aggressive plans to build and restore their economies for small business growth in the future by cutting or eliminating taxation of personal income. We think that is a very wise decision. We applaud the leadership here in Oklahoma, and hope – or know – that it would inspire a number of other states to do the same.

“We all know that Texas, Tennessee, Nevada, Florida, South Dakota and a variety of other states benefit greatly from not having taxed the most mobile of all small businesses and their resources, and that’s their income. So, we know that this is a very important time a very important decision before the Oklahoma Senate and the Oklahoma House of Representatives, to get right.”

Brown explained, “The process of building a ballot initiative like this has already taken over five years of legislative, constitutional and legal research. We have already been in the field collecting signatures. We’ve been challenged by some opponents in court. We’re waiting on a court ruling.

“Our ballot certification process or season ultimately concludes in mid-May, and we’ll have to see where things go from there. Make no mistake, we’d like to have our jobs and our businesses back that we’ve lost in Oklahoma. We want every state, including yours, to be competitive. We know this is good policy for jobs and economic growth.”

Also speaking for the OCPA event was Joseph D. Henchman of the Tax Foundation in Washington, D.C. Henchman told attendees Oklahoma’s “Tax Freedom Day” is Sunday, April 8. While the rest of the country’s Tax Freedom Day falls on April 17, Oklahoma in the past year moved from 41st among the 50 states to 39th.

Oklahoma Policy Institute held a conference of its own at the Oklahoma History Center, presenting a range of arguments against income tax reduction or elimination.

Several tax phase out and/or reduction bills are pending before the Legislature, and Governor Fallin has called for a major tax cut this year.

Commentary: A Conflict of Visions – in a battle that matters

Wed, 04 Apr 2012 15:40:00 GMT

The Great Recession of 2008-10 put in serious doubt longstanding assumptions that the overall tax burden on American taxpayers must increase consistently, and that the size of government — including its “footprint” in the economy — naturally expands.

Yet, now that the U.S. economy is marginally improved, and even substantially improved in places like Oklahoma, many in the political class want those assumptions restored. They want to hurry up and get back to “normal,” to get state appropriations back to “pre-downturn levels.”

Yet there are dissenters — we at OCPA are among them — who believe the nation is in a new normal, that the government growth of the last century is not a law of nature, it’s a function of political decisions. Limiting or at least flattening out that growth, as a prelude to creation of a new economy for the 21st century, may or may not be a law of nature, but some pretty intelligent folks argue it’s good economics.

In late November, Dr. Arthur Laffer spoke at a joint meeting of the downtown Kiwanis, Lions, and Rotary civic clubs in Oklahoma City.

Distilling an econometric analysis his firm had prepared in conjunction with OCPA, the former economic adviser to President Ronald Reagan said that the goals of lower taxation and smaller government are “not political, and not partisan” but simply “good economics.”

He “noted that President John F. Kennedy, a Democrat, scaled back significantly the draconian income-tax rates that had been imposed during the Great Depression. Nearly two decades later, Ronald Reagan built on the Kennedy model to bring income-tax levies still lower, triggering an economic boom that lasted for nearly a decade.”

Laffer’s speech and policy paper got people talking. (For example, Gov. Mary Fallin’s Cabinet Secretary of Finance and Revenue, Preston Doerflinger, smiled and said, “Let’s get it on.”) The Laffer-OCPA proposal had planted the seed for a big idea, perhaps one whose time has come.

Conservative Republican legislators responded with enthusiasm to Laffer’s idea. In the state Senate, four members introduced what they dubbed “the Laffer plan” to phase out the income tax. The quartet aimed to eliminate most personal tax credits, exemptions, deductions, and exclusions — and to drop the top income-tax rate from 5.25 percent to 2.25 percent, then steadily drive the levy down for a decade, leading to its elimination.

Momentum for the reform grew when 23 members of the House, led by Rep. Leslie Osborn of Mustang, unveiled their plan (like the Senate’s, closely patterned on Laffer). Their goal was to trim income-tax rates “in such a way that the state would have the lowest overall tax burden in the continental United States.”

In her State of the State speech, Gov. Fallin unveiled a bold plan featuring “the most significant tax cut in state history.” She asked lawmakers to join her in “an ambitious and exciting undertaking” intended to reform “the tax code, and chart a course towards the gradual elimination of the income tax.”

National attention quickly followed. Weeks earlier Budget & Tax News, a Chicago publication, had taken note of Laffer’s vision, but now a Wall Street Journal editorial highlighted the dozen or so states considering income-tax reductions, concluding “it is

Oklahoma that may have the best chance in the near term at income-tax abolition. The energy state is rich with oil and gas revenues that have produced a budget surplus and one of the lowest unemployment rates, at 6.1 percent. Alaska was the last state to abolish its income tax, in 1980, and it used energy production levies to replace the revenue.”

OCPA president Michael Carnuccio embraced Gov. Fallin’s “bold, transformational leadership” and the burgeoning legislative momentum, capturing in a series of interviews the audacity of (conservative) hope.

Gov. Fallin’s speech was on a Monday (February 6). By Wednesday, Oklahoma was the talk of the nation. Gov. Fallin was appearing on national television interviews, the tax-cut plan was a lead story on the nationwide Franklin Center online “platforms” for state-capitol news from all 50 states, and it was eliciting cheers from Americans for Tax Reform, the National Taxpayers Union, the American Legislative Exchange Council, and more. Americans for Prosperity (the group President Obama loves to single out for criticism) joined the applause, with an article at National Review Online entitled “Oklahoma Leads on Income-Tax Repeal.”

As this issue of Perspective went to press, three of the Laffer-linked plans had cleared their first rounds in the committee process and were pending before the two chambers. Fallin and the Republicans had indeed launched “a conversation starter.”

The Tulsa World editorial board was apoplectic. The Oklahoman was skeptical — at times sympathetic, at times fretting. And the state capitol press corps was largely hostile.

And of course, the Empire struck back. As Andrew Spiropoulos, OCPA’s Milton Friedman Distinguished Fellow, had predicted: “The public-spending lobby will continue to fight — they can’t afford not to.”

The Oklahoma Policy Institute, a left-wing think tank and lobbying organization, assailed Laffer’s credibility, contending his analysis could not withstand scrutiny. In an effort to “save the income tax,” the group hired a lobbyist to organize the various tax consumers discussed in the cover story of last month’s issue of Perspective (“Taking Your Money, Lobbying for More”).

The Institute on Taxation and Economic Policy (ITEP), a national left-wing think tank, also weighed in, spending a new round of its Soros-funded credibility attacking Laffer’s analysis and conclusions. OCPA responded with a paper, “Economics 101,” pointing out that ITEP previously acknowledged that taxes alter behavior but now seems to have changed its mind.

A lot of sound and fury, signifying something: This is a clash of visions.

As Wisconsin was (and remains) the nexus of conflict over labor policy in 2011-12, so in the course of human events Oklahoma has become a battleground state over tax policy.

The attacks from ITEP and its allies are to be expected. As OCPA pointed out in a recent blog post, “There is nothing new under the sun. President Reagan and Dr. Laffer fought these battles in the 1980s, and visionary leaders like Gov. Mary Fallin and certain state lawmakers must be prepared to pay ‘the penalty of leadership’ as they fight them anew in the weeks and months ahead.”

After all, the Laffer plan being considered in Oklahoma is the boldest tax-cut plan now under consideration in the free world. Both sides understand what’s at stake. If this domino falls — if a state with structures and systems rooted in the Populist/Progressive Era actually eliminates the income tax for the first time since Alaska did so three decades ago — then contemporary “progressives” won’t be progressing but will be in full retreat, something akin to Napoleon’s long slog from Moscow to Paris. A prelude to Waterloo.

It’s ITEP and the organized Left versus OCPA and its allies.

It’s Barack Obama and George Soros versus Ronald Reagan and his economist, Arthur Laffer.

If not a grudge match, then perhaps the equivalent of the first Ali-Frazier fight. Toe to toe for 15 rounds.

Let’s get it on.

Note: This unsigned commentary appears in the April 2012 edition of Perspective Magazine, monthly publication of The Oklahoma Council of Public Affairs.

Political parties split final two elections impacting 2012 session

Wed, 04 Apr 2012 20:02:00 GMT

The two major political parties have split the difference in two special elections held yesterday. Both races saw low voter turnout –- but Democrats were thrilled to make an incremental gain in the state House of Representatives.

In Senate District 20, Republican Ann AJ Griffin won easily with 3,049 votes (79.07 percent), defeating Democratic nominee Magnus W.T. Scott, Sr. (807 votes, 20.93 percent) to fill out the remaining months (and the last few weeks of session) for the seat held by the late David Myers of Ponca City.

The old District 20 rested in Grant and Kay Counties. Tuesday’s election was held in the new district lines, sprawling across north central Oklahoma’s Logan, Noble and Pawnee counties, and a portion if Kingfisher County -- encompassing an entirely new electorate.

In statement sent to CapitolBeatOK, state Republican Party Chairman Matt Pinnell congratulated Griffin on her victory. He said, "AJ ran a spirited campaign and will serve the people of District 20 well. AJ will be a strong advocate for economic growth and smaller government in the State Senate."

In House District 71 (Tulsa), Democratic nominee Dan Arthrell won by 3 votes (1,416 votes, 50.05 percent) in final but unofficial returns, defeating Republican nominee Katie Arthrell (1,413, or 49.95 percent). If the results hold up, Arthrell will replace former state Rep. Dan Sullivan, a Republican.

Democratic party state chairman Wallace Collins celebrated the apparent win in a statement sent to CapitolBeatOK. Collins said, "We are very excited with the results of a competitive race. Our Democratic Candidate, Dan Arthrell has worked hard, listened to the voters of the district, and proudly, won the right to serve the people."

Pinnell, however, says Arthrell will file for the seat next week, seeking election in November. He told local Republican activists, "Keep those Katie Henke signs in your garage, because we intend to help Katie Henke get elected in November.”

Both of the new legislators will take their oaths shortly after election results are certified.

Earlier this year, in special elections held February 14, Democrats held on to a Senate seat (District 46, Al McAffrey) and regained a House seat that had been held for several months by a Republican (for the first time in state history). That District 1 seat is now back in the Democratic column, and victor Curtis McDaniel plans to seek reelection in November.

After the new members are sworn, the Senate will have 32 Republicans and 16 Democrats; the House will have 68 Republicans and 33 Democrats.

Bob Wills is still the King – Oklahoma Historical Society receives grant to preserve western swing music recordings

Thu, 05 Apr 2012 11:39:00 GMT

The Oklahoma state Capitol was bustling today with regular legislative business – as well as the sounds of music in the tradition of the late Bob Wills, popularly known in his era as the King of Western Swing. The Grammy Foundation has presented a $20,000 grant to the state Historical Society to finance preservation of around 600 hours of Wills’ recordings from the middle of the Twentieth Century.

Carolyn Wills, the music legend’s daughter, came to the Fourth Floor Rotunda to make the announcement after a morning when swing music performers took control (with permission) of the House chambers for performances of old time music from Wills’ body of work.

Dr. Bob Blackburn, executive director of the Historical Society, told CapitolBeatOK the Grammy Foundation grant is “validation” that the Tulsa legend’s musical legacy remains a vibrant part of state and national cultural history.

The society now controls the entire Bob Wills collection, which for the last several decades was housed in Turkey, Texas. Wills’ family gave the 600 hours of recordings and other materials, including the Casey Dickens audio collection, to the Historical Society.

From the policy side of the Capitol, Lt. Gov. Todd Lamb cheered the Grammy Foundation gift. Lamb said of Wills, “He had to escape from Texas to pursue his musical career in Tulsa and now his fiddles, boots, recordings, and even a few cigars are safe and sound back in Oklahoma.”

While Wills was not born in Oklahoma, he and his band -- the Texas Playboys – surged to popularity early in the modern media era, with daily radio broadcasts from Tulsa Cain’s Ballroom. His greatest hits included “Take Me Back to Tulsa,” “Faded Love,” and “San Antonio Rose.”

Carolyn Wills visit for “Bob Wills Day” at the state Capitol included time listening to live performances of her father’s tunes, meetings with a range of reporters and greetings from arts advocates. State Rep. Purcy Walker, an Elk City Democrat, joined with Kent Harrison of the Oklahoma State Fiddlers, Inc. to organize the hours of music and fellowship beneath the dome.

Leading the afternoon performances were Bob Fjeldsted and the Roundup Boys. A complete advance report from Darla Shelden -- outlining the day’s activities and an overview of Wills’ cultural impact -- is printed this week in The City Sentinel, a weekly newspaper in Oklahoma City.

Blackburn is pressing for legislative approval of a $42 million bond issue to construct a 75,000 square foot museum in Tulsa’s Brady Arts District. If approved, the taxpayer support would be combined with an anticipated $8 million in private funding.

Legislative leaders have said the only bond project with widespread support in the House and Senate is a widely anticipated major bond issue for improvements and repairs to the state Capitol itself, perhaps including improvements to the Thorpe building or other parts of the Capitol Complex.

Editor’s notebook: Eyewitness to history, ultrasound appeal, revenue softening, support for Israel

Tue, 03 Apr 2012 12:46:00 GMT

Oklahoma Attorney General E. Scott Pruitt and U.S. Sen. James Inhofe were eyewitnesses to history last week, observing oral arguments in the historic challenge to the 2010 federal health care law.

Also in an editor’s notebook: Pruitt will appeal a county judge’s decision striking down Oklahoma’s law requiring ultra sounds before abortions, state Treasurer Ken Miller appears poised to announce a softening in state tax revenue receipts, and U.S. Rep. James Lankford is meeting with a bi-partisan group of OU students about mutual support for the Nation of Israel.

* * *

Attorney General Pruitt had a ringside seat for last week’s U.S. Supreme Court oral arguments over the health care law. In a discussion with reporters, Pruitt noted that many advocates of the legislation had denounced lawsuits, like Oklahoma’s, challenging the measure’s constitutionality were denounced as “frivolous” in 2010 and 2011. But no one is saying that now, after a narrow majority of the High Court signaled at least some of its provisions are under intense scrutiny.

Pruitt told reporters at a Washington, D.C. press conference, where he joined several other state Attorneys General, “Two years ago, all across this country, many liberals and conservatives jurists thought the lawsuits brought by the states were frivolous. Well, the Supreme Court does not take up frivolous lawsuits. They take up consequential lawsuits. They recognize that what is at stake in this lawsuit, in this appeal, in this decision is truly liberty and federalism.

“It has been an honor to be a part of this process, hear these Justices ask the questions that each of my friends behind me have been asking for two years: Where are the limitations? Isn’t this unprecedented? Was it necessary to pass it under the commerce clause? All these issues have been expressed over the past three days.

“I am hopeful that the Supreme Court will uphold our lawsuit and deny the Constitutionality of this law. Send it back to Congress to make sure when they do healthcare reform, they do it within the confines of the Constitution to preserve liberty and freedom for the individuals and the states.”

U.S. Sen. James Inhofe, a Tulsa Republican, told reporters, ““I am very proud of our state’s Attorney General. He has put Oklahoma in a leadership role, and he is working to stop the oppressive things that the government is doing.” Inhofe joined three amicus briefs challenging the law, two of them among the briefs the court has accepted in the current case.

* * *

Speaking of Pruitt, he quickly announced he would appeal the decision of Oklahoma County Judge Bryan Dixon striking down a law that requires Oklahoma clinics to provide information, including ultrasounds, to women considering abortion.

Pruitt contends, “The law is about presenting abortion accurately with full information about the outcome. We have an obligation to protect our citizens and make sure abortion is held to the same standard as any medically informed decision.”

The law was sponsored by state Rep. Lisa Billy, a Lindsay Republican.

Senator Constance Johnson, an Oklahoma City Democrat, hailed Judge Dixon’s decision striking the law down as unconstitutional. Johnson recalled the measure as “a highly contentious bill when it went through the legislature. I continue to commend former Gov. Brad Henry’s wisdom in vetoing this measure and am still shocked by the Republican legislative majority’s willingness to override his veto.”

The law is being challenged by the Center for Reproductive Rights, a New York-based abortion rights group. A temporary injunction blocking the law’s enforcement has been in effect since May 2010.

Last week, Capitol reporters pressed state officials on the issue, wondering if the state government is wasting money advocating for laws that in some cases are struck down in the courts. Senate President Pro Temp Brian Bingman, a Sapulpa Republican, countered that view, saying, “Oklahoma is a pro-life state.”

Senate Minority Leader Sean Burrage, a Claremore Democrat, expressed worry about litigation costs – noting, however, that he was among several Democrats who had backed pro-life measures in recent years. Asked if there were many pieces of legislation struck down during years Democrats governed the state, Burrage answered succinctly, “Certainly.”

* * *

Oklahoma Treasurer Ken Miller is holding his regular monthly briefing for Capitol reporters on Tuesday (April 3). In today’s notice to the media, Miller promised details on “the end of a two-year growth streak in revenue collections and an increasing focus on the state's energy sector as natural gas prices continue to fall.”

* * *

U.S. Rep. James Lankford, an Oklahoma City Republican, has emerged as one of the most ardent supporters of Israel among the first-term members of Congress. He is meeting with pro-Israel students on the University of Oklahoma campus.

The gathering is being co-sponsored by College Republicans, Young Democrats, OU Hillel, the Union Programming Board and the OU College of International Studies.

Things That Matter: Pension Reforms, Justice Reinvestment, and Honors Due

Tue, 03 Apr 2012 23:13:00 GMT

Senate Committees (Retirement and Appropriations/Budget) might wrap up work on new pension bills Wednesday or later this week. The pending reforms, both substantive and technical in nature, could advance several government retirement systems toward funding adequacy, building on the momentum of recent years.

House Bills 2319 (police), 2320 (fire) and 2952 (the law enforcement retirement system, or OLARS, system for highway patrol troopers) are under consideration. A fourth measure, House Joint Resolution 1091, has not yet been assigned to the A&B committee. Three other measures making technical changes have already cleared the two panels.

State Rep. Randy McDaniel of Oklahoma City said Tuesday (April 3) there has been “positive discussion” on the three substantive statutory proposals, and is hopeful of positive action.

H.B. 2319 increases employer and employee contributions for police participants in the retirement system. Revisions to the system’s funding stream from the insurance premium tax would, with no tax increase, bolster the system.

H.B. 2320 raises the regular pay-in for the system, and revises the firefighters’ retirement system to hold to 7.5 percent the rate of return from the Deferred Option Plan (DROP).

H.B. 2952 increases government and employee contributions, and puts employees in the Oklahoma Law Enforcement Retirement System (OLERS) under the same rules as other public employees.

The net effect of the envisioned changes will add to the historic shift toward funding sufficiency that began with pension reforms enacted in 2011.

Not yet scheduled for a hearing in A&B is H.J.R. 1901. Rep. McDaniel told CapitolBeatOK, “Leaders are working hard to keep this measure alive. There are perhaps some misunderstandings about Section C.

“Well-funded public pension systems have an attribute in common: the annual required contribution (ARC) is consistently paid. When the ARC is not funded, the unfunded liabilities grow, … making it more expensive to solve the problem.

“Section C of H.J.R. 1071 requires funding the ARC unless the costs are more than 100 percent of the certified budget. The specific exemption prevents unexpected expensive annual requirements. Moreover, even if the cost is less than 10 percent of the certified budget, a 60 percent super majority can override the requirement to fund the ARC.”

* * *

House Bill 3052, the “justice reinvestment” proposal co-sponsored by Senate President Pro Temp Brian Bingman and Speaker of the House Kris Steele, cleared a Senate committee this morning (Thursday, April 3) and thereby advances to the floor.

Senator Jonathan Nichols handled the bill for Bingman. Nichols revised the legislation to lift out revisions to the state’s 85 percent rule, which in current practice means many prisoners with good behavior wind up serving more than 90 percent of sentences before qualifying for “good time” credits.

The measure retains in other reforms in the original House Bill -- a new state grant program to assist local law enforcement, mandated post-release supervision of convicted felons, start of work on regional “mental health beds” to allow law enforcement to divert individuals that do not belong in jails, use of intermediate revocation facilities to assure consequences for technical violations of probation, and other reforms.

The measure anticipates flattening the curve of incarceration growth a few percentage points below the anticipated 9 percent (and $260 million cost run-up), and using a large portion of savings to “reinvest” in to the measures “smart on crime” provisions.

After Nichols gave an explanation of the bill and the revisions made to the House measure, members of the panel had no questions for the Norman Republican. H.B. 3052 then cleared the Judiciary Committee on a vote of 7-0.

Soon after the bill advanced to the Senate floor, Speaker Steele reiterated his support for the amended bill. In a statement sent to CapitolBeatOK, the Shawnee Republican said, “We’re one step closer to enacting the strongest, most pro-law enforcement public safety plan Oklahoma has had in recent history. It will chart a new, smarter course for how Oklahoma deals with crime.

“Police will get more resources, prisons will have the space to incapacitate dangerous criminals and offenders will be held more accountable while getting the services necessary to deter future offenses. I’d like to thank Pro Tem Bingman, Senator Nichols and the Senate Judiciary Committee for their commitment to increasing public safety by making better use of our state’s resources.”

Senator Bingman, in his comments, reflected, “Oklahoma needs a renewed plan to make our communities safer, one that is tough on crime and fiscally conservative. We know our criminal justice system is on an unsustainable path.

“Today, the Senate advanced a common-sense, conservative plan to put more police officers on the streets, stop criminals from reoffending once they have completed prison sentences, and target taxpayer dollars using an effective approach to fighting crime. Senator Nichols, a former Assistant District Attorney with a proven track record of effective crime fighting, should be applauded for his thoughtful work on this important piece of legislation.

“I would also like to commend House Speaker Kris Steele for his vision and tenacity to make Oklahoma a safer place for our families. I urge my colleagues to support the passage of HB 3052 by the full Senate.”

* * *

At their March 28 meeting, Oklahoma County Commissioners Willa Johnson and Brian Maughan, along with Kevin Jacobs (Commissioner Ray Vaughn’s chief deputy) passed Maughan’s resolution praising community leader Josephine Freede of Oklahoma City.

Maughan’s resolution read:

“WHEREAS, Josephine Freede, known universally to her friends, family and community as Jose, came to America from her native England as the young bride of Dr. Henry Freede; and,

“WHEREAS, Jose soon became an American citizen and a proud adopted Oklahoman, dedicating her life to the betterment of our city and state; and,

“WHEREAS, Jose Freede has been at the center of virtually every worthwhile effort to make Oklahoma City a better place for all, including leadership of countless civic, social and community organizations; and,

“WHEREAS, Jose Freede’s generosity to her community has become legendary, including her gifts and endowments to the arts, to education and to many other charitable causes, resulting in her induction in 2003 into the Oklahoma Hall of Fame; and,

“WHEREAS, Jose Freede is celebrating her 85th birthday as one of Oklahoma’s leading citizens, reminding us all through the example of her well-lived life that what you give back matters most,

“NOW, THEREFORE, be in resolved that April 1, 2012, is hereby designated as Jose Freede Day in Oklahoma County in honor of all that this most distinguished citizen has given to our community.”

Freede’s first name “Josephine” is shortened as “Jose” (pronounced Jo-see). In addition to her tireless work on community project, she has been a strong advocate for independent, non-partisan journalism in the public interest.

Two-year Revenue Growth Streak Ends as Collections Fall

Tue, 03 Apr 2012 23:25:00 GMT

Oklahoma’s two-year revenue growth streak came to an end as total revenue collections in March fell slightly lower than collections from the same month last year, State Treasurer Ken Miller said Tuesday (April 3) as he released the March gross receipts report.

Total collections for the month were $920.6 million, down by about $2.6 million or 0.3 percent from March of last year. Miller said the biggest drop among the major sources of revenue came from the gross production tax, which fell by more than one-third.

Income tax collections were lower for the first time in eight months with negative corporate income tax collections weighing down the slightly positive personal income tax receipts.

Sales tax receipts are the only major revenue source that outperformed the previous year with collections surging 15 percent compared to March 2011.

Watching the energy sector

“In the coming months, we will closely watch the energy sector as it is a leading sector of Oklahoma’s economy,” Miller said.

Gross production collections were down in March for a fourth consecutive month, reflecting the impact of low natural gas prices. On Monday, the spot price of natural gas closed at its lowest point for the year, below $1.90 per thousand cubic feet (mcf), at the Henry Hub in Louisiana, the primary marketplace for Oklahoma-produced natural gas.

“While one month does not a trend make in overall revenue collections, four continuous months of decreasing gross production collections is getting trendy,” Miller said. “And due to the timing of gross production collections, March receipts reflect market activity from January. We should expect a period of shrinking natural gas tax collections until prices rebound, especially if the price triggers a lower extraction tax rate.”

Miller said state financial authorities will keep a close eye on natural gas prices.

“Next year’s official revenue estimate reflects natural gas at $3.64 per mcf,” he said. “In addition, state law mandates the currently assessed tax rate of seven percent be lowered to four percent if the average monthly price falls below $2.10 per mcf.”

Miller said the energy sector, which helped bolster Oklahoma’s recovery from the national recession, is tied to approximately one-third of the state’s economic activity.

“Undoubtedly, the strong price of crude oil is helping to compensate for the downturn in natural gas prices,” he said.

The exact percentage of gross production revenue generated by natural gas in March is not yet calculated, but the trend over the past several months has been downward. In October, it was 51 percent. In February, it was 35 percent.

Some positive news

Miller said the state’s personal income, as announced late last week by the U.S. Bureau of Economic Analysis, is a ray of light on the economy.

“Oklahoma’s personal income grew faster than the national average last year,” he said. “Total personal income was up 6.2 percent in 2011 at $141 billion, the fourth-highest change in the nation.”

Per capita personal income growth was also strong in 2011, Miller said.

“The state’s per capita personal income rose from $35,389 in 2010 to $37,277 in 2011,” he said. “The growth rate was third highest in the nation at 5.3 percent.”

Nationally, per capita personal income grew by 4.3 percent and total personal income was up by 5.1 percent.

The state’s per capita personal income ranks 34th in the nation at 89 percent of the national average.

Figures for unemployment also brought positive news to Oklahoma, Miller said.

“The state’s unemployment rate dropped to six percent in February, a reduction of 0.1 percentage points from January,” he said.

March collections

The revenue report for March shows gross collections at $920.63 million, down $2.63 million or 0.3 percent from March 2011.

Gross income tax collections, a combination of personal and corporate income taxes, generated $342.21 million, a decrease of $5.25 million or 1.5 percent from the previous March. Personal income tax collections for the month are $253.44 million, up $3.51 million or 1.4 percent from the prior year. Corporate collections are $88.77 million, down by $8.76 million or 9.0 percent.

Sales tax collections, including remittances on behalf of cities and counties, total $332.86 million in March. That is $43.63 million or 15.1 percent above March 2011.

Gross production taxes on oil and natural gas generated $67.67 million in March, a decrease of $38.14 million or 36.0 percent from last March. Compared to February reports, gross production collections are down by $1.49 million or 2.2 percent.

Motor vehicle taxes produced $62.55 million, down by $2.07 million or 3.2 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 $115.35 million during the month. That is $800,000 or 0.7 percent less than last March.

First quarter collections

During the first quarter of 2012, gross collections totaled $2.726 billion. That is $182.84 million or 7.2 percent higher than collections in the first quarter of 2011.

Gross income tax collections were $950 million, up by $54 million or 6.0 percent from the first three months of last year.

Personal income tax collections were $815.66 million, up $48.24 million or 6.3 percent from 2011 quarter one.

Corporate collections were $134.33 million, an increase of $5.75 million or 4.5 percent over the period.

Sales tax collections were recorded as $1.015 billion for the three months, up by $113.65 million or 12.6 percent from the same quarter of last year.

Gross production generated $205.59 million during the quarter, down by $48.12 million or 19 percent from first quarter of 2011.

Motor vehicle collections produced $172.56 million, an increase of $12.38 million or 7.7 percent from last year’s first quarter.

Other sources generated $382.8 million, an increase of $50.94 million or 15.3 percent from first quarter 2011.

Twelve-month collections

Between April 2011 and March 2012, gross revenue totals $10.864 billion. That is $966 million or 9.8 percent higher than collections for the previous 12-month period.

Gross income taxes generated $3.763 billion for the period, reflecting an increase of $438.77 million or 13.2 percent from the prior 12 months.

Personal income tax collections total $3.241 billion, up by $314 million or 10.7 percent from the April 2010 to March 2011 period. Corporate collections are $521.52 million for the period, an increase of $124.73 million or 31.4 percent over the previous period.

Sales taxes for the period generated $3.954 billion, an increase of $306.18 million or 8.4 percent from the prior 12-months.

Oil and gas gross production tax collections brought in $989 million during the 12 months, up by $40.8 million or 4.3 percent from the previous period.

Motor vehicle collections total $675.44 million for the period. This is an increase of $53.81 million or 8.7 percent from the trailing 12 months.

Other sources generated $1.483 billion, up $126.77 million or 9.3 percent from the previous 12 months.

“Significant” income tax cut still within reach, as Fallin repeats her advocacy

Tue, 03 Apr 2012 00:35:00 GMT

While some analysts and most Democratic voices assert major income tax reduction is fading from the front-burner at the state Capitol, three key Republicans contend they are set to deliver “significant” tax reduction this year. Of course, “significant” might be in the eye of the beholder.

As the Legislature crosses the half-way point of the 2012 session, the trio of leaders have not squelched the idea of major cuts, and/or beginning a phase out of the state income tax.

Governor Mary Mary Fallin, in a brief exchange with two reporters (including CapitolBeatOK) repeated her strongest talking points from recent months, saying it was time for the Legislature to step up and lead on the issue. The range of potential cuts appears to lie somewhere between a quarter of a percent (the Senate) and half-a-percent (the House) to one percent or more (the governor).

Fallin in early February advocated the largest tax cut in Oklahoma history, including a slow motion phase out of the income tax.

Legislative vehicles dubbed “live rounds” at this point range from a half-percent cut to as much as three percent lopped off the current 5.25 percent top rate, but the latter cut is predicated on achieving tax credit reforms – ideas that have faced powerful opposition from business interests and others.

Gov. Fallin told CapitolBeatOK she is meeting twice a week with legislative leaders, to discuss all issues, including tax reduction. She has been pressing for tax cut action sooner rather than later, so that other policy matters can be dealt with in the closing weeks of the session.

In his weekly exchange with Capitol reporters last Thursday (March 29), Senate President Pro Temp Brian Bingman promised taxes will be cut “fairly significantly” before the session ends. The Sapulpa Republican reflected, “It helps if the governor is pushing us” to get things resolved, so that legislators can leave before the scheduled late May adjournment. He said, “We are making progress.”

Bingman declined to name a firm percentage or dollar figure: “I don't think I can yet give a good number. I am anxious to talk with her and Speaker and others about what's within reach.” Like others among the “deciders” at the Capitol, he complimented the work of state Rep. David Dank, who led the lengthy task force investigation of tax credits and business incentives, recommending some for repeal, others for reform, and an end to transferability of credits.

Bingman also mentioned the work of his colleague, Mike Mazzei of Tulsa, adding, “We can't continue just looking, now we have to make some decisions.”

In response to a question from CapitolBeatOK, Bingman said, “Any tax cut is substantial in my view.” While clearly sympathetic to agencies that have faced budget reductions in general appropriations in the last three three years, he said budget restraint is needed even when tax revenue growth is good.

Continuing his response to the spending issue, Bingman said, “I am always open to see if there are inefficiencies. In my mind regardless of the revenue picture we are starting off the budgeting with a flat budget. There may be some tweaks where some agencies may take a little more in cuts.”

House Speaker Kris Steele offered similar observations, but named a higher target for potential tax reduction. Echoing Bingman, he told one reporter, “I am not prepared to give you a number today,” but went on to comment the Legislature should always consider “any and all consequences.” He believes a half percent reduction in the unpopular income tax levy is still possible.

While not as pessimistic as Rep. Dank about a major tax cut in 2012, the Shawnee Republican said, “We are still focused on the tax code. We've learned that behind every tax credit there is a constituency.” He continued, “There have been some sobering votes and discussions.” Until the House working group he named finishes its work and the Republican caucus focuses specifically on possible cuts in its meetings, reflected, “I'm not sure that [Dank's] pessimism is right.” He added, “I do want to stress that the final amount of a tax cut will in part be tied to reforms in the tax credits.” He also stressed his support for Dank's work and the value of the Oklahoma City Republican's analysis.

Reporters pressed Steele on how a tax cut might be presented. He commented, “Whether it's in a comprehensive package or not – it could be in pieces -- our caucus wants to reduce income taxes and I believe that is going to happen.” He also said he is advocating for “a responsible plan. As the economy grows there is room to reduce our income tax rate without hurting core services.”

Steele added, “it doesn't necessarily have to be 'revenue neutral.'” He explained “one of the considerations is to assume a dynamic [economic] response to whatever we do.”

In discussion of a separate issue – the failure of major ethics reforms in the House, despite his personal support -- Steele offered a reflection that seems equally apt in the tax reduction context. He observed, “We talk about a lot of things out here, but some times things are not 'real' around here until we have to make a decision and vote on them.”

From the other side of the aisle and the opposite end of the Capitol rotunda, state Sen. Sean Burrage of Claremore, minority leader in the upper chamber, declared last week that the “Pinnacle” reform plan for the Department of Human Services ought to rule out consideration of any tax reductions.

Burrage contended, “The plan to hire 200 new child welfare workers, recruit more foster parents and phase out shelters is extremely encouraging. I’m hopeful these initiatives will mark a real turning point in how Oklahoma deals with at-risk children and families.

“The reality is current funding levels for DHS are inadequate to implement these reforms. It will cost tens of millions of additional dollars. Yet even as this plan is being made public, there’s still a huge push to approve another income tax cut. I am concerned that it will be virtually impossible to do both. For the sake of the children of this state, it is time to get our priorities straight.”

Perhaps the most upbeat assessment of chances for tax reduction in recent days came from Gov. Fallin herself. In a discussion with two journalists, including this writer, she stuck to her rhetorical guns.

Disclosing she is meeting with Steele and Bingman every Tuesday and Thursday, she noted that the most aggressive tax reform mesures “are still alive. We're going to be looking at how much can we afford.”

She contends that tax credit reform and rate simplification are key parts of her agenda. She restated the core of her view: “Taxpayers should be able to keep, the people of Oklahoma should be able to keep, more of their hard-earned money.” Fallin wants to make the state more competitive economically, and notes that serious tax reduction plans are under debate in neighboring states, particularly Kansas and Missouri. In sum, “The tax cut needs to be significant and real.”

When a reporter asked if the “writing is on the wall” for demise of major tax cuts, Fallin countered gently, saying the state must become more “family friendly and business friendly.” She believes, “This is the year to do it. I'm open to other ways to do this but we can't make progress if we leave in place all the carveouts and loopholes.”

She asserted that, “In the end, this falls on the Legislature's hands. They have to have the guts to step forward.” While agreeing there are “many special interest groups” opposed to tax cuts and the phase out idea, “we can achieve lower taxes. Our focus on government efficiency has already created savings.”

In response to a direct question as to whether or not a reduction as high as one percent or more remains within reach, Fallin answered “yes.” Still, she added, “All plans are on the table. I hope the Legislature will stand and do what's right.”

Should Fallin and legislative leaders decide to press for budget trimming in combination with continued new efficiencies and tax credit reforms, a list of $853 million in potential reductions (totaling $2 billion over three years) has been advanced by the state House advocates of the most aggressive of the income tax phase out plans.

As debate and deliberation continues, Thursday (April 5) will bring dueling seminars by the state's two leading policy think tanks, one deemed conservative or market-oriented, the other liberal or “progressive.”

At noon, the Oklahoma Council of Public Affairs (OCPA) will host “The Race to Tax Freedom Day” at the state Capitol (Room 104) from Noon to 1:30 p.m. Featured will be presentations on the status of tx reduction efforts in Kansas and Missouri. That will be followed (around 1 p.m.) by a joint announcement from OCPA and the Tax Foundation concerning this year's tax freedom day.

Tax Freedom Day is the date, each year, when the Tax Foundation estimates Americans have worked long enough to pay their taxes for the entire year. The data is also calculated for individual states. After 90 minutes or so at the seat of state government, many participants will travel to OCPA's offices at 13th and Lincoln (a few blocks south of the Capitol) for a luncheon and roundtable discussion.

OCPA's analysis supports free markets, limited government and entrepreneurial capitalism. The group has been a leading advocate for income tax reductions, including a gradual phase out of the unpopular levy over a decade.

At 1 p.m., Oklahoma Policy Institute will host a two-hour session expected to include critical analysis of the study commissioned last year by OCPA in cooperation with, Arduin, Laffer & Moore Econometrics (ALME), the econometric firm run by Dr. Arthur Laffer.

The OK Policy event, slated for the Oklahoma History Center (800 Nazih Zuhdi Dr., northeast of the state Capitol), will also include presentations, organizers say, of “ what the implications of doing away with the income tax could be on state public finances, economic development, and the overall economy of the state.”

OK Policy's mission statement asserts the group “promotes adequate, fair, and fiscally responsible funding of public services and expanded opportunity for all Oklahomans by providing timely and credible information, analysis, and ideas.”

Education analysts respond critically to OU graduation rate disclosures

Tue, 03 Apr 2012 14:53:00 GMT

On Friday, March 30, CapitolBeatOK reported the four-year graduation rate at the University of Oklahoma is 35.7 percent, according to OU-generated data. A March 13 advertisement that ran in four state newspapers had placed the graduation rate at 67.8 percent, touting it as “the highest graduation rate in state history.”

The higher figure, however, is a six-year graduation rate. The full text of the OU advertisement was provided in the March 30 story.

Catherine Bishop, an OU vice president (public affairs) told CapitolBeatOK, “The current 6-year cohort (2005) had a rate of 35.7% at the 4-year point, 62.0% at the 5-year point and 67.8% at the 6-year point. The average time to degree at OU is about 4.8 years, which is the reason for the big jump by the 5-year point.”

In the earlier report, Bishop’s explanation for the data was quoted at length.

The advertisements and the cost per newspaper, paid for with university funds, were as follows: The Oklahoman (Oklahoma City) $17,268.96, Tulsa World ($8,785.08), OU Daily (Norman, $1,355) and The Norman Transcript ($1,160.50). Total cost for the four advertisements was $28,569.54.

In response to CapitolBeatOK’s March 30 report, Brandon Dutcher, Vice President for Policy at the Oklahoma Council of Public Affairs (OCPA), commented, “Certainly there’s a time and a place for misdirection and deception in Higher Ed — who can forget Keith Jackson’s 88-yard tight-end reverse, or Boise State’s masterful two-point conversion? — but this is not one of them.

“Leaving aside the question of whether 67.8 percent is something to boast about (and I suppose it is when compared to, say, Rogers State’s six-year rate of 11.6% or UCO’s 35.7%), the problem here is that OU misled people. OU describes itself as ‘a four-year public university.’ When the man on the street hears ‘graduation rate,’ in his mind he’s thinking four years. Indeed, many people will doubtless be surprised to learn that there even is such a thing as a ‘six-year graduation rate.’

“There’s nothing wrong with mentioning the six-year rate. But with $28,569 and all that space, how can a four-year university not even mention its four-year graduation rate?

“OU took money from taxpayers and used that money to mislead those taxpayers.”

In an interview with CapitolBeatOK, Jonathan Robe, administrative director, Center for College Affordability and Productivity (CCAP) was asked if most people assume, when they hear of a “graduation rate” without explanation, that the reference is to a four-year rate.

Robe replied, “I think that is correct. The U.S. Department of Education in its data assumes the ‘normal’ time is four years. Traditionally, what a bachelor’s program means or anticipates is that a student will earn a degree in four years.

“What is anticipated, particularly in the case of parents who went to school 20 or 25 or 30 years ago, is that students on a four-year track to graduation. Also, the general assumption of most traditional students is that they are in a four-year program. The ascendancy of non-traditional students is not fully accounted for in the understandings of many people.”

Last year, CCAP collaborated with OCPA on a study challenging “conventional wisdom” about higher education policy.

Robe contends it is reasonable to expect officials to be clear about four-year or five- and six-year rates when disclosing such information. He said, “The burden lies with school officials to be clear about that. But that is something that is confusing. The U.S. Department of Education is now collecting 8-year data, seemingly to capture every possible student and improve the data.”

Asked how OU’s graduation rates for four, five and six years stack up with other universities around the country, he reflected, “One problem is that when you deal with the U.S. Department of Education data, the information is a bit dated. For all of those – four-year, five-year and six-year graduation rates -- OU comes out better than the average, but that’s not to say the graduation data is great.” OU’s graduation rates are higher than those at most publicly-funded institutions.

Robe continued, “The government [U.S. Department of Education] data is ‘clear,’ but you have to look for it. One thing basically that is learned from the data is that if people don’t get their degree after six years, they’re probably not going to get it.

“Many students are now, in fact, non-traditional, and the graduation rates for transfers are murky. If you can account for that, it might even improve graduation rates.”

CapitolBeatOK asked Robe to comment on issues raised by the presentation of the OU graduation data, and any additional observations about higher education performance, or related issues. He said, “A real problem for our organization, a mantra in fact, is that Higher Education graduation rates are just part of the concern. Colleges and universities are in the business of disseminating information, at least in theory.

“However, beyond vague generalities, when forced to disseminate information to themselves – honestly and forthrightly – so that students or potential students can make decisions, institutions of Higher Education fall short. They know they are benefitting from being less than precise. Information that shows imperfections or that reflects unfavorably is withheld or not disclosed.

“Graduation rates can go up, but how can we be certain that the quality of education is actually going up? Nationally, literacy among college graduates is actually lower than it was in the early 1990s. Despite increases in graduation rates in higher education, it is not clear that the quality of education for those graduating has increased.”

Disclosure Note: In 2009, OCPA was founding sponsor of CapitolBeatOK, which in 2011 became a project of the Franklin Center for Government and Public Integrity.

Four-year student graduation rate at the University of Oklahoma is 35.7 percent

Sat, 31 Mar 2012 22:37:00 GMT

The four-year graduation rate for students at the University of Oklahoma is 35.7 percent – just over one-third of the undergraduate student body -- according to OU-generated data provided this week to CapitolBeatOK.

An advertisement published in four newspapers on March 13 touted a 67.8 percent graduation rate. However, that is the six-year graduation rate, a university official said in response to questions.

In response to inquiries from CapitolBeatOK, OU Vice President (Public Affairs) Catherine Bishop said, “The ads were published March 13 in the Oklahoma Daily (OU newspaper), the Tulsa World, the Norman Transcript and the Oklahoman. The total cost for all four ads, which were paid for using University funds, was $28,569.54.

“We use nationally recognized data collection methods that are then verified by other sources.”

Bishop continued, “As you know, one of the major goals statewide – from the Governor, to the State Regents, to Chambers of Commerce and organizations such as the Oklahoma Council on Public Affairs – is to increase the number of college graduates in our state.

“Increasing the graduation rate provides the greatest possible return to the taxpayers of Oklahoma. We think it is always important to celebrate and call attention to our students’ academic success. We hope our example will encourage and inspire others.”

According to a narrative provided by Bishop, “Every institution calculates its own graduation rate but follows rules for the calculation of this rate as defined in the annual IPEDS [note: Integrated Postsecondary Education Data System] survey by the US Department of Education.

“To do this calculation you must use individual student data that is not publically available so usually only the institution can do the calculation. In Oklahoma this calculation is also done by the Oklahoma State Regents for Higher Education [OSRHE] with their Unitized Data System.

“Each year OU and the other state institutions reconcile this calculation student by student with the OSRHE so we all have a double check of our logic and methodology. There are national studies of these data but they use aggregate data provided by the institutions, usually through the IPEDS survey.

“OU is the home to the Consortium for Student Retention Data Exchange (CSRDE). The source data for this consortium is aggregate data by race and gender also not individual student data and is provided by each institution in the data exchange.

“The most current 4-year graduation rate at OU is for the students entering in Fall 2007 – 35.7%.

“The current 6-year cohort (2005) had a rate of 35.7% at the 4-year point, 62.0% at the 5-year point and 67.8% at the 6-year point. The average time to degree at OU is about 4.8 years, which is the reason for the big jump by the 5-year point.”

The data provided by Bishop varies slightly from current (but apparently dated) information at the website of the Institute of Education Services, an arm of the National Center for Education Statistics, where the IPEDS data is available.

Information there appears slightly older (through 2010) and hints at improvement in more recent graduation rates, as asserted in the OU advertisement’s text.

According to that information for the “2003 cohort” at the Norman campus, the four-year graduation rate was 32 percent; the five year rate was 57 percent; and the six-year rate was 63 percent.

Inquiries were made after CapitolBeatOK confirmed that information after discerning that data in the OU advertisement reflected a longer than four-year period. Questions to OU from this reporter were:

“What is the source for the six-year rate given in the advertisement -- the university's own analysis or one of the national benchmarks? … Please confirm the four-year graduation rate? I am also asking for the exact cost of that advertisement in The Oklahoman. If it ran in any other newspapers, please tell me which ones it ran in, and what the total cost for that was. Also, please tell me from which arm or related entity of the University was payment provided, the University itself, a Foundation, a private donor?”

The text of the original advertisement follows. (A “jpeg” photo of the advertisement as printed in The Oklahoman is provided with this story.) The text reads:

“Congratulations to OU Students, Faculty and Staff for Achieving the Highest Graduation Rate at a State University! 67.8%. This is up from 40.5% in 1994.

“President David Boren said, ‘This achievement is the product of a great effort by the entire University community. We have a task force hard at work with 70% already in our sights. High graduation rates give Oklahoma taxpayers a good return on their investment.’

“The University of Oklahoma is an equal opportunity institution.

“OU – The Pride of Oklahoma.”

Institutions of Higher Education throughout the nation are commonly referred to as “four-year colleges and universities.”

A common short-hand reference made for undergraduate education is to “four-year” programs, including at the website of the Oklahoma State Regents for Higher Education.

Although OU and OSU have the best graduation rates in the Sooner State, increasingly reference to “four-year” programs of undergraduate instruction describe a minority of students at the state’s two comprehensive universities, even those who graduate.

DHS “Pinnacle” draft envisions funding increase, more case workers, management reforms -- and families willing to provide foster homes

Mon, 02 Apr 2012 19:29:00 GMT

The first draft of an comprehensive improvement plan for child protective services at the Oklahoma Department of Human Services projects an agency organizational shake-up to bring more vertical (bottom-up) ties between policy and line work, a major boost in the number of case workers, and a projected $100 million annual increase (after the fifth year of implementation) in the agency’s budget.

The draft was released to news organizations today as it was posted on the DHS website and forwarded to three “Co-neutrals” who will review it with quasi-judicial authority granted as a result of the “D.G. vs. Yarborough” class action lawsuit and its resolution earlier this year.

The details of the draft proposal to implement a judicially-administered settlement negotiation, and the hefty price tag that accompanies the envisioned reforms, are clearly important.

However, a response to CapitolBeatOK from Deborah Smith, child and family services director at DHS, whose staff devised the document’s name (The Oklahoma Pinnacle Plan) might be a significant indication of both the possibilities and limits of government action in this challenging policy arena.

When Smith was asked to pinpoint the most important thing in the report – the increased resources, the policy changes or something else – she responded immediately, “The families.” She explained her brief response, saying “the most important is families, and the recruitment” of more of them willing to act as fosters for children from troubled environments.

Within the report, Pinnacle Point 1 deals with “recruitment and support of foster families,” and the requirement to have what the improvement plan characterizes as “an adequate number of foster parents (resource parents” for abused and neglected children.

The intention of the plan’s framers is to recognize that “Stable families provide children with life experiences they need for healthy physical, emotional and social development.” The agency “has not been able to meet this need in the past, but that is going to change. Children, especially young children, will not be in shelters.”

Closely tied to this first area of emphasis in the vision of the document’s framers is “Pinnacle Point 7” – to “engage community partners, other state agencies, the private sector and Tribes in supporting children and families involved with the child welfare system.”

Asked for more detail on her views about the role of churches in the new welfare reform effort, Governor Mary Fallin told CapitolBeatOK, “Faith-based organizations offer important services in our communities and can be a great help to families in the child welfare system with counseling and guidance programs as well as emotional and financial support. Faith-based organizations have the power to change lives in a way that government programs cannot and these groups will be an helpful partner as we work together to ensure our children are better protected.”

In addition to the faith-based community and Tribes, point 7’s outreach is to include foster parents, law enforcement, district attorneys and other lawyers, the court appointed special advocates (CASA), post adjudication review boards, judges, community providers, schools and businesses.

At the plan’s unveiling, Gov. Fallin joined House Speaker Kris Steele and Senate President Pro Temp Brian Bingman to support the draft. The trio did not answer questions from reporters, but each made clear a determination to reform the government’s system of child protection and welfare.

Fallin said, “We have no intention of falling short.” The chief executive recently recorded a Public Service Announcement (PSA) that will be used in recruitment of more foster parents and families.

Steele praised a bipartisan group from the House, four of his colleagues (including state Reps. Jason Nelson and Richard Morrissette of Oklahoma City) who are carrying legislation that will provide at the least the framework of the reform plan.

In his customary restrained manner, Senator Bingman calmly stated he believed the plan is historic – indeed, “a turning point for Oklahoma.” He called on the faith community to engage in transformation of services to children. He concluded, “We need good people to step up.”

Human Services Commission Chairman Brad Yarborough told reporters and various “stakeholders” it was “exciting to see the momentum that’s building” for reform.

As anticipated, the draft reform plan touches virtually every aspect of operations in child protective services in Oklahoma. In a January 6 report, CapitolBeatOK distilled likely implementation of the settlement agreement:

“Although distinguishable from a ‘normal’ class action lawsuit settlement in which a jurist directly orders expenditures, millions of dollars, perhaps hundreds of millions, will need to be reallocated within existing expenditures or financed through new appropriations to implement provisions agreed to by state officials, agency leadership and outside litigants.”

Smith sat with reporters for about a half hour after the political leaders left the room, answering questions about broad areas, and some specifics, in the Pinnacle Plan.

In a prepared set of comments, Smith reflected, “I told our staff to re-imagine what our child welfare services could be. The Pinnacle plan was crafted to reach these goals. This is an exciting time for everyone who works in child welfare services.”

Terri White, commissioner of Mental Health and Substance Abuse who acted as DHS Interim director for several weeks, was there in support of Smith’s narrative. State Finance Secretary Preston Doerflinger, on leave from that post to run DHS until a permanent director is hired this summer to replace Howard Hendrick at the agency’s helm, answered a few fiscal policy questions.

“Pinnacle Points” numbers one and seven are sketched above. Point 2 envisions reorganization of services into approximately 26 districts, aligned with the state’s District Attorney model. Point 3 aims to bring on another 200 child welfare specialists, 40 supervisors and to aim at the regional average for staff pay. Point 4 aims for the agency to integrate a “child welfare practice model” aimed at better service to children and families. Point 5 presses use of standardized means of review of work done; while Point 6 intends stricter use of data aligned with federal reporting standards.

In summary form, the seven points follow:

1. Expand quality placement options and supports to ensure safety of children in out of home care, reduce utilization of shelter care, and improve placement stability.

2. Create a system with clear delineation of roles, effective lines of communication and accountability throughout the system.

3. Increase the number of staff, reduce turnover and continue to improve the experience level and practice competencies of staff responsible for day-to-day work on child welfare cases.

4. Fully integrate the Child Welfare Practice Model into all training, policy, practice and performance expectations of child welfare staff at all levels.

5. Ensure work is of good quality, be transparent about the outcomes and hold all staff (front line, management, and program) and contractors accountable.

6. Ensure the safety of children in out-of-home care. Ensure children receive regular visitation by the assigned caseworker that focuses on ensuring safety, permanency and well-being outcomes.

7. Engage community partners, other state agencies, the private sector, and Tribes in supporting children and families involved with the child welfare system. [DHS] cannot do it alone.

The agency’s own press release and other detailed information is available here. The 45-page plan itself can be reviewed here.

Editor’s Notebook: Open Shop affirmed for state/local projects, Americans Elect gets ballot line for November, jobs lost in Poteau

Thu, 29 Mar 2012 22:36:00 GMT

From an Editor’s Notebook, progress for a significant state-level “open shop” law, a third party makes the ballot for November, and eastern Oklahoma legislators lament the loss of 200 good jobs at the cracker manufacturing facility in Poteau.

* * *

This morning (Thursday, March 29), the Senate Business and Commerce Committee approved (in essentially a party-line vote) House Bill 3043, legislation deemed the “Fair and Open Competition in Governmental Construction Act.” The bill would affect public buildings and public works funded with state and local tax money.

The proposal backed by Oklahoma’s chapter of the Associated Builders and Contractors (ABC) would prohibit state and local governments from requiring or prohibiting contractors from signing project labor agreements (PLAs) on construction projects filed with state/local tax dollars. (However, the legislation will not affect projects using federal funds.)

In other provisions, the legislation affirms the state’s right-to-work provisions, protecting the rights of workers to join or not join labor unions. Similar strictures for neutrality would extend to grants, tax abatements or other incentive programs; and to bid documents, project specifications or other controlling documents, if the law is passed.

Sponsors of the legislation include state Senators Bill Brown of Broken Arrow and Harry Coates of Seminole.

The House author is state Rep. Leslie Osborn of Tuttle. The measure cleared the House Economic Development, Tourism and Financial Services Committee on February 15, in a 10-4 vote. It then passed the full House, 58-28 (along party lines, but with a bipartisan group of 13 members not voting) on March 15.

* * *

Oklahoma Election Board Secretary Paul Ziriax announced today that Americans Elect has qualified for a political party line on the November ballot. David Boren, former U.S. Senator and a one-term governor of Oklahoma, helped the group gather some 90,000 signatures submitted to the state election board late last month.

At that time, Boren – stressing he was acting in his personal capacity and not as president of the University of Oklahoma, his current job, thanks Americans Elect “for assuring that Oklahomans and Americans will have a third alternative in the Presidential Election this November if it is needed.”

“If it is needed,” the group intends, Boren said, to hold a nationwide online “convention” to pick a Democrat and a Republican “to run as a team for President and Vice President. It would be the first bipartisan national ticket in modern history.”

Ziriax said Americans Elect had garnered 68,424 valid signatures in his petition process. The organization filed a “Notice of Intent to Forum a Recognized Political Party” on October 3, 2011.

In contrast, the state Libertarian Party fell short of ballot status. Activists filed their notice of intent On May 3, 2011, then turned petitions in on March 1. However, only 41,070 valid signatures were turned in.

To secure a ballot line, petitioners had to gather a number (51,739) equal to five percent of the votes cast in the 2010 general election for governor.

* * *

A bipartisan group of state legislators from eastern Oklahoma today expressed frustration with the announcement that Bremner Food Group is closing its Poteau cracker plant, leading to a loss of 200 jobs.

A flurry of comments about the announcement came to news organizations this afternoon.

Senator Mark Allen, a Spiro Republican, said he got the word yesterday (March 28) the plant’s operations are moving to Kentucky. Sen. Jerry Ellis, a Valliant Democrat, said the announcement will have “a major impact on the local economy.” The salaries of 200 workers, her reflected, turn over five times in the local economy.

State Rep. James Lockhart of Heavener, a Democrat, said company officials had assured him last year’s workforce reductions were seasonal and temporary. In comments sent to CapitolBeatOK, he expressed disappointment the company “never contacted my office in regards to the present closings.”

Ed Cannaday, a Porum Democrat serving in the House said he was frustrated to see the Legislature debating cut backs in business incentives, yet helpless “to find ways of protecting our jobs from being taken out of the state.”

Democratic state Rep. Brian Renegar of McAlester said, “The closing of Bremner comes at a time when the Oklahoma families are struggling with excessive fuel costs and overall increases in living expenses. Many times tax incentives go to businesses that ship jobs out of Oklahoma, while local small businesses like Bremner continue to struggle with a high cost of doing business.”

Curtis McDaniel of Smithville, another House Democrat, also decried the news, saying, “I pray for these families as they search for new jobs.”

At a Capitol Blue Room event, AT&T announces expansion of “Aspire” grant program to boost high school graduation, college and career preparation

Sat, 31 Mar 2012 22:43:00 GMT

A quartet of state leaders gathered today (Thursday, March 29) at the state Capitol Blue Room to announce that AT&T is launching a quarter-billion campaign aimed to boost high school graduation rates.

Oklahoma AT&T President Bryan Gonterman joined Governor Mary Fallin, Education Secretary Phyllis Hudecki and Higher Education Chancellor Glen Johnson to detail the program, a renewal and extension of a $100 million fund to provide grants and incentives from the AT&T Foundation to schools, universities, vocational technical programs and other organizations.

The AT&T Aspire commitment is for $250 million over five years to finance “socially innovative” approaches to encourage high school success, college and career readiness and other programs aimed at students at-risk of dropping out of high school. Aside from the grants, per se, the company has involved many of its 260,000 employees in support of the Aspire effort.

Organizations are encouraged to apply between now and April 18 to “pre-qualify” for grants. Requests for Proposals (RFPs) for the “Local High School Impact Initiative” are available at this site: www.att.com/education-news, (click then on the “Aspire Local Impact RFP” option.

Gonterman said, in response to a question from CapitolBeatOK, there has been national progress in using such programs to boost performance on ACT tests, and on graduation rates. Asked if adult Graduate Equivalent Degrees (GEDs) were eligible, Gonterman said the pro-approval process is designed to answer such questions and work with applicants to strengthen presentations.

ACT Test data for Oklahoma in 2010-11 showed the state’s students were, in summary, below the national average for most of the past two decades, and near the middle of the regional average in most categories.

In Oklahoma, a successful model funded in recent years was a collaborative effort between Northeastern State University and the Fort Gibson Public Schools. Other Aspire programs have been supported in the Tulsa Public Schools, Oklahoma City Community College, Thunderbird Academy, the Blackwell Schools and others.

The Fort Gibson-NSU program created a Community Outreach Recruitment Effort (CORE). AT&T asserts a 50 percent increase in ACT scores for participants at Fort Gibson High. Superintendent Derald Glover credited the AT&T Aspire program for the improvements. Jerry Cook, of NSU’s University Relations program, said early analysis of the CORE program indicated “significant” positive results.

Gov. Fallin commented, “Having a highly skilled and educated workforce is one of the keys to our state’s long-term economic success. Ensuring students graduate high school prepared to begin college or start a career will go a long way to helping us build the workforce we need to be competitive.”

Fallin said the Aspire program is a good fit with the “Complete College America” drive her administration is working with Chancellor Johnson to advance.

Johnson said the new program will be incorporated into the Higher Education system’s drive nearly to double the number of annual college graduates.

Attending today’s event to applaud the grant program were state Senators Harry Coates of Seminole, Josh Brecheen of Coalgate and Reps. Todd Thomsen of Ada and Steve Kouplen of Beggs.

AT&T Chairman and CEO Randall Stephenson had announced the extended commitment earlier this year at the second annual Building a Grad Nation Summit. He said the AT&T Aspire program aims at “an America where every student graduates high school equipped with the knowledge and skills to strengthen the nation’s workforce.”

Senate panel approves H.B. 2388, mandatory drug testing for TANF recipients

Tue, 27 Mar 2012 22:21:00 GMT

Working through a crowded agenda on Monday (March 26), the Oklahoma state Senate Committee on Health and Human Services sent forward a wide range of legislation, including one aiming to implement required drug testing for certain welfare recipients.

House Bill 2388 is a measure relating to “poor persons; requiring drug screening of applicants for state-provided assistance.” The bill would require drug tests of recipients in the program Temporary Assistance to Needy Families (TANF).

State Sen. Rick Brinkley of Owasso, a member of the committee, presented the bill on behalf of state Sen. David Holt of Oklahoma City, a Republican, who was unable to attend the hearing. A committee substitute was approved that removed a provision that had prevailed in the state House, requiring drug tests also be applied to politicians seeking election to the state House and Senate.

After approving the committee substitute, the panel heard from policy analysts for two state “think tanks” with expertise in government spending and social policy.

Kate Richey of Oklahoma Policy Institute, a progressive group based in Tulsa, said a similar policy exists or has existed in some states, with the longest experiences with such a policy coming from Michigan and Florida. The Fourth Amendment of the U.S. Constitution is a common basis for challenge to such legislation, she said. In Michigan, where a similar law was in effect after the early 1990s, the state incurred significant legal costs to defend the measure.

The Congressional Research Service points to cost shifting as a concern for drug testing mandates on the poor when individuals (rather than a subsidy program) bear the cost of testing – that is, that individuals will displace the cost of a drug screen by neglecting to buy food or other necessities.

Richey also contended the drug tests the state of Oklahoma now uses have been found to have 97 percent accuracy, while those private employers use average at 95 percent accuracy; she said the current screening program (which can lead to testing but that is not mandatory) should be retained.

State Sen. Connie Johnson of Oklahoma City, a Democrat, was interested in the likely cost of litigation to oppose the measure, and the implications of both false positives and false negatives in drug testing. In dialogue with Johnson, Richey noted that in some instances government reimburse welfare recipients for the cost of a test if the findings are negative for drug use.

Richey reiterated that some individuals – poor mothers, for example -- will not be able to afford to pay for drug testing themselves, or will displace other purchases to pay for a test and secure the TANF benefit.

Richey distributed her group's Issue Brief making a case against the bill, listing five main reasons “to think twice” about such proposals.

First, the brief contends, “Oklahoma already screens TANF applicants for substance abuse,” including alcohol. Second, pointing to a 2003 ruling in the Sixth U.S. Circuit Court of Appeals (Marchwinski v. Howard), “Mandatory drug testing of welfare applicants is unconstitutional.”

Third, the group's analysis asserts “Children will bear the brunt” of drug testing implementation. In support of this point, the brief noted, “Around 17,000 children receive food, clothing, shelter, and basic household necessities” through Oklahoma's TANF program.

Fourth, such a law “will cost more than it saves.” Oklahoma Policy believes, “the state will be on the hook … from a legal challenge it will likely lose.” In support of one of Richey's earlier points, the brief on this issue asserts, “denying impoverished parents access to assistance just shifts costs to other state programs, as those parents will be less able to adequately care for their children on their own.” Fifth, the brief concludes, “drug addition is a disease” – and should be treated as such. “Treatment, not sanction” should be the policy response. Opponents of mandatory drug testing of welfare recipients include the American Public Health Association and the National Association of Social Workers.

Ryan Kiesel of the American Civil Liberties Union (ACLU) of Oklahoma attended the hearing. Although he did not testify, he provided CapitolBeatOK with a two-page white paper arguing against H.B. 2388 on legal grounds – pointing to the Michigan case – and highlighting fiscal analysis that, he concludes, indicate the proposed law would not be cost-effective.

Kiesel, a former state representative, said in his white paper that such laws in Florida and Indiana did not discover high rates of drug abuse in the populations of welfare recipients. He also asserted the proposal is vague, and that mandatory drug testing intrudes upon rights of privacy.

Jonathan Small of the Oklahoma Council of Public Affairs (OCPA), a leading organization advocating free-markets and limited government, favored the legislation as he spoke, among other things, about his experiences working in Oklahoma City. He also offered a personal narrative touching upon friends and family he believes had abused TANF or other welfare programs that have few or no incentives toward good behavior in return for benefits.

In an interview with CapitolBeatOK Tuesday evening, Small elaborated his views, saying, “It is only responsible that temporary assistance programs have some minimum guidelines that make sure government programs are actually a hand up and not an aid to a person continuing unwise or risky behaviors that contribute to an individual’s need for assistance.

“Drug testing for receipt of specific targeted benefits is no different than income requirements for TANF or Medicaid, or wage or new job requirements for business incentives like the Quality Jobs Act or the Home Office Credit. All such requirements are for the purpose of making sure targeted government programs are successful.

“In my time working with children or individuals from poor households over the last 15 years, many times it is the availability of a government program – which does not strongly encourage or incentivize productive change in behavior -- that results in the program doing more harm than good.”

He contended, “This reform is a common sense way to help individuals start taking responsibility for their actions and adopt behaviors that make the individual and their dependents more responsible and more likely to succeed, thus making sure the program is truly temporary.

“Passing drug tests is a common requirement of employers and thus preparation for maintaining a job. A policy reform such as this also allows for positive individuals who can provide accountability to be involved (in the case a parent were to fail the drug test) and provide a better environment for any children depending on the program.

“One of the most dangerous things for children is for their immediate parent or guardian to have a drug or addiction problem, apply for benefits, and then be able to ignore the other positive influences and shelters in their life because a government program exists and lets them get by or even abuse benefit programs by supplanting the benefits and diverting cash to destructive behaviors.

“Federal law clearly allows for sanctioning welfare recipients who test positive for use of controlled substances, and isolated hurdles placed by an activist appeals court -- or a single judge whose recent stay is disagreed with by scholars and has already been appealed -- should not deter lawmakers.

“This reform is just and considerate of children -- and it is a reform that is needed.”

At Monday's committee hearing, questions and debate on the measure were brief, but opposition points likely foreshadowed issues that will be raised in eventual floor consideration.

Senator Jim Wilson of Tahlequah said the measure would “beat up on poor women” and, further, there was no evidence such a law is needed.

Sen. Johnson thanked both presenters, saying legislators “need the benefit of valid information.”

Johnson expressed concern that the legislation might scare off potential recipients, including poor mothers unable to afford to pay for the drug test themselves. She said she wondered why the provision applying drug tests to candidates for office had been removed, asking why there is a “focus only on this sub-set” of the population, i.e. welfare beneficiaries.

Calling addiction “a very dastardly disease,” she echoed Richey's contention that the focus should be on addiction. Johnson also said mental health issues come into play, and that a non-punitive approach would be preferred.

Senator Brinkley repeated his support for the measure in brief comments during the panel's deliberation.

The measure cleared the panel in a vote of 5-3. Supporting it were the chairman, Brian Crain of Tulsa, and members Steve Russell of Oklahoma City, Rob Johnson of Kingfisher, Dan Newberry of Tulsa and the presenter, Owasso's Brinkley.

Voting against the proposal were three Democrats, Sens. Johnson and Wilson, and Sean Burrage of Claremore, the panel's vice chairman.

House Bill 2388 now moves to the full Senate.

H. B. 2388 was carried in the lower chamber by state Rep. Guy Liebman, an Oklahoma City Republican. The measure passed 82-6 on March 12.

In the lower chamber, opposition came from five Democrats (Rebecca Hamilton of Oklahoma City, Jeannie McDaniel of Tulsa, Richard Morrissette of Okalhoma City, Anastasia Pittman of Oklahoma City and Emily Virgin of Norman) and one Republican, Charles Key of Oklahoma City

Not voting on the bill were 11 members, including Republicans Mike Christian of Oklahoma City, Ron Peters of Tulsa, Sue Tibbs of Tulsa, and John Trebilcock of Broken Arrow, and Democrats Wes Hilliard of Sulphur, Steve Kouplen of Beggs, Seneca Scott of Tulsa, Mike Shelton of Oklahoma City, Jabar Shumate of Tulsa and Cory Williams of Stillwater.

All of the remaining members of the House supported the measure.

In ruling on lawsuit against parents brought by Union and Jenks public schools, Tulsa judge kills Oklahoma’s special needs scholarship program

Wed, 28 Mar 2012 17:48:00 GMT

Tulsa, Oklahoma – A district judge has struck down Oklahoma’s Lindsey Nicole Henry Scholarships, a program designed to assist special needs children.

Judge Rebecca Nightingale today (Tuesday, March 27) granted a request for summary judgment against the parents of special needs children brought by the Jenks and Union Public school Districts.

Jerry Richardson of Rosenstein Fist and Ringold argued the case, and two other lawyers for the controversial law firm assisted him in preparing for the case.

Representing the parents of special needs children was the Becket Fund’s Eric Baxter and Tulsa attorney Lance Freije. Baxter and Freije told CapitolBeatOK parents of special needs children in the two districts plan to appeal the decision.

This afternoon, attorneys said they would seek a stay of the judge’s decision – delivered verbally this morning -- to allow an appeal to the state Supreme Court.

Oklahoma Solicitor General Patrick Wyrick, from the office of Attorney General Scott Pruitt, argued for the constitutionality of the historic legislation, passed with bipartisan majorities and signed into law by former Governor Brad Henry, a Democrat.

State Rep. Jason Nelson, an Oklahoma City Republican who wrote the law, said in a statement sent to CapitolBeatOK, “I will keep fighting for the families and fighting to uphold this very necessary law. I support an appeal to the Supreme Court and a motion for a stay of the judge’s ruling pending an appeal. The strong reason we needed this law in the first place still stands – to help families of special-needs students who are not being served by public schools.”

Nelson and other critics of the decision are concerned it might have far-reaching implications – a point made by Wyrick in his arguments to the court before Judge Nightingale’s ruling.

Nelson said, “The judge’s ruling is baffling and will likely impact many state programs affecting everything from preschool to Medicaid. The judge ruled on the merits without comment, perhaps because her decision is indefensible.”

The two school districts sued parents to stop them from accessing the scholarship program, funded with taxpayer money designated for handicapped children who have an individualized education Program (IEP). Nelson echoed Wyrick, who argued to the court the rationale brought by opponents makes it possible for the government to sue Medicaid patients who are treated at Catholic-affiliated hospitals.

Nelson argued, “This is a horrible precedent. It’s like suing grandma for using Medicare. I will keep fighting to defend parents’ rights to do what is best for their children. This is the standard everywhere else in state government. This ruling now calls into question other critical programs in health care, foster care, prison ministries, preschool and higher education tuition grants.”

Nelson strongly supported the individuals sued by the two districts, saying, “These parents have displayed great courage while going through an unprecedented legal assault by two government school districts. They have not backed down, and neither will I.”

Nelson praised Pruitt, the Becket Fund (a national group supporting education choice) and Bob Latham of the School Choice Coalition for defending the parents of special-needs children.

Nelson thanked the Becket Fund for coming to the aid of the parents of special-needs children, as well as Attorney General Scott Pruitt, who defended the law, and Bob Latham, local council for the School Choice Coalition. He also thanked state Sen. Patrick Anderson of Enid, who co-authored the law, and the bipartisan majority of legislators who in 2010 “supported these parents.”

Nelson concluded today’s statement, saying, “Most of all, I want to thank former Governor Brad Henry and his family for supporting the program and allowing the law to be named for Lindsey.”

Judge Keele pointed to a higher education program that allows students to use state scholarships to attend private religious schools in post-secondary years.

While the exact fact situations in the other states are in some respects distinguishable from the litigation that came before Judge Nightingale in Tulsa, arguments were made this morning referencing each case and drawing parallels to the Oklahoma law, especially in reference to the Indiana case.

State officials respond to Tulsa’s anti-choice legal decision

Wed, 28 Mar 2012 00:44:00 GMT

Two statewide elected officials have decried the decision of Judge Rebecca Brett Nightingale, issued at the behest of the Jenks and Union Public School Districts, intended to shut down the Lindsey Nicole Henry Scholarship program for special needs children.

A Democratic state representative this afternoon applauded the jurist’s edict, issued verbally, while the vice president of a leading policy think tank said it was a temporary setback in the march toward “educational freedom.”

Attorneys for parents in the two districts, individuals directly affected by the decision, said they would seek a stay of the order, and appeal the decision to the state Supreme Court.

Attorney General Scott Pruitt’s spokeswoman, Diane Clay, said in a statement sent to CapitolBeatOK, “We're disappointed in the trial court's decision, and will appeal to the Oklahoma Supreme Court where we're hopeful the law will be upheld. The Attorney General's Office will continue to defend the constitutionality of the Lindsey Nicole Henry Scholarship and its benefits for children with disabilities.”

Patrick Wyrick, solicitor general for Oklahoma and a top member of Pruitt’s legal team, argued in favor of the constitutionality of the legislation at this morning’s hearing before Judge Nightingale at the Tulsa County Court House.

Superintendent of Public Instruction Janet Barresi also commented in late afternoon, saying, “While I am disappointed in today's district-level ruling and the undue stress and burden it has placed on families with special needs children, I also understand this is not the end of the story. I fully anticipate these families will move forward quickly with an appeal to the Oklahoma Supreme Court. I am confident the facts of the case will prevail, and this incorrect ruling will be overturned."

State Rep. Ed Cannaday, a Porum Democrat who opposed the scholarship program when it passed in 2010, deemed it a “voucher” system and commended Judge Nightingale’s decision.

Cannaday said, in comments sent to CapitolBeatOK, “I am glad to see that the legal process is working in this case to invalidate a law that is part of the Republicans’ war on public education. I have often stated that privatization of education benefits the select few, and not all of our citizens.”

He asserted, “Public education is a right, and that right is endangered by laws that allow private institutions to utilize state funds. Private schools are not accountable under the democratic process, but every citizen can vote for school officials such as the Superintendent of Public Instruction.”

From the Oklahoma Council of Public Affairs (OCPA), came the statement of Vice President Brandon Dutcher, who commented, "The fact that the government can use taxpayer dollars to sue law-abiding citizens — especially the parents of special-needs children — is nothing short of appalling, and should be of great concern to all Oklahomans.

"At a time when educational freedom is advancing in Oklahoma and throughout the U.S., this temporary setback is disappointing. The research continues to show that school choice improves public schools and saves taxpayers money — all while rescuing the children who need it most. Given that track record, a minor setback like today’s isn’t going to thwart the continued march toward educational freedom."

Dutcher was among about 20 spectators in court to watch this morning’s proceedings. About half of attendees were professional staff from the two taxpayer-financed districts that sued the parents of special needs children benefitting from the program.

The law passed the Legislature in 2010. The lead sponsor of the legislation, state Rep. Jason Nelson of Oklahoma City, has promised to defend the measure and the families who have benefitted from its provisions.

Southern crude oil pipeline work to take about one year, creating 4,000 jobs total, 600 or more of those will be in Oklahoma

Tue, 27 Mar 2012 18:20:00 GMT

Robert Jones, vice president for the privately-funded Keystone XL project, told CapitolBeatOK the southern leg of the project will take about one year to finish once all permitting is in place.

Jones said he is optimistic the Obama administration will ultimately give a green light to build a pipeline from Canada through Oklahoma all the way to the Gulf Coast. Jones told reporters that once full-scale work on the southern pipeline begins this summer, the project should be finished in nine to 12 months.

Company officials estimate the project will create at least 600 direct jobs in Oklahoma. Another 400 jobs will be triggered by the pipeline work for a total of about 1,000 jobs in Oklahoma.

In all, work on the southern end of the envisioned pipeline will lead to a total of 4,000 jobs in construction and related fields.

The entire pipeline project, as envisioned by TransCanada, would create around 9,000 jobs if a pipeline is built from Canada south to the Gulf Coast, passing through Cushing and on to the Gulf Coast, Jones and company officials said Thursday (March 22).

Jones’ comments came as he met with about two dozen reporters at the Cushing, Oklahoma, pipe yard where President Barack Obama spoke about what his administration calls an “all-of-above” energy policy, including solar, wind, oil and natural gas.

Jones believes the economic and energy reasons to build the entire pipeline “have not changed.”

Discussing the issue with reporters, Jones said, “The U.S. consumes over 15 million barrels [of oil] every single day, and they import around 11 million barrels. That’s about 70 percent of their needs. So our decision to proceed with the … pipeline project will help move this [crude] oil that is involved here in Cushing, and get it to the largest oil refining complex in the world on the Gulf Coast.

“Now, Americans understand the importance of pipelines. There is over 200,000 miles of oil pipelines in the United States and almost 2 million miles of pipelines throughout the United States.”

Jones commented that observers need “remember … this project is completely privately funded. There is no government subsidies, there are no tax dollars of anything being funded. Our customers, the refiners along the Gulf Coast, have asked us to build this project.

“We’re committed to proceed with not only the Gulf Coast project, but also the Keystone XL project. We also know that this project is going to bring thousands of jobs, very important jobs. The Keystone XL project and the Gulf Coast project is in the national interest, because it helps with energy security. It helps us strive toward energy independence.”

Jones stressed, before answering questions from reporters, “the Keystone XL pipeline is not an export pipeline. In fact, It is meant to fill that need, to reduce our exports. It will displace oil that comes from Venezuela and countries in the Middle East. This is the oil that is currently being refined in the Gulf Coast.

“There is very little Canadian oil being refined in the Gulf Coast. And, right now, oil in the mid-continent [area] doesn’t have enough pipeline capacity to get to the Gulf Coast. So, we have an opportunity here, an opportunity to displace oil from OPEC nations with secure and reliable U.S. and Canadian crude oil.”

Jones consistently declined opportunities to criticize the Obama administration over delays in the project. He said he was “very happy to hear the president’s comments” concerning the southern pipeline work. Toward the end of his time with journalists, Jones said he agreed President Obama is “a friend” of the pipeline project.

Questioned by reporters as to whether or not the Obama administration’s recent announcements advanced things for the project, he responded, “What I can tell you is that we’re working with the federal agencies. The lead agency that we’re working with is the U.S. Army Corps of Engineers. Also, we’re working with U.S. Fish and Wildlife. In order to start fill construction, we anticipate getting all of the permits needed by about mid-year.”

He said, “I haven’t had a chance to read the executive order, but we’re getting good cooperation. Again, we’re scheduling our crews and we can be under full construction by mid-year.”

He said, in dialogue with CapitolBeatOK, “Once we start construction it will take us one year, less than a year … to complete construction to the Gulf Coast.”

Questioned about the capacity of the pipeline, Jones said, “This is a 36-inch pipeline. The initial capacity will be around 5 and 700,000 barrels. Obviously, this pipeline needs to be up-streamed portion to get to its full capacity, which is 830,000 barrels. This is just the very important first part. Once we build the Keystone XL pipeline the capacity will go to 830,000 barrels. …

“Now, the Keystone pipeline system – there’s already a pipeline in service – it moves around 600,000 barrels. So the combined capacity will be approximately 1.4 million barrels a day, it’s a pipeline system.”

Asked again if the administration’s moves last week had sped up the process, he replied judiciously, saying, “I think what I heard today is that the administration will continue on with its cooperation, and that the schedule we had in place to start full construction by mid-year, will be secure.”

As for the proposed rerouting of the northern leg of the project, Jones told reporters, “We are in the process of finding a new route through Nebraska that avoids the Sand Hills. TransCanada is committed to doing that. We are awaiting security on that process. We will then refile for a presidential permit.

“We anticipate that will occur in the next few months and that we will be reapplying at that time. Hopefully, we will be able to start construction next year in regards to the Keystone XL project.”

Asked if he was confident the president would approve the northern tier along a new route, Jones commented, “I feel that what I heard he is going to do is he’s going to ‘play it straight.’ That’s what I heard. In other words, what we’re going to do is we’re going to file. We are going to review the process. We’ve done a tremendous amount of work. I anticipate that they will follow that process.”

At the moment, much of the focus for a possible northern extension is on Nebraska, and that state’s Department of Environmental Quality.

Concerning the southern work, Jones said, “We have enough contracts to proceed with the project.” His words in response to CapitolBeatOK’s question about total jobs were: “We anticipate direct construction jobs to be about 4,000 jobs and then, from the Keystone XL portion, another 9,000.:

Jobs in Oklahoma for the southern work were put in the “600 to 800” range, but Jones said, “That would be just for the pipeline construction … There is also Cushing terminal construction, there’s pump station construction, there’s inspection, engineering. So, there is probably about a thousand jobs directly impacted.”

The widely reported Cushing speech was scheduled in response to a White House request. Jones observed, “It happened very quickly. We were asked by the White House if we would host this event. This was an event for the White House. It was not initiated by us. We were just being cooperative.:

One reported noted that some local companies had been critical of the president. Jones responded carefully, saying, “You know, TransCanada is in the business of transporting energy. We do an incredibly good job. We have a very good reputation. What I think is what we’re seeing is a recognition of how important energy is to the economy, and how important this project is with regards to solving some of the problems we have here.”

Asked to outline the construction process, he said, “We’re going to start … in a number of sections. In order to get this done in nine to 12 months, we’re going to need to have multiple crews working. So, they’ll either be working at pump stations, or Cushing terminal, or pipeline spreads that Dave can talk about. But we have one that will start right away here in Cushing.”

As for other firms that might be involved, he reflected, “I would say that there are a number of proposals, and that there is a need for a number of projects as well. There is a significant bottleneck here, and there will be future growth. So, I would suggest that they move on more than one project.”

Asked to clarify his point about the pipeline contributing to reduced need for crude oil imports, he stressed, “This oil needs to get to those refineries because right now they import.”

Jones said he did not know “the exact tonnage” of pipe in Cushing, but “the first 41 miles is in this yard.”

He disclosed the southern project already has in hand most of the land easements and agreements needed to proceed. In response to questions, the characterized that as “99 percent’ complete and said he did not think eminent domain would be required for any of the work, but would be used as a “last resort.”

When a reporter asked Jones if he now considered the president a friend of the pipeline project, he responded, “I think that’s what we heard. That’s certainly what I heard today.”

Oklahoma Democrats thrilled to greet President Barack Obama

Sat, 24 Mar 2012 21:42:00 GMT

The visit of President Barack Obama to Oklahoma continues to provoke some critical commentary, but many Democrats in the state are thrilled he came to what has been dubbed “the reddest of the Red States.”

CapitolBeatOK interviewed several party leaders in the course of the president's two-day visit. State Senator Judy-Eason McIntyre, a two-term Democrat leaving the Legislature later this year, said, was thrilled to be part of the event.

She reflected, “I hope that as a result of this that some of the concern about our president that we get from Oklahoma voices, [that this] will provide some insight into this president. I can go away knowing that he has made a difference, that he has educated some Oklahomans about what our energy possibilities are.”

Obama focused on what his administration has deemed an “all-of-the-above” strategy, aiming to support wind and solar power on the “green” side of things, but taking new steps to expand use of Natural Gas and such practical moves as the president's decision to expedite construction of the southern portion of the Keystone XL pipeline.

State Rep. Jabar Shumate, also a Tulsan, told CapitolBeatOK, “I would never have believed I'd be standing in Ripley, Oklahoma, preparing to hear from President Barack Obama. It's an exciting day for Oklahoma because the number one thing he's coming to talk about is jobs.

“As part of his energy strategy, there is going to be an extension of the Keystone pipeline. Building from here to the south, that means thousands … of jobs here in Oklahoma. That's a wonderful gift, and I'm glad he's here to give it.”

Shumate spoke cautiously about the continuing debate on taking the pipeline project north to Canada – or, perhaps more accurate, south from there. Just a few months ago, the president brought that process to a halt, but soon thereafter indicated advocates could reapply for federal permits, seeking an alternate route that would not provoke the negative reaction from environmentalists and others.

Labor unions have joined energy industry sources, and conservative activists, in supporting the pipeline project in both directions. State AFL-CIO President Jimmy Curry was among the leaders who attended the president's Cushing speech.

Concerning the pipeline, Shumate commented, “I know that there are lot of things to be worked out. I think what Oklahoma has to be concerned with is the jobs that are going to be created here in this state. I am excited that the president of the United States is saying I want to move this project along right now, here. We need jobs.”

He stressed the president had moved to knock down remaining impediments to completion of the project from Cushing to the Gulf Coast, and said, “We'll have a stronger Oklahoma because of it.”

Eason-McIntyre and Shumate were interviewed the morning of Obama's visit in the Ripley High School parking lot, a few miles away from the president's speaking venue. The school lot served as a staging area for reporters and many of the invited guests, mostly Democrats.

On the hilltop near Cushing, MidTown Oklahoma City attorney Steve Cortes was among the crowd of Democratic activists cheering the president's words on Thursday.

Cortes joined former state Treasurer Scott Meacham, former gubernatorial Chief of Staff (for Brad Henry) Gerald Adams and a dozen other alumni of the Henry years for an improptu “reunion” before and after the president's speech at the pipe yard.

Cortes took a break from door-to-door campaigning to make the trip. He told CapitolBeatOK, “I'm here because the president is here. It's a very exciting event. I'm happy to see so many people make it from Oklahoma City and from across the state. It's always fantastic to welcome a sitting president to our state.”

Others among the who's who of prominent Democrats at Obama's speech were state party Chairman Wallace Collins, former Attorney General Drew Edmondson, state Reps. Joe Dorman of Rush Springs (an advocate of the pipeline), Mike Shelton of Oklahoma City, Anastasia Pittman of Oklahoma City, Emily Virgin of Norman, Danny Morgan of Prague, and Minority Leader Scott Inman of Del City, and Senators John Sparks of Norman, Tom Aldelson of Tulsa, and Al McAffrey of Oklahoma City.

Some Republicans have passionately criticized President Obama's energy policies. In the news media, some have regarded the visit to Oklahoma and three other states as mere a rolling “photo op.” A measured critique came from one Republican who attended the speech, state Rep. Lee Denney, who represents the Cushing area at the Capitol.

Oklahoma Rep. Lee Denney attends Obama speech, welcomes him to Cushing and applauds pipeline progress -- but disagrees on priorities

Sat, 24 Mar 2012 02:20:00 GMT

Lee Denney -- the Republican who represents Cushing, Oklahoma, in the state House of Representatives -- welcomed President Barack Obama to her community yesterday.

The pair had a brief exchange characterized as pleasant, but Denney made it clear he did not “go far enough for me -- because far enough for me would have been in the next 30 days to sign the presidential order to open up the opportunity to build the pipeline from Hardesty [in Canada] down to Cushing. But, he did give us a glimmer of hope that he’s open to signing that.”

Denney told CapitolBeatOK the “Keystone XL pipeline guys” were happy to see him and the message he brought to the windy and cool hilltop north of Cushing and south of Stillwater.

She said, “I do think that is true. I’ve heard several people say that this is the first speech he’s even mentioned that he will revisit that topic of signing that presidential order. I think it gives us all hope.”

During an impromptu interview with this news website and The Tulsa World, Denney expressed happiness, “We’re going to get the Keystone pipeline project under way from the Cushing area down to the Houston area. He gave us hope he’s going to sign a presidential agreement [executive order] from Hardesty, Canada down to Cushing. That’s what we need to move the oil glut out of this area.”

She was happy she got to shake his hand, continuing, “I welcomed him to my district, and he said that we had good hospitality. So, I was very glad that we’ve been friendly to the president.

“You know, … a town of 8,000 people, I did a little research, and to my knowledge we’ve never had a sitting president visit Cushing. So, it’s big for a city like Cushing.”

Denney said the city had no problem handling its share of logistics for a presidential visit: “We have the infrastructure of the oil and gas pipelines. We are very up-to-date, I’d say state of the art as far as our security.”

When a reporter asked Rep. Denney if she felt “kind of lonely as one of the few Republicans in the crowd,” she commented, “You know, I did look around and notice that. I’m sure I wasn’t the only Republican, but I might have been the only Republican from the state Legislature.

“You know, if we’re going to get things done in this country, we’re going to have to reach across the aisle and work in a bipartisan manner.” She pointed out that Dave Lopez, the Secretary of Commerce and a member of Governor Mary Fallin’s cabinet, was also in attendance.

Pressed on the political and electoral effect of President Obama’s visit, she reflected, “Probably it will help some. I don’t know that it really hurts any Democrat. It’s just an honor to have a sitting president come to this part of the country.”

In a commentary circulated earlier this week, Rep. Denney wrote, “The U.S. Energy Information Agency forecasts that fossil fuels will account for 77 percent of the growing U.S. energy consumption in 2035, down slightly from the 83 percent today. Considering the vital role oil and gas will play over the next 20 years, it may be premature to shun these resources. But that’s exactly what we’re seeing.

“Since his inauguration, President Obama has imposed a yearlong moratorium on Gulf drilling, instituted a five year plan which limits drilling access off the coasts and in Alaska, and denied resources from Canada via the Keystone XL pipeline.

“These policies have ceded much of our energy security, jobs, and influence over the price of crude to countries on the other side of the world. Now, we are seeing the effect of these poor decisions as gas prices increase uncontrollably.”

Denney explicitly rejected the Democratic president’s recent push for tax increase on oil and gas firms, levies that would reach some $4 billion.

She contended, “This move wouldn’t reduce crude oil prices. Instead, by removing a manufacturer’s deduction afforded to oil and gas refiners, these taxes could actually increase the cost of gasoline. The President and his cabinet have time and again demonstrated they simply don’t understand energy policy.”

She noted that Steve Chu, Obama’s secretary of Energy, has said the country needs to boost the level of gasoline prices to those in Europe, about $10 a gallon.

Rep. Denney concluded her commentary by saying, “As global demand creeps upward, it is important that the U.S. moves to secure oil and gas resources domestically and abroad to support our own growing demand. Instead, President Obama is pushing policies that are overly reliant on expensive and non-existent clean energy technologies, while at the same time boosting traditional fuel costs. As we try to recover from a recession, increasing fuel prices in this underhanded manner isn’t an energy policy but an energy disaster.”

President Barack Obama arrives in Oklahoma for energy speech

Fri, 23 Mar 2012 05:31:00 GMT

OKLAHOMA CITY – President Barack Obama arrived in the Sooner State Wednesday night. Air Force One was “wheels down” at Tinker Air Force Base at about 9:25 p.m. Greeted by Mayor Mick Cornett, the president gave no remarks after getting off the aircraft.

Also greeting Obama were Midwest City Mayor Jack Fry, two ranking officers from the Base, and an Air Force noncommissioned officer.

The president cheerfully greeted Airmen and selected dignitaries who had waited patiently on the runway next to a hanger at the repair depot and maintenance facility, one of the most significant installations in the Air Force. He did not answer questions from reporters at end of his long day. He jogged briefly as he moved toward the cheering group.

The president had already visited Nevada and New Mexico as pat of his “all-of-the-above” energy tour, touting his support for solar and wind power, statistics showing booming oil production and what analysts say may be a new push to use natural gas more effectively.

While the president has many conservative Republican critics, Mayor Cornett told CapitolBeatOK he and other energy advocates are glad the Democratic chief executive has come to visit this city and state, with one of the nation’s lowest unemployment rates and a vibrant oil sector.

In Cushing, where the president is speaking Thursday morning, pro-energy activists with Americans for Prosperity planned to rally today in support of the Keystone XL pipeline’s construction, which the president halted earlier this year. Obama’s administration subsequently agreed to let a pipeline project advance from the Cushing storage facility to the Gulf coast, and said TransCanada and other advocates can apply for a new route to Canada.

Letter to the Editor of CapitolBeatOK

Fri, 23 Mar 2012 02:26:00 GMT

To The Editor:

I found a very surprising article concerning the state Department of Education in the March 20 edition of The Oklahoman. This, after the breaking story earlier this month about state Superintendent Janet Barresi's predecessor, Sandy Garrett.

Let's do some brief analysis here by breaking down each event separately so we can compare:

SANDY GARRETT'S ADMINISTRATION:

•Two accounts found totaling $2.3 million over the course of 10 years

•Monies were collected from private sources to fund two events/year = Encyclomedia and The Superintendent's Annual Leadership Conference

•Non-profit Oklahoma Curriculum Improvement Commission held both accounts composed of private funds

•Monies transferred in 2010 to Oklahoma State School Boards Association (a non-profit association) who managed the accounts for 25,000/yr fee (Barresi closed and had remaining $783.51 deposited into Foundation for Innovation in Education account though Communications Director Damon Gardenhire said initially they did not - they were deposited in a revolving fund - oops?)

•Former Republican State Chairman, auditor Gary Jones, maintains both accounts were "off book" and unknown to the boards of either OCIC or OSSBA

•Donations to the accounts made by vendors that had, "multimillion contracts with the Education Department for various education services"

•Donations went to pay for "alcohol, food and lodging" including a chocolate fountain and kegs of beer

•Food and alcohol at at 2005 reception cost $12,694.

JANET BARRESI'S ADMINISTRATION:

•One account found with no dollar figure given according to the Oklahoman but possibly $213,747 over the course of one year (right about $2.3 million over 10 years at that rate)

•Monies were collected from private sources to fund Innovation 2011

•Non-profit Foundation for Innovation in Education held the account composed of private funds

•Foundation board (paper did not indicate how board members were chosen) managed the account

•Finances handled by CPA

•It is unclear how Foundation board members were chosen but board dissolved directly after meeting was held

•Origination of donations to account not disclosed by the Oklahoman

•Auditor Gary Jones said he knows about Barresi's account, but did not look into it

•Donations went to pay for vendor space, rooms, convention space and audio gear (as per The Oklahoman, totaling approximately $154,226)

•Food (without alcohol) for reception and superintendent's lunch cost $12,612.

I think we can stop there, as I hope most everyone is getting the picture.

Apparently, misdeeds are in the eye of whomever's party is represented by the person sitting in the chair. Yes, there has been impropriety alleged by the OSDE under the tutelage of Sandy Garrett. Here is an interesting blog alleging firsthand (hearsay) knowledge.

Certainly, one can peruse the entire state Auditor's report for themselves to determine exactly how far reaching was this alleged "corruption" at Garrett's OSDE.

I think two things are important to note here:

1.This sounds just like the very partisan stink that was raised over Janet Barresi's initial meeting with her board that led to Republicans producing legislation (before the air had even cleared) to give her power over her board.

2.Janet Barresi - as her first order of business as State Superintendent - funded no less than three state employees with private funds. The board asked that the AG's opinion be sought on the legality of the matter of the hires, but Barresi simply blocked the motion (in imperious fashion) during the regular board meeting. Senator Andrew Rice then asked for a ruling instead. Attorney General Scott Pruitt ruled against Barresi, calling the hires (who had been working in the department prior to the board meeting at which they were to be approved for hire - against state law) usurper(s) who lacks the authority to carry out the official duties of the state”?

Where is the persecution/prosecution of/for Dr. Barresi? Why does she get a 'pass'? Blind allegiance by members of her own party to the party?

Sorry, I'm a Republican, but I don't think this looks good at all for our team. Makes one wonder which old saying applies here? "Judge not lest ye be judged?", "Do unto others..."?, "What's good for the goose is good for the gander"?

Editor’s Note: CapitolBeatOK was among credentialed reporters at the Thursday (March 22) speech President Barack Obama gave at the Pipe Yard near Cushing, Oklahoma. An edited text of the speech follows.

Sat, 24 Mar 2012 17:19:00 GMT

"Keep it Going, Oklahoma" -- President Obama’s speech in Cushing

Hello, Oklahoma! … It's wonderful to see you. It is good to be back in Oklahoma. I haven’t been back here since the campaign, and everybody looks like they're doing just fine. Thank you so much for your hospitality. …

Yesterday (March 21), I visited Nevada and New Mexico to talk about what we're calling an all-of-the-above energy strategy. It’s a strategy that will keep us on track to further reduce our dependence on foreign oil, put more people back to work, and ultimately help to curb the spike in gas prices that we're seeing year after year after year.

So today, I’ve come to Cushing, an oil town, because producing more oil and gas here at home has been, and will continue to be, a critical part of an all-of-the-above energy strategy.

Now, under my administration, America is producing more oil today than at any time in the last eight years. That's important to know. Over the last three years, I’ve directed my administration to open up millions of acres for gas and oil exploration across 23 different states. We’re opening up more than 75 percent of our potential oil resources offshore. We’ve quadrupled the number of operating rigs to a record high. We’ve added enough new oil and gas pipeline to encircle the Earth and then some.

So we are drilling all over the place -- right now. That’s not the challenge. That's not the problem. In fact, the problem in a place like Cushing is that we’re actually producing so much oil and gas in places like North Dakota and Colorado that we don’t have enough pipeline capacity to transport all of it to where it needs to go -- both to refineries, and then, eventually, all across the country and around the world.

There’s a bottleneck right here because we can’t get enough of the oil to our refineries fast enough. And if we could, then we would be able to increase our oil supplies at a time when they're needed as much as possible.

Now, right now, a company called TransCanada has applied to build a new pipeline to speed more oil from Cushing to state-of-the-art refineries down on the Gulf Coast. And today, I'm directing my administration to cut through the red tape, break through the bureaucratic hurdles, and make this project a priority, to go ahead and get it done. Now, you wouldn't know all this from listening to the television set.

This whole issue of the Keystone pipeline had generated, obviously, a lot of controversy and a lot of politics. And that’s because the original route from Canada into the United States was planned through an area in Nebraska that supplies some drinking water for nearly 2 million Americans, and irrigation for a good portion of America's croplands.

Nebraskans of all political stripes -- including the Republican governor there -- raised some concerns about the safety and wisdom of that route.

So to be extra careful that the construction of the pipeline in an area like that wouldn’t put the health and the safety of the American people at risk, our experts said that we needed a certain amount of time to review the project. Unfortunately, Congress decided they wanted their own timeline -- not the company, not the experts, but members of Congress who decided this might be a fun political issue, decided to try to intervene and make it impossible for us to make an informed decision.

So what we’ve said to the company is, we’re happy to review future permits. And today, we’re making this new pipeline from Cushing to the Gulf a priority. So the southern leg of it we're making a priority, and we're going to go ahead and get that done. The northern portion of it we're going to have to review properly to make sure that the health and safety of the American people are protected. That’s common sense.

But the fact is that my administration has approved dozens of new oil and gas pipelines over the last three years -– including one from Canada. And as long as I’m President, we’re going to keep on encouraging oil development and infrastructure and we’re going to do it in a way that protects the health and safety of the American people. We don’t have to choose between one or the other, we can do both.

So if you guys are talking to your friends, your neighbors, your coworkers, your aunts or uncles and they’re wondering what’s going on in terms of oil production, you just tell them anybody who suggests that somehow we’re suppressing domestic oil production isn’t paying attention. They are not paying attention.

What you also need to tell them is anybody who says that just drilling more gas and more oil by itself will bring down gas prices tomorrow or the next day or even next year, they’re also not paying attention. They’re not playing it straight. Because we are drilling more, we are producing more. But the fact is, producing more oil at home isn’t enough by itself to bring gas prices down.

And the reason is we’ve got an oil market that is global, that is worldwide. And I’ve been saying for the last few weeks, and I want everybody to understand this, we use 20 percent of the world’s oil; we only produce 2 percent of the world’s oil. Even if we opened every inch of the country -- if I put a oil rig on the South Lawn -- if we had one right next to the Washington Monument, even if we drilled every little bit of this great country of ours, we’d still have to buy the rest of our needs from someplace else if we keep on using the same amount of energy, the same amount of oil.

The price of oil will still be set by the global market. And that means every time there’s tensions that rise in the Middle East -- which is what’s happening right now -- so will the price of gas. The main reason the gas prices are high right now is because people are worried about what’s happening with Iran. It doesn’t have to do with domestic oil production. It has to do with the oil markets looking and saying, you know what, if something happens there could be trouble and so we’re going to price oil higher just in case.

Now, that’s not the future that we want. We don’t want to be vulnerable to something that’s happening on the other side of the world somehow affecting our economy, or hurting a lot of folks who have to drive to get to work. That’s not the future I want for America. That's not the future I want for our kids. I want us to control our own energy destiny. I want us to determine our own course.

So, yes, we’re going to keep on drilling. Yes, we’re going to keep on emphasizing production. Yes, we’re going to make sure that we can get oil to where it’s needed. But what we’re also going to be doing as part of an all-of-the-above strategy is looking at how we can continually improve the utilization of renewable energy sources, new clean energy sources, and how do we become more efficient in our use of energy.

That means producing more biofuels, which can be great for our farmers and great for rural economies. It means more fuel-efficient cars. It means more solar power. It means more wind power -- which, by the way, nearly tripled here in Oklahoma over the past three years in part because of some of our policies.

We want every source of American-made energy. I don’t want the energy jobs of tomorrow going to other countries. I want them here in the United States of America. And that’s what an all-of-the-above strategy is all about. That’s how we break our dependence on foreign oil.

Now, the good news is we’re already seeing progress. Yesterday, I went, in Nevada, to the largest solar plant of its kind anywhere in the country. Hundreds of workers built it. It’s powering thousands of homes, and they’re expanding to tens of thousands of homes more as they put more capacity online.

After 30 years of not doing anything, we finally increased fuel-efficiency standards on cars and trucks, and Americans are now designing and building cars that will go nearly twice as far on the same gallon of gas by the middle of the next decade. And that's going to save the average family $8,000 over the life of a car.

And it’s going to save a lot of companies a lot of money because they’re hurt by rising fuel costs, as well.

All of these steps have helped put America on the path to greater energy independence. Since I took office, our dependence on foreign oil has gone down every single year. Last year, we imported 1 million fewer barrels per day than the year before. Think about that.

America, at a time when we’re growing, is actually importing less oil from overseas because we’re using it smarter and more efficiently. America is now importing less than half the oil we use for the first time in more than a decade.

So the key is to keep it going, Oklahoma. We’ve got to make sure that we don't go backwards, that we keep going forwards. If we’re going to end our dependence on foreign oil, if we’re going to bring gas prices down once and for all, as opposed to just playing politics with it every single year, then what we’re going to have to do is to develop every single source of energy that we’ve got, every new technology that can help us become more efficient.

We’ve got to use our innovation. We’ve got to use our brain power. We've got to use our creativity. We've got to have a vision for the future, not just constantly looking backwards at the past. That's where we need to go. That's the future we can build.

And that's what America has always been about, is building the future. We've always been at the cutting-edge. We're always ahead of the curve. Whether it's Thomas Edison or the Wright Brothers or Steve Jobs, we're always thinking about what's the next thing. And that's how we have to think about energy. And if we do, not only are we going to see jobs and growth and success here in Cushing, Oklahoma, we're going to see it all across the country.

Obama’s pledge of pipeline progress is cheered by Keystone XL officials and supporters

Fri, 23 Mar 2012 19:53:00 GMT

In his only major speech while visiting Oklahoma, the nation’s chief executive (in a roughly 13-minute speech) on Thursday (March 22) covered the gamut of his “all-of-the-above” energy strategy. However, the greatest local and state interest was on his firm pledge to expedite completion of the Keystone XL pipeline from Cushing to the Gulf Coast.

After President Barack Obama’s address at a pipeyard near Cushing, Oklahoma, a smaller contingent of news organizations, including CapitolBeatOK, interviewed officials with Keystone XL. Company executives expressed optimism about the project, saying the White House has been cooperative in advancing the process.

Planning has been under way for some time, all except one permit is in hand, and construction will begin this summer, pipeline officials said. Organizers of the project emphasize the entire effort is privately financed. Keystone XL officials, carefully avoiding even indirect criticism of the Obama administration, said the process is advancing quickly and construction may be completed within a year.

In response to a question from CapitolBeatOK, Keystone XL officials said around 600 jobs will be created in Oklahoma directly from pipeline work. Another several hundred jobs in support functions will emerge, for a net of around 1,000 positions. Along the full extent of the route south to the Gulf of Mexico, the project should net several thousand jobs.

State officials attending the event at the pipeyard were generally supportive of the president’s remarks. One, state Rep. Joe Dorman of Rush Springs, has long backed the Keystone XL project.

Dorman told CapitolBeatOK he thought the president gave “a good speech, and his words will certainly be popular in this area. Hopefully, we’ll see work start sooner rather than later.” Dorman said he supports the northern end of the project, as well.

Among those attending Thursday were Jimmy Curry of the Oklahoma AFL-CIO, Oklahoma History Center director Bob Blackburn and his wife, former state Rep. Debbie Blackburn, progressive activist Susan Chambers, Oklahoma City School Board President Angela Monson, former state Sen. Bernest Cain, former Attorney General Drew Edmondson, former state Treasurer Scott Meacham, Tulsa civic activist Sally Frazier (and India, her granddaughter), state American Civil Liberties Union director Ryan Kiesel, former gubernatorial aide (and House District 88 candidate) Steve Cortes, and state Democratic Party chairman Wallace Collins.

In addition to Rep. Dorman, a variety of state legislators were present, including Democratic Senators Judy Eason-McIntyre of Tulsa, John Sparks of Norman, Tom Adelson of Tulsa, Al McAffrey of Oklahoma City, and Democratic state Reps. Mike Shelton of Oklahoma City, Anastasia Pittman of Oklahoma City, Jabar Shumate of Tulsa, Minority Leader Scott Inman of Del City, Emily Virgin of Norman, Danny Morgan of Prague.

The vast majority of attendees were Democrats, but a few Republicans attended, including state Rep. Lee Denney of Cushing, who greeted the president after the event as the local representative. Commerce Secretary Dave Lopez, a member of Governor Mary Fallin’s cabinet, was present to hear what state officials consider good news on the pipeline project.

A crowd of about 200 Oklahomans, mostly Democrats, attended President Barack Obama’s Cushing speech, giving him largely positive reviews for the content and message. Another 100 or so state and regional news organizations were in attendance, as well as more than a dozen national reporters.

National “pool” reporters were afforded preferential camera locations and proximity to the president, but there were no news media interviews during the president’s visit to the state.

After the speech, Obama lingered for another 15 minutes or so at the event site atop a hill on a cool, cloudy day, in the wake of two days of spring storms in the region. He shook hands with many in the crowd. As he wrapped up along the security line, Obama greeted a handful of reporters but did not answer questions.

However, when a reporter told him she had been born in Hawaii, “at the same hospital where you were,” Obama flashed a broad smile and laughed. He told the journalist, “I hope you’ve got your birth certificate!” The handful who heard the comment roared with laughter, as the president waved and walked briskly away, down the hill to a private meeting and then to his motorcade.

Oklahoma City prepares for presidential visit, Obama's critics and fans comment

Wed, 21 Mar 2012 16:39:00 GMT

Barack Obama is making his first visit to Oklahoma as president of the United States. Although no appearances open to the general public have been announced, both fans and critics of the first-term Democratic chief executive are organizing to advance their conflicting views.

This evening (Wednesday, March 21) in Oklahoma City, anti-war activists have planned a demonstration advocating "Clean Energy and Peace." They want the president to end the U.S. military engagement in Afghanistan and, a release sent to CapitolBeatOK said, not heed “the calls from the far Right to engage militarily in Iran over its alleged nuclear capability.”

Organizers, including Nathaniel Batchelder of The Peace House and Rena Guay of the Oklahoma Center for Conscience and Peace Research, “want the federal budget re-prioritized to focus on ending warmaking and instead serve human needs.”

Batchelder and Guay say they are working in a coalition called Americans Against the Next War.

The coalition plans to demonstrate on the northeast and southeast corners at the intersection of E.K. Gaylord Boulevard and Reno Avenue (at the dividing point between downtown and Bricktown) from 5-6 p.m.

In a press release, city officials have warned local residents to expect crowded conditions in the MidTown area this afternoon and well into tomorrow. In Cushing, site of tomorrow's formal speech, local residents are celebrating the visit, while fretting over the impact of all the anticipated traffic.

A leading local progressive voice and a former governor of the Sooner State, both Democrats, are applauding the anticipated visit.

Tom Guild, emeritus professor from the University of Central Oklahoma and a Democratic candidate in the Fifth Congressional District, told CapitolBeatOK he believes Obama has turned around an economy that was “on life support when he took office.

By providing desperately needed assistance to the states during the depths of the Great Recession, he helped Oklahoma escape draconian and disabling cuts in the state budget.”

Guild applauded what he called “bold steps” to save two top automakers from collapse. He reflected, “Although the road ahead is fraught with difficult challenges, America is on the mend and the future is brighter than it was three years ago when he took office.”

Guild also praised the president for ordering the mission that killed Osama Bin Laden.

Former Governor David Walters, calling himself “an enthusiastic supporter of President Obama,” told CapitolBeatOK he was “delighted that he has come to Oklahoma to speak clearly to his support of the energy industry despite the normal partisan misrepresentations of his energy policies.

“Although Oklahoma will sadly vote for the President's opponent no matter who it is, it is a testament to his leadership that he reaches out to those who are for and against him to help fashion a policy so critical to our state and nations future.

“His leadership has supported an increase in energy production during his time in office, has identified the enormous role that natural gas will play in our future and has provided policies to accelerate the U.S. achieving energy independence, with an all of the above approach, in a responsible and environmentally sound manner.

“I hope as a result of this visit that more Oklahoma's will begin to appreciate this President's steady, thoughtful and dedicated leadership to our nation and his support for our state, no matter our politics.”

After decades as a stronghold for the Democratic Party, Oklahoma – now dubbed the “reddest of the red states” – is regarded as a conservative bastion. Conservative activists working through Americans for Prosperity (Oklahoma) plan to hold a rally at

Cushing, site of major address the president is giving to tout his “all-of-the-above” energy strategy.
A facebook posting for what is deemed a “NOT In Our Back Yard Rally” said activists would gather tomorrow morning (Thursday, March 22) at 9:30 a.m.

Organizers said, “As we proud 'Okies' know, this happens to be the "pipeline crossroads of the world.” The Keystone Pipeline (Keystone XL) would've been a big deal for jobs and business in Oklahoma but it was stopped dead cold by POLITICS. The President promised to fight for the middle class, but he stood directly in the way of a project that would create thousands of American jobs.”

The group said it would meet at Cushing's Memorial Park (the corner of E. 5th and S. Little St.) to advocate for pro-energy policies, touting Oklahoma's oil and natural gas industries.

In a blog posting yesterday, Vice President Brian Bush of the Oklahoma Council of Public Affairs (OCPA) ruminated on Obama's visit and a popular song called “Flyover States” by Jason Aldean.

As Bush put it, “It tells the story of a conversation between two men on a cross-country flight when all they see out the window is farmland. Noting it all looks the same, the men cannot understand why anyone would want to live 'down there in the middle of nowhere.' The song’s chorus answers back, … suggesting that spending time in the heartland would help the men have a better understanding of Midwestern values – the very values that sustain this country.”

Bush said Obama's visit to Oklahoma --“arguably the capitol of the heartland” – might influence the president to change more of his views on energy development. Bush contended a blanket drilling moratorium after the Gulf oil disaster hurt the domestic economy. He chided the president's rejection of Keystone XL, and encouragement to Saudi Arabia to produce more oil
Bush asserted, “The problem is not whether Americans have heard Obama's energy message; Americans hear him loud and clear. They are simply rejecting the message.” He continued, “Pound for pound, no other state is leading in the energy sector like Oklahoma, and Washington could learn a lot from Oklahoma values. .. Oklahomans understand we must allow free-market principles to guide policy because when government chooses winners and losers, we all lose.”

He continued, “some of the world's best leaders, best producers, and best entrepreneurs call Oklahoma home, and this is your chance to seek their help to build an energy policy that makes sense for all Americans. America needs America's energy. America needs Oklahoma's leadership.”

Concluding his reflection, Bush quoted from the Aldean tune: “On the plains of Oklahoma, with a windshield sunset in your eyes, like a water-color painted sky, you'll think heaven's doors have opened, and you'll understand why God made those flyover states.”

Officially, the president's stops in central Oklahoma are limited to arrival and departure appearances at Tinker Air Force Base (immediately adjacent to the capital city) and the Cushing pipeyard speech to reporters and a selected crowd.

While the trip apparently includes no formal fundraising events or campaign appearances, the president must have been cheered by some recent news concerning the 2012 presidential race.

In the aftermath of the “Super Tuesday” primary, it appeared that ardent pro-life advocate Randall Terry and perennial candidate Jim Rogers had secured enough support in two congressional districts to gain delegates to the national convention.

However, state party officials announced last week that both men had missed a deadline for naming someone to qualify for a delegate slot. Therefore, all of Oklahoma’s delegates will go to President Obama, after all.

Fallin chides Obama, Pinnell and Lockhart see Keystone XL announcement differently

Wed, 21 Mar 2012 22:01:00 GMT

The White House today (Wednesday, March 21) released a “fact sheet” focused on the Obama administration’s declared “commitment to American made energy.”

A three-page document sent to reporters nationwide, including CapitolBeatOK, seemed focused on the first two stops (Nevada and New Mexico) of the president’s two-day trip.

This afternoon, the administration’s intentions to promote the southern leg of the Keystone XL pipeline (from Cushing, Oklahoma to the Gulf coast) drew restrained applause from Oklahoma Governor Mary Fallin, a pointed jab from the Oklahoma Republican chairman, and restrained applause from a rural Democrat in the Legislature.

Gov. Fallin, on a long-planned family vacation, is not in the state as President Barack Obama prepares to arrive tonight (Wednesday, May 21) for the third stop on his “all-of-the-above” energy policy tour of four states.

The Sooner State’s chief executive sent CapitolBeatOK and other news organizations a statement about the pending visit, saying she was glad he was coming to Oklahoma “to personally see the good work going on in Cushing. The TransCanada pipeline to be built there will connect Oklahoma to oil markets on the Gulf Coast, resulting in the creation of more than 1,000 Oklahoma jobs. This project will help to bolster our energy industry and security for years to come.

“I am glad the president supports the construction of the pipeline connecting Cushing to the Gulf. Impeding the progress of something which is so obviously beneficial to both the economy and the energy security of the United States would have been nothing short of irresponsible.

“Unfortunately, President Obama and his administration are practicing exactly this kind of obstructionism on the northern leg of the Keystone XL pipeline, which would have carried oil from the Canadian oil sands and several U.S. markets to Cushing.

As a result, the United States must go without the hundreds of thousands of jobs and hundreds of millions of dollars of investment that would have otherwise been available to stimulate our economy. Just as importantly, the administration’s decision undermines U.S. energy security and alienates our closest trading partner, Canada.

“I hope that while President Obama is in Oklahoma he takes some time to listen to our citizens, many of whom work for the energy industry which he claims to support. I think they will tell him that – far from supporting the responsible domestic production of American-made energy – his administration has undermined it at every turn. Rather than embracing the truly remarkable technological breakthroughs that have resulted in the discovery of an additional 100-year supply of natural gas, the president and the EPA continue their hostility to basic and time-tested practices like hydraulic fracturing.

“The president and his party in Washington continue to support an aggressively anti-energy agenda that will severely hamper the American economy and put the United States at a competitive disadvantage to the rest of the world.

“In Oklahoma, we recognize that the energy industry is an important ally in job creation and economic development. We believe that American energy is a resource, not a hazardous waste. My great hope is that some of that attitude will rub off on our president, who has lost his way on energy policy and so many other issues.”

Republican state party chairman Matt Pinnell also commented on Obama’s visit, saying it was “nothing more than a thinly-veiled attempt to cover up his massive failures on gas prices and energy security. Oklahomans are feeling the pain at the pump, and they are rightfully angry at the Obama administration. But what does the president offer? Nothing more than a speech filled with pathetic excuses.”

Assailing the “all of the above” policy the president is promoting, Pinnell said Obama “selfishly blocked the Keystone XL energy pipeline and the affordable energy and thousands of jobs that go with it just to please special interest groups. Now, he is trying to have it both ways by pretending he supports Keystone.”

State Rep. James Lockhart, a Heavener Democrat, applauded the White House moves to allow construction and operation of the Keystone pipeline south to the Gulf of Mexico. The administration had stopped work on a Canada to the Gulf pipeline to pass through, but announced support for the southern leg two weeks ago.

The construction from Cushing to the Gulf (at Nederland, Texas), he said, will create 20,000 direct jobs and 118,000 related jobs, 1,000 of them in Oklahoma.

In his comments sent to CapitolBeatOK, Lockhart said, “Oklahoma small business owners make compromises each day; they struggle with excessive fuel cost which drives up the overall cost for doing business. I support Oklahoma small business owners who make these compromises each day and I think Congress would bode well to do the same.

“I sent a letter to President Obama in support of the Keystone Pipeline. I believe the positive economic impact that this project will provide greatly outweighs the concerns of the State Department and I hope they will ultimately support construction of the entire project. This pipeline is a vital portion of our national security and our economic recovery.”

Editor’s Notebook: Smart Start, “Super” critiques, Jabar the bridge-builder, tutors and waivers

Tue, 20 Mar 2012 22:31:00 GMT

From an editor’s notebook, a cluster of education news items: a “Smart Start” grant program unveiled, Barresi and Garrett each get critiques, Shumate builds bridge to literacy, and a Tulsa tutor program falls victim to waiver

* * *

A press release this morning from the Department of Human Services, pegged as “Pursuant to Oklahoma Executive Order 98-37,” has announced a grant process for “Smart Start” (early childhood education) local project funding.

According to the release, “the Oklahoma Partnership for School Readiness/Smart Start Oklahoma through the Oklahoma Department of Human Services” will make available “Local Project Funding Number 13-001.”

The state Department of Central Services will issue as much as $1.2 million to “no more than 18 communities.” Up to $125,000 per community is available, and “Contracts will be effective July 1, 2012 through June 30, 2013 with an option to renew for two additional years.”

The grants are intended to support development of “community collaborations that engage parents, community leaders and other persons interested in early childhood to assure all children are safe, healthy and prepared for school.”

Strategies include in the implementation process include these:

1. Early Care and Education Program Collaboration

2. Family and Community Engagement

3. Integration of Health and Mental Health

4. Early Literacy; additionally, the following optional strategy may be addressed:

5. Coordinated Professional Development

Those eligible to apply include “any public or private entity, including an Indian tribe or tribal organizations (as defined at 25 U.S.C. 450b), and community-based organizations, including faith-based organizations,” so long as they meet these requirements:

1. Have at least two years of experience in providing community based planning or coordination of local community services.

2. An ability to financially support project-related activities for at least two months.

The DHS press release said, “Preference will be given to applicants who have a demonstrated history of supporting an early childhood coalition through their organization and/or have support from an established early childhood coalition in their community.”

Application materials will become available March 19, and are due by 5 p.m. on April 20. Contact for the process is: Stephanie Mendenhall, Fiscal Manager, Smart Start Oklahoma, 421 Northwest 13th Street, Suite 270 Oklahoma City, OK 73103, telephone 405-278-6978, email: Stephanie.Mendenhall@smartstartok.org; website: www.smartstartok.org

* * *

Megan Rolland of The Oklahoman today reported on a 2011 state Department of Education conference that paid for “using private donations and payments held in the bank account of a nonprofit foundation.”

Early this month, use of funds in a nonprofit foundation to pay for state education department conferences before 2011 were the subject of a critical special report by the office of Auditor and Inspector Gary Jones.

Damon Gardenhire, communications director for Superintendent of Public Instruction Janet Barresi, says there are distinctions between what Jones found concerning the practices under former Superintendent Sandy Garrett and the more recent patterns. He said the Barresi programs were accountable and properly structured.

Rolland also reported that bank balances (totaling about $780) in conference accounts held by the Oklahoma Curriculum Improvement Commission, the non-profit that financed conferences in the Garrett era, went into the Foundation for Innovation in Education, founded in May 2011. That group went out of operation after last year’s conference.

Early this month, Auditor Jones completed an audit of past practices which Barresi had requested. That investigation had originated in a review of travel claims by a former deputy superintendent.

As Jones said then, “Information came to light during that investigation that suggested a much bigger problem had existed at the State Department of Education.

“We brought the information to the attention of Superintendent Barresi and requested permission to continue to investigate the existence of a previously unknown bank account.”

In his report, he pointed to expenditures of over $2.3 million in three accounts.

Commenting at the time, Gardenhire said he was “troubled and concerned” about the past practices. On behalf of the agency leadership, he urged “the appropriate authorities to take action to address any possible wrongdoing from past years.”

In last week’s editions of Friday newspaper, an editorial chided critics of Garrett, objecting to “rough treatment” of the long-time superintendent in the auditor’s report.

* * *

In other education news, House Bill 2676 by Democratic state Rep. Jabar Shumate of Tulsa headed to the state Senate after a 93-0 vote last week.

The legislation authorizes community assistance to a “Bridge to Literacy” program designed to ensure children in the state can read at grade-level upon completion of third grade work. In comments sent to CapitolBeatOK, Shumate said, “enthusiasm for this bill has been contagious, and I believe the support of so many private citizens has helped build legislative support for this measure.”

Dr. Major Lewis Jemison, pastor of St. John Missionary Baptist Church in east Oklahoma City, said he believed long term impact of the bill “will be tremendous. House Bill 2676 provides another important way for community citizens to do their part to aid schools and parents.”

The bill creates a grant program through which the state Department of Education could fund reading instruction training, resource materials on reading instruction, remediation and other help to nonprofits, community-based programs, centers, organizations or service programs, and churches or religious groups.

* * *

A federal program through which tutoring services were offered to children in low-performing schools, authorized in the No Child Left Behind Act, is likely to end in Tulsa as state and local officials implement waivers recently authorized by the U.S. Department of Education.

Private tutors have earned up to $1,360 per child for 2,008 participants now in the program. The program had gained popularity with students and parents, but was viewed critically by local school officials who contend the program did not have adequate oversight and was too expensive.

Advocates of tutoring services contend they are an example of choice-like mechanisms, paid for by taxpayers but provided at no cost to parents whose children are in failing schools.

Oklahoma City Officials tell residents: prepare for possible traffic delays downtown during presidential visit – March 21-22

Wed, 21 Mar 2012 00:41:00 GMT

Downtown motorists could encounter some street closures and potential delays starting Wednesday afternoon, March 21 and continuing through Thursday, March 22 as a result of President Obama’s visit to Oklahoma City.

Thunder fans attending Wednesday night’s basketball game will likely experience some delays with street closures and limited access to some parking garages and walkways near the arena.

The Colcord Hotel, Century Parking Garage and Main Street parking garages will only be accessible by driving north on Robinson from Reno. City officials made the announcement early this afternoon (Tuesday, March 20).

A press release from the government concluded, “Commuters on Thursday morning are encouraged to leave early and allow plenty of time to reach their destination.”

Taxes and everything else: The hard work begins

Thu, 29 Mar 2012 21:20:00 GMT

How far tax reduction can actually go in the 2012 session of the Oklahoma Legislature remains an open question.

Strong majorities in the House of Representatives have set the state for income tax reduction, including potential phased-in elimination of the unpopular levy over a 10-year period. On the Senate side of the state Capitol, two “live rounds” have also cleared and will be in the House queue in coming weeks.

With a annual appropriated budget of more than $6.6 billion (and total spending of over $16 billion), $2 billion (more or less) of income reductions over a 10-year period might seem within reach.

However, roughly $6.1 billion of that annual total is consumed by the state government's “core services” – identified by the governor and legislative leaders as education, transportation, public safety and health/human services.

The analysis attempts to distill the mix of spending reductions/efficiencies, and reform of credits/exemptions that stand either in the way, or as a means to expedite, tax reduction of the visionary state income tax phase out.

Republican leaders have stressed their intention to afford comparative insulation of “core services” – but say that does not mean they are exempt from critical analysis and targeted re-allocations or even reductions.

In sum, a “core services” formulation leaves about $500 million that is spent in other areas of government.

However, as many have said, and Senate President Pro Temp Brian Bingman has explained, “The devil's in the details.” Every existing spending program, even the most modest, has a constituency. The larger programs have both defenders and lobbyists.

To reach the goal of tax reduction, which seems to have strong majorities in both chambers at this point, the hard part begins now (Monday, March 19).

Aside from tax cuts per se, questions with which the Legislature will grapple in the coming weeks include efficiencies and/or agency spending cuts; and the long-discussed possible reforms to the state's regime of tax credits, exemptions and business incentives that allow taxpayers to reduce what they owe to the state.

A core idea advanced by both Governor Mary Fallin and various legislative proposals is to make the state's income tax system simpler and fairer, ending (for example) all income taxation on the state's poorest workers.

Presently, even the lowest-income Oklahomans owe income taxes, unless they access exemptions such as the Earned Income Tax Credit to offset liability (in some cases, entirely). Fallin and other Republicans share the idea of ending low-income taxation, but spending reductions and/or “recapture” of resources will be required to start the income tax lowering process in all plausible scenarios.

In advocacy for House Bill 3038 by Rep. Leslie Osborn of Tuttle and 30 House allies, and in the governor's plan (House Bill 3061, sponsored by Speaker Kris Steele of Shawnee and Senate President Pro Temp Brian Bingman), the assumption is that income tax reductions will trigger new economic activity, itself subject to taxation, which will recover much of the “lost” revenue from lower taxation.

H.B. 3038 is mirrored, in large part, by S.B. 1571, by Senator Clark Jolley of Edmond, which is now pending before the House. Another proposal, S.B. 1623 by Mike Mazzei of Tulsa, would not phase out the income tax, but would enact a two-year reduction of one-half percent (from the current 5.25 to a 4.75 rate).

In broad terms, “dynamic” assumptions about the effects of tax cuts are shared by most economists, but the extent of anticipated growth and what that should mean for policymakers provoke sharply conflicting interpretations.

Opponents have stressed that even in the analysis and vision of Professor Arthur Laffer income taxes would be reduced by $2 billion after a decade, with some $1 billion of that returning to state coffers due to growth.

Osborn's phase out of taxes over 10 years comes closest to a “pure” plan for Laffer's fans. It has been revised explicitly to protect state retirees and members of the U.S. military. The governor's plan has many exceptions and would take 20 to 30 years to reach zero income taxation in Oklahoma.

Whatever else they disagree on, both proponents and opponents of the historic vision for an income tax phase out anticipate that spending reductions and new efficiencies, and/or increased taxes in other areas of government, would be required to advance the process. However, no tax increase proposal, as such, has advanced far at the Capitol this year.

(To be clear, this analysis sets aside, for now, the issue of sales tax or use tax collection on Internet sales.)

For the most part, this state of affairs leaves spending reductions, efficiencies and/or reforms in tax credits/exemptions as the likeliest means to drive forward a tax phase out or major reduction.

Identified areas of “waste, inefficiencies, non-core services”

Osborn and her allies have provided a long list of possible areas for reduction. They say as much as several hundred million dollars could be reduced without effecting core services.

In some cases -- such as appropriations through the Department of Agriculture to support the Tulsa State Fair ($65,000 a year), a steer roping championship ($25,000 a year) and a national finals rodeo ($25,000 a year) -- the totals might seem modest.

In other cases, however, the money adds up quickly. The long-discussed state employee health insurance reform (along lines that enjoyed a bi-partisan majority in 2010, but which Governor Brad Henry vetoed), the three-year total is a hefty $189 million. Likely more controversial but an example of real money is the proposal from Osborn and other conservative leaders to shift $9 million over three years from the state subsidy for CareerTech centers with strong local revenues.

In Higher Education, targeted reductions proposed by the allied Republicans backing Osborn's bill include elimination of the Peer Factor Multiplier, ending administration and instructional duplication, and shifting faculty workloads, for a total of $216 million in each of three fiscal years (2013, 2014 and 2015, for $648 million.

Speaker-designate T.W. Shannon has advocated selling unused government assets; the plan drawn from Oklahoma Council of Public Affairs' fiscal policy analyst Jonathan Small gives some details.

The OCPA numbers-cruncher advocates several asset sales, including mutualization or privatization of CompSource, the public-private hybrid that competes in the workers compensation insurance market, and outright sale of the Grand River Dam Authority.

The CompSource shift is listed as worth $50 million over two years, although that figure might be low.

The Grand River Dam Authority's potential sale price is booked at $300 million (in Fiscal Year 2014).

Tax Credits, Exemptions and Lobbyists: Oh My!

The House late last week advanced both constitutional and statutory measures designed to put into place new standards or guidelines for future provision of tax credits, business incentives and other carve outs, also known to some analysts as “tax expenditures.”

House Joint Resolution 1089 would allow voters to decide in November whether to put into the state constitution explicit criteria for future provision of tax credits and exemptions. Drawn from the work of the Task Force on State Tax Credits led by state Rep. David Dank of Oklahoma City, H.J.R. 1089 is sponsored by Speaker Steele.

Missing from the list of criteria is a proposal to end transferable tax credits, that is, provisions in law that allow recipients of certain credits to either use those at full value or sell them (often at discounted rates) to lower tax liability.

A powerful coalition of lobbyists and current recipients made transferability the first clear victim of organized “push back” against the income tax reduction/phase out proposals.

However, transferability has survived thanks to a measure by Republican state Rep. Dennis Johnson of Duncan. While still clearly “at risk,” the idea remains viable for this year, the Speaker insisted in floor discussions and his weekly meeting with Capitol reporters.

In debate on H.J.R. 1089, Dank observed that transferability was the issue that, in the end, most deeply divided the task force. Republican state Rep. Mike Reynolds of Oklahoma City, who attended most of the task force meetings (although not a member) said he had concluded that “disdain for transferable tax credits” was the most consistent message of the group's deliberations.

Steele said he shared the objective to end transferability, but that both task force members and a legislative majority had concluded ending the provision “shouldn’t be part of this criteria.”

Rep. Johnson pointed out, before the debate on his own measure, that “people on both sides of the transferability issue support some sort of reform.”

In dialogue with Rep. Cory Williams of Stillwater, a Democrat, Steele concurred that the gist statement (the “simple language that distills an amendment's meaning for voters) should be revised. As a result, the House amended H.J.R. 1089 in the latter states of debate. After debate, with Reynolds in opposition, Williams moved to suspend House rules to allow consideration of his “untimely amendment” to the gist statement.

The amendment prevailed 46-5, with a total of 48 Representatives either absent or, as deliberate absence is deemed, “walking the vote.” Voting no were Reps. Reynolds, David Derby of Owasso, Mike Ritze of Broken Arrow and Paul Wesselhoft of Oklahoma City, all Republicans, and Democratic Rep. Brian Renegar of McAlester.

Rep. Williams' proposal to allow suspension of the rules prevailed 68-11, with 20 members excused. Then, on third reading, the constitutional proposal advanced to the Senate on a vote of 77-10, with 12 members excused.

Legislators then passed a statutory version of the tax credit criteria, House Bill 2978 sponsored by Rep. Dank. Dank carried through on Dank's vision to ban passage of tax credits late in legislative sessions, and to make future credits subject to rolling sunset provisions and audits by the state Auditor and Inspector (now Gary Jones, a Republican).

Rep. Williams questioned the enhanced powers for the auditor's office. Further, Williams and others observed that some companies do not want their books reviewed by government officials, but Dank repeated his long-held contention that “if it's taxpayers' money, then taxpayers should have some idea of what it’s being spent on.”

Dank stressed, in dialogue with state Rep. Joe Dorman,a Rush Springs Democrat, that the statutory no measure had no direct effect on the existing firefighter tax credit, but was limited to “economic development” incentives.

In an exchange with Democratic Rep. Chuck Hoskin of Vinita, Dank said cost for additional audits had not yet been budgeted.

Only Reps. Reynolds and Ritze opposed Dank's statutory measure, as it passed 90-2.

President Obama to visit Oklahoma

Sat, 17 Mar 2012 01:09:00 GMT

President Barack Obama will visit the state of Oklahoma next week, CapitolBeatOK has learned.

White House officials confirmed the nation's chief executive will travel on an official trip next week to unveil plans for an "all of the above" approach to Energy strategy.

The president will visit Nevada, New Mexico, Oklahoma and Ohio on the trip. He will stay in Oklahoma City on Wednesday, March 21.

Details of the trip will be disclosed later today, The White House press office told CapitolBeatOK (Friday, March 16).

CapitolBeatOK will provide details as the story develops.

Senator Jim Inhofe signs copies of “Greatest Hoax” book in Oklahoma City

Fri, 16 Mar 2012 21:30:00 GMT

U.S. Sen. Jim Inhofe of Tulsa is back in Oklahoma this weekend. Among other events, he was scheduled for a 4 p.m. book signing today (Friday, March 16) at Full Circle bookstore, 1900 Northwest Expressway in Oklahoma City.

Inhofe’s new book is “The Greatest Hoax: How the Global Warming Conspiracy Threatens Your Future,” (New York: WND Books, 305 pages with index, $25.95).

The book is a blistering attack on global warming orthodoxy.

Although by no means limited to the events of winter 2009-10, much of Inhofe’s narrative focuses on the shocking scandal that surrounded “Climategate.”

That was the term news reporters and others quickly assigned after the disclosure of thousands of emails centered around work done at or through England’s University East Anglia and the Climactic Research Unit. When the text of the emails circulated worldwide, analysis shattered widespread acceptance of the conclusions of the United Nations Intergovernmental Panel on Climate Change (IPCC).

Readers can decide for themselves: 50 pages of Inhofe’s new book is devoted to reprinting emails in which leading scientists traded ideas on how to discredit other scientists who had questioned some or all of the evidence of a global warming trend attributable to human activity.

A Republican, Inhofe began his political career in the Oklahoma state Legislature, where he and a young Democrat named David Boren sat across the aisle from one another as “back-benchers” in the House of Representatives. When scandal racked the administration of Governor David Hall in the early 1970s, Inhofe and Boren ran for the chief executive’s office as reformers in their respective parties.

In historic upsets, each man was nominated for the state’s top job. In an era when Democrats still dominated state politics, Boren won easily, with analysts speculating that Inhofe would have done well against any other Democrat. After one term as governor, Boren went onto a long tenure in the U.S. Senate, then to the presidency of the University of Oklahoma.

Inhofe lost that 1974 governor’s race, but was not finished with public life. He went on to serve as mayor of Tulsa and a member of the U.S. House. In 1994, when Boren resigned from the Senate, Inhofe easily won the Republican nomination for the Senate seat, going on to defeat U.S. Rep. Dave McCurdy of Norman.

Inhofe has served in the Senate ever since, becoming a dominant figure in the Sooner State’s modern Republican party.

His new book has been assailed by some critics, has garnered effusive praise from former astronauts Tom Stafford and Harrison H. Schmitt, meterologist Richard Lindzen, Heartland Institute President Joseph Bast, President Vaclav Klaus of the Czech Republic, Professor Robert Carter of the Marine Geophysical Laboratory at James Cook University and many others.

In a 2006 essay, the late Paul M. Weyrich, an architect of the modern conservative movement, described Inhofe as “a workhorse senator,” crediting him for both his ardent conservative policy views and his methodical work on flood control, transportation and other non-glamorous issues.

Parade honors Saint Patrick in Bricktown and downtown Oklahoma City

Fri, 16 Mar 2012 22:01:00 GMT

The annual Oklahoma City St. Patrick's Day parade, led this year by Grand Marshal Patrick Rooney, will be this Saturday (March 17) in downtown Oklahoma City.

Always organized on the Saturday closest to the feast day of the man known to history as “the Enlightener of Ireland,” the local parade falls on the actual day of the celebration this year. That means Bricktown and the downtown area will be more festive than ever. Marchers will enter the old warehouse area just as an annual party hits its peak.

While the parade begins officially at 1 p.m., organizers encourage participants to start lining up in the morning, certainly before Noon. Spectators are encouraged to find a favorite spot for viewing the parade by noon, or 12:30 p.m. at the latest.

Staging area is on Broadway Avenue north of 5th street up to 8th, and west to Robinson Avenue. From the 5th Avenue commencement, marchers will head south on Broadway, turning into Bricktown on Sheridan.

The parade is always held, regardless of weather conditions.

U.S. Military veterans from all branches of the service will be scattered throughout the parade this year.

Tribal color guards, Irish dancers, Boy Scouts and Girl Scouts, high school Junior ROTC units, beauty queens, assorted equestrian units, car clubs, civic group floats and law enforcement units are included in what has become one of the largest regional St. Patrick's Day parades in the United States.

The Knights of Columbus have been a participating unit in every parade since the first official one held in the city three decades ago. Members of Oklahoma Council 1038 join each year with Knights in full regalia from the Chief Justice Matthew John Kane Assembly to march down Broadway. Many other councils and assemblies usually join in the march.

Among the most popular entries each year are bagpipers from throughout the state, gathered into the Massed Pipes and Drums of Oklahoma. When that unit reaches the west end of Bricktown each year and begins to play “Scotland the Brave,” the crowd erupts into cheers and applause.

Local celebration of St. Patrick actually began last weekend, with the “Green Tie Gala” sponsored by Catholic Charities. The event, held at the National Cowboy Museum, benefited the Sanctuary Women's Development Center in south Oklahoma City.

Rooney, chosen by parade organizers as the Grand Marshal, continues the tradition of honoring individuals of Irish descent who have contributed significantly to the quality of life in Oklahoma City.

Rooney, feted at the gala, is chairman and controlling shareholder of First National Bank of Oklahoma. He serves on the boards of United Way, Last Frontier Boy Scouts of America, and the Medical Research Foundation. He is also a past chairman of The Education and Employment Ministry (TEEM), and a MAPS for Kids trustee.

The parade weekend falls during the run of the Majestic Roofing Baseball Program (March 9 – March 31). Teams scheduled to play on Saint Patrick's Day at Bricktown Ballpark include Stroud vs. Davenport (11 a.m.), Beggs vs. Tulsa (2 p.m.), and Moss vs. Union City (5 p.m).

For 21 years in a row, a “St. Patty’s Day” Block Party has been held in the historic Bricktown business district. Festivities unfold starting at noon, on the Corner of Sheridan and Oklahoma Avenue. About 2 p.m, live music will begin on an outdoor stage. Businesses involved in the party said visitors will find green beer, soft drinks and more available. Festivities will last until 10 p.m. or later.

About Saint Patrick, and the city parade

March 17, considered a feast day in many Christian churches, honors the date that St. Patrick, a Fifth Century priest and bishop who converted the people of the Emerald Isle from Druidism and related pagan faiths to Christianity, passed from this world into the next.

Many aspects of his earthly life are uncertain, including the precise years he lived. Most historians accept evidence he was enslaved in Ireland as a boy, escaping as a young man to mainland Europe. As a young priest, according to the “Confessio” attributed to him, Patrick received a communication (in some traditional narratives described as a vision) from the Celtic people begging him to return to the island.

He did so and became the principal (not all scholars agree he was the first) force for the transformation of Ireland into a Christian stronghold.

That short book known as the “Confessio,” and a fervent Christ-centered prayer also attributed to him, have inspired believers for centuries.

Also known as Patricius (Latin) and Padraig (Celtic), Patrick became, in time, a symbol of the Irish people worldwide.

Like Saint Augustine of Hippo, his status as an early Christian leader led to his acceptance as a saint by many arms of the Christian tradition. Patrick is regarded as a saint in the traditions of the Roman, Orthodox and Episcopal (Anglican) Churches. The “Christ-centeredness” of his writings draw to him many Christians outside of the Roman tradition, including these words from the “Breastplate” of Patrick:

“Christ be with me, Christ within me, Christ behind me, Christ before me, Christ beside me, Christ to win me, Christ to comfort and restore me.”

The Irish writer William Butler Yeats, said of Saint Patrick: “Being Irish, he had an abiding sense of tragedy, which sustained him through temporary periods of joy.”

Among the stories told about Patrick of Ireland is a narrative focused on his youthful years as a slave on the Emerald Isle. He watched the sheep of his masters in cold and rain, snow and sunshine. He tended them as if they were his own, even as he longed for freedom.

Years later, when Patrick felt that mysterious call to return and serve the people who had enslaved me, the story goes that he dreamed they were like sheep without a shepherd, and so he returned.

One year, not long ago, the mettle of Oklahoma City’s parade organizers was tested as a bitter storm struck the city, bringing with it stinging sleet and an icy cover over the downtown streets.

Those who managed to make it consulted with parade marshals and organizers, and it was agreed to step off despite the inclement conditions.

And so was held the shortest (45 minutes or so) local St. Patrick’s parade in modern history.

Among the marchers was a solitary Knight who traversed the route in the cold sleet and snow. As the years pass, friends remembering that day describe the route as “up hill in the snow, both ways.” And, being Irish, of course the snow gets deeper with each telling.

The appeal of St. Patrick is rooted in his example of service, and in the love of humanity he manifested. That love still, at least on their best days, characterizes the Irish, and other peoples.

In Oklahoma City and Dublin, in New York and Boston, in villages and towns around a troubled world of abiding tragedy, the day he died is honored, to be sure.

Yet, the way he lived is best remembered. That memory sustains his admirers in periods of joy, and through sorrow.

Note: McGuigan is past grand marshal of the Oklahoma City St. Patrick’s Day parade. Parade photos accompanying this story were taken by Chris Cook.

President Obama to detail “all of the above” strategy in visit to city, Cushing

Sat, 17 Mar 2012 15:43:00 GMT

OKLAHOMA CITY, Friday, March 16 -- The White House Press Office, in a release sent to CapitolBeatOK and other news organizations, has provided details of President Barack Obama’s March 21-22 trip to four states, including Oklahoma. While in Oklahoma, he will visit the Cushing area, a major hub for the oil industry.

Earlier today, in response to questions from CapitolBeatOK, the White House press office confirmed Obama’s intention to visit Oklahoma next week.

U.S. Sen. Jim Inhofe of Tulsa, the state’s ranking U.S. Senator and a leading Republican critic of the president, said he hoped the visit provides a chance for President Obama to “learn a thing or two about the benefits of using our own domestic oil and gas resources, especially as gas prices continue to skyrocket.”

Obama will visit Nevada, New Mexico, Oklahoma and Ohio, his press office disclosed, “to highlight his Administration’s all of the above energy strategy, including his focus on continuing to expand responsible oil and gas development, increasing the fuel economy of the vehicles we drive which will save families money at the pump, supporting renewable energy sources, and investing in infrastructure and research and development, all of which play a central role in increasing our nation’s energy security.”

The president’s trip first stop is in Boulder City, Nevada, where his staff says “he will visit the Copper Mountain Solar 1 Facility, the largest photovoltaic plant operating in the country with nearly one million solar panels powering 17,000 homes.

“In Boulder City, he will highlight his Administration’s focus on diversifying our energy portfolio, including expanding renewable energy from sources like wind and solar, which thanks in part to investments made by this Administration is set to double in the President’s first term.”

The first term Democrat, who is seeking a second term in this year’s election, then travels to New Mexico and the Carlsbad “oil and gas production fields located on federal lands.” Carlsbad is home to around 70 active rigs.

The White House release continued, “While in Carlsbad, the President will highlight the Administration’s commitment to expanding domestic oil and gas production, which has increased each year he has been in office, with domestic oil production currently at an eight year high and domestic natural gas production at an all-time high.”

Obama’s office described his trip to Cushing as an opportunity “to discuss his Administration’s commitment to improving and supporting the infrastructure that helps us leverage our domestic resources, while also ensuring these projects are developed in a safe and responsible way. This includes a pipeline that will transport oil from Cushing to the Gulf of Mexico, which will help address the bottleneck of oil that has resulted in large part from increased domestic oil production in the Midwest.

“In Oklahoma, the President will deliver remarks at a storage yard holding pipes that will be used for the construction of the pipeline.”

After spending the night in Oklahoma City and making the stop in Cushing, President Obama will travel to Columbus, Ohio, and the Ohio State University, “home to some of the country’s most advanced energy-related research and development.”

Inhofe was in Oklahoma City today to meet constituents and sign copies of his new book on global warming, called “The Greatest Hoax.”

In a statement sent to CapitolBeatOK after a discussion at his book signing event, Inhofe said, “We know his visit is little more than a campaign stop in an attempt to put a favorable spin on his dismal energy record, because current gas prices threaten his job. America has more domestic recoverable resources of oil, gas and coal than any country in the world, and developing these resources is the best way to revive our economy while bringing down prices at the pump.

“Yet, President Obama continues to wage an all-out attack on American fossil fuel development in his war on affordable energy. He keeps saying that oil and natural gas are the fuels of the past, but he is wrong. Oklahomans know they are very much the fuels of the present and the foreseeable future. The sooner he realizes this, the better."

Inhofe often clashes philosophically with U.S. Senator Barbara Boxer, a California Democrat, chairman of the Senate Environment and Public Works Committee. However, the two have cordial relations. Just days ago he told MSNBC’s Rachel Maddow that she, Boxer and EPA administrator Lisa Jackson were “my three favorite liberals.” Maddow had Inhofe as a guest on her evening program this week.

Inhofe has encouraged Boxer to hold a hearing in Cushing on the proposed pipeline running from Oklahoma to the Gulf of Mexico.

Earlier this year, President Obama stopped a plan to build a pipeline from Canada through Cushing and to the Gulf, provoking massive criticism from key players in the energy industry, and from some construction unions.

However, the administration subsequently approved plans by TransCanada, announced February 27, to build the southern portion of the pipeline. The president has said pipeline supporters can apply for the northern portion of the pipeline in a new application.

Lt. Governor Lamb and Google Announce Oklahoma Launch of Online Tools for Returning Soldiers

Fri, 16 Mar 2012 01:49:00 GMT

Oklahoma Lt. Governor Todd Lamb is joining with Google to announce the Oklahoma launch of Google for Veterans and Families, which is an online toolbox for veterans and returning soldiers. The announcement coincides with the return of Oklahoma's 45th Infantry from Afghanistan.

Googleforveterans.com is a website that was designed by the Google Veteran Network, the company’s employee community of veterans, reservists, guardsman, family members and supporters, who have first-hand experience with the challenge of serving, coming home and transitioning into civilian life. The site includes tools such as Google’s Resume Builder, a 3D Tour Builder, video transition tips and Vet Connect for Google +.

Google has established a veterans channel at www.youtube.com/veterans where individuals can share their thanks by video with veterans who have served — or are serving — our country both here at home and overseas.

The videos are organized by state, which lets thankful Oklahomans communicate directly with Oklahoma vets, active-duty service men and women, and the soldiers of the 45th Infantry.

“I am proud to work with Google on this meaningful and thoughtful initiative to honor our service men and women, many of whom are far away from home,” Lamb said. “In Oklahoma, we hold the highest respect and appreciation for our soldiers and officers who serve in the military. Our fellow Oklahomans who have volunteered to serve our country deserve our thanks for protecting our country.”

Google opened a data center in Pryor, Oklahoma this past summer where several veterans are employed.

"Google is part of the community here and we want to thank the men and women of the 45th, and their families, for their sacrifices over the past year," commented Mike Wooten, operations manager at the facility.

"We’re glad we can leverage our technology to help members of the Oklahoma National Guard, and we hope all of the returning soldiers take advantage of the tools available through Google for Veterans and Families."

Speaker Steele said taxes will be cut (this year), more legislative transparency will come (some day) and lobbyists are powerful (every year)

Sat, 17 Mar 2012 19:31:00 GMT

During a recess for lunch, as the Oklahoma House of Representatives prepared to work late on Thursday (March 15), Speaker Kris Steele said he felt members were quickly processing all aspects of the Republican agenda, including tax reforms, waste-fighting, government modernization, pension reforms, and pro-life issues. He again expressed support for the Open Carry measure many members want to enact.

Turning to several broad issues of public policy, the Shawnee Republican added, “I appreciate the bi-partisan cooperation we’ve experienced. We are working together, and I appreciate that.”

In the wide-ranging discussion with reporters, Steele touched on most of the major issues still awaiting resolution in the 2012 session.

One journalist suggested this year’s session has been less acrimonious than the 2011 one. Steele commented that both former Floor Leader Dan Sullivan of Tulsa and current leader Dale DeWitt of Braman had performed well. He reflected, “Each session has its own personality. This is my twelfth session.” Steele is term-limited, and this is his last year in the House.

Concerning the dynamic this session, he speculated, “Election years might be different?” He continued, “We’ve done a lot of work. We worked hard over the Interim, perhaps we were better prepared this year.”

Discussing the top issue at the Capitol this year, a wave of income tax reduction proposals, and measures entirely to phase out the unpopular levy, he said a working group he named last week will represent House Republicans in upcoming work on the range of tax and tax-related issues.

Members of that working group include Reps. Earl Sears of Bartlesville, David Dank of Oklahoma City, Leslie Osborn of Tuttle, David Brumbaugh of Broken Arrow, Marty Quinn of Claremore, Lee Denney of Cushing, Randy McDaniel of Oklahoma City, Scott Martin of Norman, Fred Jordan of Jenks, Harold Wright of Weatherford, and Todd Thomsen of Ada.

Concerning their work, Steele reflected, “We are looking for the best ideas on behalf of the Republican caucus and will then we will move forward. I think we will begin working closely with the Senate and the governor’s office in the next 2-3 weeks.”

One reporter suggested a 3 percent first-year cut in the property tax rate, from 5.25 percent to 2.25 percent, now seems “pie-in-the-sky.” Steele responded, “I don’t know what the percentage will be. I can tell you there will be a significant income tax reduction this year.”

Steele referenced House Appropriations and Budget Chairman Earl Sears’ repeated comments to the same effect, saying he agreed.

Yet another journalist wondered why the state would consider any tax cuts, in light of challenges facing the Department of Human Services (an area of importance to Steele), the state’s ranking in teacher pay, and flat pay for employees of the government.

Steele commented, “We’ve begun preliminary discussions on the budget. Outside the core areas of education, transportation, HHS and public safety we’re looking at all of it.” He estimated such “core spending” amounts to 83 percent of the appropriated total.

CapitolBeatOK asked if, as found in Gov. Mary Fallin’s tax reform plan, a five percent threshold for economic growth before future income tax cuts are “triggered” was too high. Steele said, “I can’t say I yet know an answer to that. We took the governor’s plan and simply introduced it. That is the reason for the working group to get more information and help us with the issues.”

Steele reiterated his support of efforts led by David Dank to end transferability of certain tax credits, some of them controversial. Sears commented recently that the House “has a long way to go” on the issue.

Steele agrees with Dank, but observed, “There are a lot of members who think there’s a lot of viability and importance in transferability. For myself, I don’t think transferability repeal is completely off the table. I think there is support for additional accountability measures.”

He noted that other “criteria” for tax credits, reflected in a report from Dank’s task force and in legislation advanced by Rep. Dennis Johnson of Duncan, are still viable in the 2012 legislative process. Steele said, more than once, “I personally believe in the transferability reforms.”

Steele was pressed on a perception that as lobbyists’ succeed in peeling off some proposed reforms, “the ones who lose” are the poor, with child care tax credits and the Earned Income Tax Credit suggested for elimination.

Steele commented, “There’s no question the lobbying community is alive and well at the state Capitol. Their effectiveness is, however, contingent on the individual member. There are good lobbyists and effective lobbyists. I’m not sure I agree with your premise about the poor. Under the governor’s plan, those under $30,000 will have zero personal income tax. The goal is NOT to hurt the less fortunate.”

Some critics of Republican tax reduction reforms have pointed to suggestions from state Rep. Leslie Osborn and others of perhaps $100 million in education spending cuts, most of that in Higher Education.

Steele replied, “I can’t speak for any other member, but even within the core services there is certainly room for efficiencies.”

Steele suggested the House would not hear a proposed constitutional amendment to give Auditor and Inspector Gary Jones additional authority to engage in performance audits. He countered a reporter’s suggestion some legislators thought the proposal would give too much power to the auditor.

Steele said, “That wasn’t the concern I heard from members. They were worried about taking money away from elsewhere in the general revenue.” Asked about the issue again later in his weekly session with the Capitol press corps, Steele commented, “The concept intrigues me. I am open. There needs to be a level of accountability to make it work.”

CapitolBeatOK pressed on income tax reduction or phase out questions, asking if the work of lobbyists amounts to “the death of a thousand cuts,” or “that which doesn’t kill me makes me stronger.” Steele, enjoying the analogy, replied, “I still believe there will be a tax cut.”

CapitolBeatOK also asked if tax reductions and/or reforms in credits/exemptions would be considered separately from other issues, or “stitched together” in the process. He responded, “My guess is that will all be stitched together.”

In an arena of admitted disappointment to members of the Capitol press corps, it appears that open records and open meetings provisions will not be applied to the House, despite legislation advanced by state Rep. Jason Murphey of Guthrie, with Steele’s support.

Steele commented, “Rep. Murphey has done due diligence on this. I’m not sure what the entire explanation is. I know there were 20 amendments filed. My support and commitment was firm; I cast a committee vote for it myself. Today, it is doubtful it will be heard.”

Concerning Rep. Murphey’s labor, Steele said, “I cannot overly underscore his work on this, in terms of the objective. … Some how, some way this will happen, but it might not be this year.”

Steele said, as he has often, he agrees with Murphey, that the Legislature should be subject to the same kinds of provisions that city and other Oklahoma governments face.

He continued, “I get it.” Pointing to a wide range of transparency provisions he and other Republicans have advanced, he continued, “The Legislature, this House, works within the spirit of open record and open meetings laws.”

As for the hesitations of his colleagues, Steele said, “the body feels some aspects that are concerns.” These are focused primarily on four issues, Steele said:

· constituent communications

· work product

· flushing out ideas

· caucus meetings/political processes

He concluded, “Members of the body want some questions answered.” In all, he noted, “Forty-four other states operate under these rules in one form another. We’ve taken steps in the right direction. We’ve advanced the issue further along than it ever has been, and it might yet be reconsidered.”

Steele did not quarrel with the decision of Senate leaders to pull a proposal creating an Oklahoma-based insurance exchange to comply with federal health care mandates. He expressed confidence, however, the state can respond if the controversial federal law is upheld at the U.S. Supreme Court: “Based on the work of the interim and the committee, if there comes a time when the state needs to create an exchange, we’re ready to go.”

Asked about a possible special session to address the exchange issue, he said that “is rare and unlikely.” Stressing he was “not calling for that,” it is nonetheless “possible.”

Tulsa’s Sue Tibbs: tough lady, criminal justice reformer, loyal friend

Fri, 16 Mar 2012 02:47:00 GMT

After 12 years at the state Capitol in Oklahoma City, serving Tulsa’s District 23, Sue Tibbs is optimistic about the state’s future because “I believe in the people of Oklahoma. I believe we’re a strong people, with good ideas and good judgment.”

Chairwoman of Public Safety and a key player on the Appropriations & Budget Human Services subcommittee, as well as General Government and Judiciary, she has been a trailblazer for other Republican women, and women in general.

A friend and fellow legislator, Pam Peterson, was her roommate during legislative sessions for seven years. Peterson reflects, “She is an amazingly loyal person. When she’s with you, she’s with you.

“When she speaks on the floor, everybody listens. She is greatly respected. She’s not flashy. She speaks very intentionally. She has power and influence because of who she is.

“The tenacity of the woman is just incredible. She’s not the youngest member but she could run circles around many of the others, including younger members.”

Peterson insists Tibbs is “as tough as any male,” yet gentle as a dove in matters of faith. A committed Christian and a member of Tulsa’s Grace Church, she hosts a Tuesday noon hour devotional at the Capitol, an event she inherited from former Rep. Joan Greenwood.

In her first race, back in 2000, Tibbs defeated a popular Democratic incumbent, Betty Boyd. Eventually, the Republican made the district her own, winning reelection easily in both 2008 and 2010.

In an interview with CapitolBeatOK, Tibbs was asked to list her most significant achievements in public life. She replied, “My most significant achievement, I believe, is being able to serve my constituents on a daily basis.”

Another success is a long marriage to Milton Homer Tibbs. They have two children: Debra West and Elli Dodd.

She continued with reflections on priority issues, saying she is intensely focused on “the prison reform area. Being able to recognize that some people have made mistakes and wish to have a second chance, giving them that opportunity and truly seeing these programs work, changing lives for whole generations.”

Concerned with the Sooner State’s high rates of female incarceration, Tibbs early on became an advocate of criminal justice reform. She was one of the first elected officials to study Tulsa’s acclaimed Women in Recovery (WIR) program, an effective example of the potential for what is now known as “justice reinvestment.”

Last August, Tibbs was a featured speaker at the summer graduation for WIR, congratulating women who had turned their lives around after struggles with addiction, crime and dysfunction. She’s a heroine to the staff and supporters of WIR.

Tibbs introduced a young Methodist minister from Shawnee, a fellow legislator named Kris Steele, to the Tulsa program. After he became speaker, Steele championed the drive to make Oklahoma’s policies “right on crime” – wise, judicious, compassionate, cost effective and reform-oriented.

Her work on voter ID issues made her a hero to fellow conservatives. She comments, “I started working on voter ID my first year at the Capitol, and was thrilled to present my driver’s license to be able to vote in the presidential primary on Saturday, March 3.” Oklahoma Eagle Forum named her a legislator of the year for her work in that arena.

A graduate of Tulsa Central who also attended Tulsa Junior College, Tibbs is part of the last group of Republicans to have served in the minority at the state House.

One friend is a leading Democrat, Senator Jerry Ellis of Valliant. He told CapitolBeatOK, “She was so easy to work with in the House, and we did so for six years. I was in the majority there for two years, and then in the minority for four years, before I came to the Senate.

“She is one of those people for whom party affiliation did not enter into it. It was always just the issue with Sue Tibbs.”

Ellis, remembering his House years with Tibbs, concluded, “I still have, as a keepsake, a note she wrote me. She thanked me for working with her on one of those early issues when we were in the House. She is a dedicated public servant, a wonderful person.”

Tibbs says important work remains undone in Oklahoma City. She reasons, “I believe one of the most important issues facing Oklahoma is becoming and remaining a business-friendly state. We are finally moving in that direction. We finally have a governor who is willing to step up to the plate and make those hard decisions, then stick with them to cause this to come about.

“I do believe we can successfully eliminate the taxes necessary to accomplish this over a 10-year period. I hope the Legislature will also remain positive in this area, and move ahead with this plan.

“Oklahoma has the opportunity to grow our tax base by attracting companies to our Great State. Our work force is second to none. Now is our opportunity to provide them with good paying jobs.

“Another very important issue is consolidating some agencies – making sure duplication of services [is] stopped, which of course will save the taxpayers’ dollars and, in the long run, provide more service to more people.”

Her greatest concern remains, “Our prison system. I truly believe Oklahoma needs to rewrite our criminal code. Kansas compares in population with Oklahoma and, a few years ago, decided they needed to rewrite their code.

“Their prison population dropped, saving Kansas taxpayers an incredible amount of money. This money was then able to spent on other services, or returned to the taxpayers.

“Oklahoma spends about $500 million a year on Corrections funding, believing we were getting smarter on crime, when in fact we weren’t. We live in the Bible Belt where we believe in forgiveness and second chances. We must continue to work toward that end, not re-election.”

Peterson’s face lights up when a reporter asks her about Tibbs. She says, “She is the strongest woman I’ve ever met. Her spirit and determination, her strong will have impressed me.”

On a busy day at the state Capitol, when asked about Sue Tibbs, Speaker Steele told CapitolBeatOK she "is the epitome of dedication, courage and determination. She is a true public servant who understands the issues facing our state and cares deeply about the needs of her constituents. It is an honor to serve alongside her in the state Legislature."

State should find equitable solutions to water disputes

Fri, 16 Mar 2012 03:17:00 GMT

To The Editor:

Water in southeastern Oklahoma, particularly in Sardis Lake, has ignited a firestorm of controversy which could impact the policies regarding our most precious natural resource for generations to come.

The Choctaw and Chickasaw Nations filed a lawsuit in federal court to enjoin the Oklahoma Water Resources Board from issuing a permit to the Oklahoma City Water Utilities Trust to pump water out of Sardis Lake and transport it to Oklahoma City. The tribes also claim water rights in Lake Atoka, Kiamichi Basin, Clear Boggy Basin, and other areas.

Pete White, Oklahoma City council member and Chair of the Oklahoma City Water Utilities Trust, recently authored an editorial that appeared in The Oklahoman. The editorial referred to “over 20 treaties” between the tribes and the U.S. Government, one of which “revokes previous treaty rights after the tribes sided with the Confederacy during the Civil War.” The only treaty invoked by the Chickasaw and Choctaw tribes in this particular dispute is the Treaty of Dancing Rabbit Creek. That treaty, signed in 1830, conveyed the tribal lands whose water is in dispute today. There has been no treaty revoking the Treaty of Dancing Rabbit Creek.

Pete White makes no mention of treaty names. He provides no specifics, but strongly implies that the Indian tribes are traitorous and therefore deserve to have their rights trampled yet again. He implies, but does not openly state, that the tribes do not have a meritorious suit because the treaty upon which they base that suit has been revoked. Accepting his premise as true, one must reach a conclusion that is patently false. According to the U.S. Constitution, the ‘supreme law of the land’, the Treaty of Dancing Rabbit Creek is still good law. If it had been revoked, the tribes’ case would have already been thrown out of federal court.

The Choctaw and Chickasaw tribes allege in their lawsuit that the permit granted by the Oklahoma Water Resources Board to the Oklahoma City Water Utilities Trust would give the Trust the right to withdraw up to 90% of the annual estimated sustainable yield of Sardis Lake. Sustainable yield is the level of water that can be extracted from the system without compromising the ecosystem and the productivity of the resource. Thus, the Oklahoma City usage permit would place Sardis Lake dangerously close to environmental damage. In the case of drought and/or increased demand for use, Oklahoma City’s demands could endanger recreational uses upon which many local businesses depend. Oklahoma City is self-interested, and would hold southeastern Oklahoma’s resources subservient to its own water demand.

Although Oklahoma City clearly has a stake in the game that has nothing to do with the needs of all Oklahomans, Governor Fallin in her State of the State address implied strongly that the tribes may not share the goal of negotiating in good faith. This implication is insulting, considering the history of government-to-government relations between the tribes and the United States. While things are better, in the past the federal government has treated the tribes unfairly; Gov. Fallin now wants the State of Oklahoma to do the same.

Surface water, such as the water in dispute in Sardis Lake, are considered publicly-owned and subject to use permits issued by the Oklahoma Water Resources Board (OWRB).

Before the OWRB issues a permit to appropriate surface water, 4 conditions must be met. 1) the applied for amount of unappropriated water must be available, 2) a present or future need for the water must exist and the intended use must be beneficial, 3) the use of water must not interfere with domestic or existing appropriative uses, and 4) the use must not interfere with existing or proposed beneficial uses within the stream system and the needs of the area's water users if the application is for the transportation of water for use outside the area where the water originates.

The Oklahoma City permit application potentially violated both the third and fourth requirements. We do not know what the environmental impact will be on the Kiamichi River or Sardis Lake. Allowing the water levels in Sardis to fluctuate could devastate the fishing industry. Until we have the answers to these questions, we cannot know whether Oklahoma City should legally be granted its permit.

Recreational uses for fishing and tourism are beneficial uses, and the economy of southeastern Oklahoma depends largely on those uses. We need to find a solution to this dispute that advances the interests of all Oklahomans, and not just central Oklahomans. We can do this by doing a proper assessment of the use proposed by Oklahoma City. If that use would harm southeastern Oklahoma’s existing beneficial uses, the permit should be overturned in court. We cannot allow central Oklahoma to dictate to southeastern Oklahoma the shape of its economy, but that is a very real possibility if Oklahoma City is awarded its permit to the water of Sardis Lake.

Sincerely,

Brian Renegar

Note: Renegar is an Assistant Minority Floor Leader and Senior Adviser on agricultural issues in the Democratic Caucus, and represents House District 17, which encompasses parts of Haskell, Latimer, Le Flore and Pittsburg counties. He resides with his family in McAlester.

Romney wins first-ever Hawaii GOP Caucus, High Turnout overwhelms organizers

Wed, 14 Mar 2012 18:41:00 GMT

Just before midnight Tuesday night (March 13, Hawaiian Time), the Hawaii GOP reported that with 87 percent of the votes counted at its first-ever presidential caucus, Mitt Romney had 44.8 percent of the vote, followed by Rick Santorum at 25.4 percent, Ron Paul at 18.7 percent, and Newt Gingrich at 11.2 percent.

The caucus held the evening of March 13 across the state to determine the number of delegates for each presidential candidate was a smashing success – so much so, party volunteers and organizers were totally unprepared for the nearly 10,000 people who turned out to vote for their favorite candidate.

At Kalani High School in East Oahu, Republicans lined up before the doors opened at 6 p.m. and continued to flood the school cafeteria until the doors were supposed to close at 8 p.m. They didn’t close on time because of the crowd, and more people continued to straggle in.

Russell McGuire, a Ron Paul supporter who volunteered as a poll watcher at Kalani High School, helped organize voters as they arrived. There were just five Republican volunteers on site to help check in nearly 600 people, he said, which was not nearly enough.

“This was a learning experience. With just five volunteers, they were setting themselves up for failure. But people jumped in to help after they voted and we got it done.”

Part of the problem - people were not aware they were supposed to bring their party card or postcard from the GOP, so they had to re-register with the Republican Party of Hawaii. That – and a much bigger turnout than expected – led to precincts such as Kalani High School temporarily running out of party cards and even voter registration forms. Some people waited more than an hour for the cards to arrive from party headquarters.

McGuire said despite the problems, most people were excited about participating, even if it meant waiting. He hopes Republicans will hold caucuses like this in future elections and that Democrats do as well.

At Jefferson School on Kapahulu Avenue, Dale Evans spent one hour and 15 minutes in line with a couple of hundred people in front of her. She was finally allowed to vote 45 minutes after the polls were supposed to close at 8:45 p.m. She said that polling place finally closed around 9:15 p.m.

Republicans who showed up at Kainalu School in Kailua where they usually vote in the primary and general elections, were misdirected to Castle High School by a volunteer at party headquarters. After waiting in line for more than an hour at Castle, they were told they should have been sent to Enchanted Lake Elementary, another 20 minutes drive the opposite way. Fortunately, a GOP volunteer allowed them to cast their vote anyway. But lines were long at Castle as well because like Kalani, there were only five volunteers.

Congresswoman Pat Saiki, who earlier endorsed former Massachusetts Governor Mitt Romney, said it was “wonderful” to see so many Republicans together in one place. At first she was not supportive of a caucus idea, she said, but participating in the event changed her mind.

Sen. Sam Slom, a Rick Santorum supporter, said he has “never seen so many Hawaii Republicans in [my] life, not even at the annual state conventions.”

“God bless competition and God bless all the candidates,” Slom said.

Chris Baron, a Kuliouou Neighborhood Board member and one time House candidate, said this was a great opportunity to give input into who should be the next presidential candidate.

The caucus attracted many young people who support Congressman Ron Paul including Nicolas Gregory, President of the Youth for Ron Paul at the University of Hawaii, a group with around 160 members.

Gregory said he isn’t a “party” person, rather he votes for the candidate who best represents his principles. While Gregory had no problems casting his vote at Kalani High School, there was at least one college student who called him to complain she was turned away from voting in a district near the University of Hawaii after waiting for more than an hour, he said.

This is the first time Hawaii’s GOP held this type of event, which allowed all state Republicans to vote for their favorite presidential candidate and add to the national delegate total count at one of 41 districts.

There was considerable excitement leading up to the caucus, especially with independent rallies held by Ronnie Paul, Elizabeth Santorum and Matt Romney, children of Presidential candidates.

Hawaii is not a winner take all state, rather candidates are rewarded by their total vote count. The higher the turn out the more competition for the 17 delegate votes that will help candidates nationally get the presidential nomination. Those unhappy with the four candidates were able to write in their own favorite candidate’s name.

The candidates will be awarded delegates depending on the outcome of the primaries and caucuses. The winner will need to woo 1,144 delegates to win the Republican nomination. The winning presidential candidate will be announced in August at the National GOP convention in Tampa, Florida, and that nominee will take on President Barack Obama, a Democrat, in the November General election.

Republican Party Chairman David Chang said he realizes there were many organizational problems, in large part because of the larger than expected turn out. However, he said the participation shows the Republican Party in Hawaii is alive and well and “we are relevant.” He hopes those who showed up at the polls on Tuesday night carry over that enthusiasm through the General Election.

Hawaii's caucus coincided with primary elections in Mississippi and Alabama, which Santorum won. American Samoa also had a primary election.

[Update: Romney won the vote in American Somoa. Last weekend, Ron Paul won the popular vote in the Virgin Islands, but lost the delegate battle to Romney.]

Note: Hawaii Reporter is an online news website based in Oahu, and a partner of CapitoBeatOK and the Franklin Center. Photos accompanying the story were taken by Kimo Sutton of the Hawaii Reporter

Editor’s Notebook: Senate advances income tax cut, conservation plan, pension back-fill

Sat, 17 Mar 2012 19:29:00 GMT

From an editor’s notebook, a one-half percent cut in the state income tax clears the Oklahoma Senate, a conservation plan to save hundreds of millions of dollars in energy costs advances, and the upper chamber approves another proposal aiming to backfill on the state’s unfunded pension liabilities.

The tax measure moved ahead on a more-or-less party line vote, but on two of the measures, Senators found themselves united.

* * *

Last evening (Tuesday, March 14), after a relatively long work day, the Senate approved Senate Bill 1623, a proposal that would trim the state income tax from its present top 5.25 percent rate to 4.75 percent. While a significant reduction in state income taxes, the measure is the least dramatic of the proposals now working through the Legislature, which is considering a variety of proposals that would, over a decade or more, phase out the unpopular levy.

Sponsored by Senator Mike Mazzei, a Tulsa Republican, the measure would make the reduction over a two-year period. In a statement sent to CapitolBeatOK, he observed, “We are continuing to review and modify this legislation so that at the end of this process, we will have a plan that truly lowers taxes for hardworking Oklahomans and ensures the funding of core government services through the elimination of special interest tax subsidies.

“The plan will not raise taxes on retirees or military, and the working poor will not see a higher tax bill either. This bill will promote job-growth, create prosperity and a better quality of life for our citizens.

The Senate Finance Chairman noted the bill “includes a trigger to lower the tax rate again to 4.5 percent upon revenue growth of 4 percent over and above fiscal year 2011 tax collections.”

Senate President Pro Temp Brian Bingman, a Sapulpa Republican, commented, “Putting more money back in the pockets of hardworking people is the right thing to do for a competitive Oklahoma in the 21st century. I want to commend Senator Mazzei for proposing a bold plan of action to cut taxes and grow our economy—he knows private sector individuals and families, not government bureaucrats, are the real innovators, entrepreneurs, and drivers of our economy.

“Oklahomans have told us time and again they are hungry for a meaningful tax cut, and Senate Republicans have every intention of delivering for them.”

Despite its comparative moderation (a measure that cleared the Senate earlier this week would eliminate the income tax over a 10-year period), the measure attracted unified opposition from Democrats, and nearly-unanimous support from Republicans.

Voting yes on the roll call (recorded at 6:09 p.m. Tuesday) were 27 Republicans, including Bingman, Mazzei and Sens. Don Barringon of Lawton, Josh Brecheen of Coalgate, Rick Brinkley of Owasso, Bill Brown of Broken Arrow, Harry Coates of Seminole, Greg Childers of Oklahoma City, Brian Crain of Tulsa, Kim David of Porter, Eddie Fields of Wynona, John Ford of Bartlesville, James Halligan of Stillwater, David Holt of Oklahoma City, Rob Johnson of Kingfisher, Clark Jolley of Edmond, Ron Justice of Chickasha, Bryce Marlatt of Woodward, Mike Mazzei of Tulsa, Dan Newberry of Tulsa, Jonathan Nichols of Norman, Steve Russell of Oklahoma City, Mike Schulz of Altus, Ralph Shortey of Oklahoma City, Frank Simpson of Ardmore, Gary Stanislawski of Tulsa, and Greg Treat of Oklahoma City.

Voting against S.B. 1623 were 15 Democrats, inclulding Tom Adelson of Tulsa, Tom Ivester of Elk Cty, Judy Eason-McIntyre of Tulsa, Richard Lerblance of Hartshorne, Connie Johnson of Oklahoma City, Jerry Ellis of Valliant, Roger Ballenger of Okmulgee, Randy Bass of Lawton, Sean Burrage of Claremore, Earl Garrison of Muskogee, Al McAffrey of Oklahoma City, Susan Paddack of Ada, John Sparks of Norman, Jim Wilson of Tahlequah and Charles Wyrick of Fairland; Republican Mark Allen of Spiro also voted no.

Absent for the vote were three Republicans -- Sens. Cliff Aldridge of Midwest City, Mark Allen of Spiro, Patrick Anderson of Enid, and Cliff Branan of Oklahoma City – and Democratic Sen. Charlie Laster of Shawnee.

S.B. 1623 now moves to the House.

* * *

Pro Tem Bingman has often pointed to conservation steps he has advocated that could save millions of dollars in state government spending, resources that could then be available for other purposes, including tax reduction.

Monday (February 12), Bingman’s Senate Bill 1096, a measure described as “a behavior-based energy conservation program,” cleared the Senate on a unanimous 44-0 vote.

Bingman drew inspiration for the measure from an energy conservation program at Oklahoma State Unviersity that has lowered energy consumption by nearly $19 million since 2007.

In a statement sent to CapitolBeatOK after the measure cleared the upper chamber and headed to the House, Bingman said, “Oklahomans deserve smaller, simpler, and smarter government. They know we don’t have to do things the way they’ve always been done, just because they’ve always been done that way.

“We can save hundreds of millions of taxpayer dollars just by doing some basic, common-sense things our families do to save money at home—things like turning off the lights when they’re not in use, or turning off our computers at the end of the day. These savings are real, and we’ll see the return immediately in the first month our energy conservation plan is in place.”

The proposal sets a “cumulative energy savings target of at least 20 percent by the year 2020 when compared to 2012 fiscal year utility expenditures.” Senate staff projects that could reduce state government’s energy consumption 20-30 percent, and trigger $300-500 million in savings over a decade.

The measure would put the director of the Office of State Finance, or a designee, in charge of implementation. Governor Mary Fallin has backed such efforts. She commented, “Oklahoma can and should lead the way in implementing energy efficiency measures that will save hundreds of millions of taxpayer dollars. My thanks go out to the Senate for passing common-sense legislation that will reduce government waste and make our state agencies run in a more cost-effective manner.”

The bill now advances to the Oklahoma House of Representatives.

* * *

Senate Bill 1264, by Republican Dan Newberry of Tulsa, aims to use “spillover funding” to pay down state government pension debt.

Whenever the state’s Constitutional Reserve (better known as the Rainy Day Fund) is full, the proposed law would designate 30 percent of spillover fundilng to reduction of pension liability debt. The object would be to get pension funds to the 80 percent level considered sufficient for soundness.

Newberry’s bill also specifies, according to Senate staff, “The remaining 70 percent, if appropriated by the Legislature, could only be used for one-time or nonrecurring expenditures.”

Newberry said, in a statement to CapitolBeatOK, the bill would be “a strong step to avoid the troubles faced by states that have failed to control their long-term debt and have seen capital flee as a result.

He pointed to Illinois as an example of dysfunctional state government pension policies: “As a direct result of unsustainable pension and debt policies, states such as Illinois have raised taxes to a point where job creators are fleeing the state.

“In our effort to build a more prosperous Oklahoma and sustain our momentum as one of the nation’s leaders in job creation, we must make debt reduction a priority. I’m pleased my colleagues understand the importance of this issue.”

OSF says general revenue growth again in double digits, consumer confidence strong

Wed, 14 Mar 2012 03:47:00 GMT

Oklahoma consumers continue to show their confidence that Oklahoma’s economic recovery will be long lasting, Office of State Finance Director Preston Doerflinger said Tuesday (March 13) as he released a report again showing double-digit growth in the General Revenue Fund.

“We had almost a 15 percent jump in total General Revenue Fund collections in February, compared with the same month a year ago, and consumer spending was one of the biggest factors for the increase,” Doerflinger said.

“It’s evident that Oklahomans feel good about the future and believe the policies of the administration of Gov. Mary Fallin are making a difference,” added Doerflinger, secretary of finance.

“I believe this is reflected by the surge in sales tax collections this year. Our citizens have more money to spend and evidently think this is a good time to make big ticket purchases,” he said. “This is borne out by a sharp increase in motor vehicle sales.”

Doerflinger pointed out that last month’s report showed more state sales tax collections were recorded in January than in any month in state history -- $165 million.

“We followed that up in February with another strong showing in the sales tax category. That revenue source produced $145 million for the General Revenue Fund, beating the amount collected for the same month a year ago by more than 14 percent.

“Meanwhile, general revenue from the sale of cars, trucks and other motor vehicles soared by 134 percent. February is not normally such a strong month for motor vehicle collections. Consumers likely took advantage of unseasonably warm weather to express their confidence in the Oklahoma economy through vehicle upgrades.”

Total collections to the General Revenue Fund through the first eight months of FY-2012 were $3,506.5 million. This amount was $404.5 million and 13 percent above collections for the first eight months of FY-2011 and $347.1 million, or 11 percent above the total estimate for the same period of FY-2012.

In February, total collections for the General Revenue Fund were $283.4 million, an increase of $36.4 million and 14.7 percent from a year ago. The amount collected in February was $43.1 million and 17.9 percent more than projected.

It was the 22nd consecutive month that GRF collections have exceeded the same month for the prior year, and the 10th straight month receipts were higher than projected.

“It was also the 10th time in 15 months that we have recorded double-digit growth in our General Revenue Fund. That is impressive,” Doerflinger said. “Our recovery from the Great Recession has been broad-based and should continue in the months ahead, barring some kind of calamity on the national scene.”

The General Revenue Fund is the main source of funding for state government operations.

The March GRF report showed natural gas collections down again because of low prices, but the drop in receipts from that source was more than made up by increased oil revenue.

“Activity in the oil patch appears to still be contributing significantly to our economy.” Doerflinger said. “We’re hoping for a rebound in future months in natural gas prices, which would be a bonus.”

Major tax categories in February contributed the following amounts to the General Revenue Fund:

Income taxes – The total collected from individual and corporate income taxes in the month of February was $33.3 million for the FY-2012 General Revenue Fund, which was $5.6 million or 20 percent more than prior year collections and $32.5 million above the estimate.

Individual income tax receipts of $32 million were $5.2 million and 19.3 percent above the prior year and $36 million above the estimate.

Corporate tax collections contributed $1.3 million to the General Revenue Fund for the month, which was $0.4 million or 41.2 percent above February 2011 collections and $3.5 million or 73.4 percent below the estimate.

Sales tax -- Sales tax collections in February produced $144.7 million for General Revenue Fund, which was $18.1 million or 14.3 percent more than the prior year and $11 million or 8.2 percent above the estimate.

Gross production tax – Total gross production tax collections from natural gas and oil for the month were $53.7 million. This total was $1.3 million and 2.4 percent above collections for February of the prior year and $6.6 million and 14 percent above the estimate. Total gross production collections for the first eight months of fiscal year 2012 have exceeded the prior year by $93.2 million or 35.9 percent and have outpaced the estimate by $97.7 million or 38.3 percent.

February tax collections from natural gas accounted for $18.8 million in General Revenue Fund receipts, which was $2 million or 9.6 percent below the prior year and $8.2 million or 30.3 percent below the estimate.

Gross production oil tax collections to the General Revenue Fund for February were $35 million. This amount is $3.3 million or 10.3 percent above prior year collections for the month and $14.8 million or 73.1 percent above the estimate.

Motor vehicle taxes -- This tax source produced $17.9 million, which was $10.2 million or 134.1 percent above the prior year and $4.8 million or 37.1 percent above the estimate.

Other Revenue -- Other revenue produced $33.8 million in February. This was $1.3 million or 3.8 percent above the prior year and $11.8 million or 25.9 percent below the estimate.

McGuigan named to state board of directors, Society of Professional Journalists

Wed, 14 Mar 2012 04:06:00 GMT

Patrick B. McGuigan, an online, print and broadcast reporter with more than three decades of experience in the news business, has been named to board of directors for the Society of Professional Journalists (SPJ) in Oklahoma.

M. Scott Carter, president of the SPJ Oklahoma Professional Chapter, made the appointment this winter.

“For our board of directors, I wanted a diverse collection of opinions, and a diverse collection of professional journalists. Between the two of us, I think we represent opposite ends of the spectrum,” Carter said. The two men have known each other for more than two decades.

Carter is Capitol Bureau Reporter for The Journal Record, a business newspaper in Oklahoma City.

McGuigan is editor of CapitolBeatOK.com, an online news service with offices in the state Capitol in Oklahoma City. CapitolBeatOK is a project of the Franklin Center for Government & Public Integrity.

In 2011, its first year of eligibility for competition in the SPJ, CapitolBeatOK won two awards for excellence, including Honorable Mention in the “Best News Website” category, and third place in the “Web Design” category.

Also honored at the 2011 competition were four stories that first appeared on the CapitolBeatOK website, including a third place diversity news story (with Stacy Martin, editor of The City Sentinel) on federal civil rights laws and special needs children, and (with Martin) an honorable mention designation in education reporting. McGuigan individually garnered a third place award for his education reporting.

McGuigan that year won a total of 11 SPJs, eight for reporting and commentaries; and three institutional awards.

McGuigan is also associate publisher and executive editor of The City Sentinel, a weekly subscription-based newspaper in Oklahoma City, recognized as the state’s second best community newspaper in last year’s SPJ competition.

In 2010, McGuigan won eight SPJ awards, including one first place, five second place designations, and two third place honors. His previous honors included multiple SPJ awards dating from the early 1990s, two first place awards from the Associated Press/Oklahoma News Editors, and second in the Amys, a national competition.

McGuigan appears weekly on Capitol Report for News9, a CBS affiliate.

In addition to SPJ, McGuigan is a member of The National Press Club, Tulsa Press Club, and the National Federation of Press Women. He is past president of the Oklahoma City Gridiron Club, a charitable organization comprised of journalists who perform an annual roast of politicians. Proceeds from The Gridiron Show have provided several hundred thousand dollars in scholarships to students studying journalism in Oklahoma.

NOTE: Rodely, a member of the Oklahoma Journalism Hall of Fame, is past president of the Oklahoma City Gridiron Club, and writes occasionally for CapitolBeatOK.

Dell retrenches, but ranks among highest Quality Jobs recipients

Sat, 17 Mar 2012 19:33:00 GMT

Dell Computer Co. has received Oklahoma's third highest total of Quality Jobs Program cash since 2005-- $19 million -- despite posting a net job loss of almost 500 since its 2004 Oklahoma arrival, Oklahoma Tax Commission records show.

It was bested only by Tinker Air Force Base’s Air Logistics Center and ConocoPhillips, which received $36.9 million and $21 million respectively for the same six-year period.

The Air Logistics Center and ConocoPhillips both achieved net increases in new jobs, the report shows.

Dell’s Quality Jobs companies beat out such firms as Chesapeake Energy Corp., Bank of Oklahoma, Devon Energy, Hertz Corp, the Oklahoma City Thunder, York International, IBM, Wiltel Communications, (of Tulsa’s Williams Cos.) U.S. Cellular Corp., Prepaid Legal Services Inc., Halliburton Energy and Sandridge Energy Corporation.

If a business can sustain a new jobs payroll of at least $2.5 million, the state refunds at least 5 percent of its payroll taxes in cash.

Companies max out of the program in 10 years unless they form another legal entity creating new jobs, said Oklahoma Department of Commerce Program Director Richard Schwalbach. He said creation of multiple legal entities is allowable under program guidelines and can extend Quality Jobs cash reimbursements.

The Commerce Department administers the program. The agency requires monthly jobs reports of program participants so it can immediately cut off or increase cash reimbursements based on actual payroll taxes the companies paid that month.

Dell’s primary operation was to receive money based on creation of 2,000 jobs. However, Dell received its peak payment of $4.5 million in 2008 – the same year layoffs began, tax commission records show.

A company does not have to repay Quality Jobs money if it lays off or reduces its workforce, or closes its operation, said Schwalbach.

“There is a feeling on the part of some people that if a company in Oklahoma receives incentive money, that we should be vindictive if they leave,” he said. “Our standpoint at the Department of Commerce is, why the hell would they want to come here, and then have somebody come back at them [for repayment].”

He said that would damage economic development efforts to attract industry to the Sooner State.

“They’ve gotta live, … they’ve gotta breathe, … they can’t operate in a vacuum. A lot of times companies consolidate. You take your success and you take your lumps and you move on.”

Dell’s total employment of its original Oklahoma operation, Dell USA #1, stood at 1,078 by the 2011 fourth quarter, down from over 2,000 in 2005. Dell USA #2 has so far recaptured 448 of the jobs lost by the Dell USA #1.

Starting in 2006, it also began collecting Quality Jobs Cash and will extend payments a year. The second legal entity went a long way toward helping Dell reach that $19 million mark because the company reported the jobs were more highly paid, triggering higher cash rebates per job.

Dell – and any other company meeting critera – can create additional legal entities if it reports it is creating new jobs, officials say.

News reports indicate the OKC Dell jobs have included sales workers, managerial positions, computer professionals and call center employees.

The Oklahoma City Council sweetened Dell’s incentives with creation of a Tax Increment Financing District, which, for an extended period of time, relieves a company of certain property and sales taxes to help develop its new campus.

Dell’s TIF district was designed to relieve it of $250,000 to $1.5 million in sales and property taxes annually because it located in a blighted area, 3501 SW 15 St. The TIF assistance could be lengthy. City officials reported they might need to float up to $30 million in bonds which might help fund the rest of the commitment for the 120-acre campus and 120,000-square-foot building.

The state also paid for training Dell’s new employees through its CareerTech Training for Industry Program, news reports said.

But Dell has been in a major retrenchment mode according to company founder Michael Dell’s reports to shareholders.

From 2008 to 2010, corporate revenues fell from $61 billion to $52.9 billion.

Since 2008, Dell has shuttered its flagship Austin manufacturing plant, laying off 8,800 workers; and closed its Ottawa (Canada) call center, eliminating 1,200 workers. It also in 2010 slashed its Tennessee and North Carolina workforces, but refused to cite numbers.

The Quality Jobs Program paid $60 million to companies in 2011, show state tax commission records.

Over the past 19 years, Quality Jobs Act officials say it is among Oklahoma’s most powerful jobs incentive programs, and has paid out over $700 million to participating companies.

House Republicans press transformational state income tax phase out, hundreds of millions of dollars in reduced spending

Mon, 12 Mar 2012 22:04:00 GMT

A contingent of nine Republican members of the Oklahoma House of Representatives today (Monday, March 12) discussed their advocacy of legislation aiming to cut state income taxes “immediately” and ultimately to end the unpopular levy, detailing what they affirm are areas where spending reductions could take place sooner, rather than later, to get the process started.

There are a couple of essential operational assumptions for the group, leaders of a cadre of 31 House members who have co-sponsored a Laffer-style “supply side” plan to phase out that state’s personal income taxes.

First, based a dynamic analysis of the anticipated impact of the lower taxes, the group assumes that total personal income in the state would grow by 20 percent as the decade-long phase out takes place.

Second, government tax revenue would, they project, increase to $8.2 billion in appropriated dollars, compared to the current $6.6 billion, as the state economy grows due to resources remaining in private hands.

With those assumptions and projections in place, the group gave reporters a listing of up to $853 million in unnecessary or wasteful spending of taxpayer dollars, saying that was enough spending reduction to cover the anticipated $525 million needed to jumpstart the process.

Participating in a briefing for state Capitol reporters were GOP Reps. Leslie Osborn of Tuttle, Charles Ortega of Altus, Jason Murphey of Guthrie, Elise Hall of Oklahoma City, Corey Holland of Marlow, Tom Newell of Seminole, David Brumbaugh of Broken Arrow, Dennis Johnson of Duncan, David Derby of Owasso.

Rep. Osborn led the press conference. She is the sponsor of House Bill 3038, which has 31 co-authors and aims to end the state income tax incrementally, with a first phase leap to a 2.25 percent rate, compared to the present 5.25 percent rate.

Touting personal income tax reduction as a dramatic weapon for economic development, Osborn said she and co-authors “took title off” the bill because “we wanted it clearly understood this was a work in progress. This is a serious effort. We listened to concerns expressed” – by senior advocates, retirees, and military veterans. (Osborn’s proposal, as amended, is expected to be debated on the House floor this week.)

At the end of the session with reporters, the group circulated the list of possibly $853 million worth of spending where, she said, “reductions can be made … without effecting core services.”

Legislative leaders, Governor Mary Fallin and advocates of the Laffer-style plan have identified “core services” as education, transportation, public schools and a safety net for the truly needy.

State Rep. Murphey said Republicans aim to cut income taxes “immediately,” and meaningfully, to start the phase out. The plan includes, he said, “spending reductions up front that are strategic in nature.”

Murphey, earning favorable reviews and fiscal results for the consolidation and efficiency measures he has already shepherded to passage, said that “as chairman of the Government Modernization Committee, I consider this process a godsend. Nothing could be more disconcerting than enacting these efficiencies and reductions in spending and then having government agencies fill back in spending, in good years.”

Murphey has said savings from efforts already enacted to modernize government have exceeded expectations, and will continue to do so. These have included changes in payroll, accounting, infrastructure, information technology, central services and other reforms. He asserted, “There is a lot of room to ‘grow’ the effect of those reforms.”

Rep. Newell said “core services” do not include “things like golf courses and rodeos. … We are laying out a very do-able list that leaves core services in place.”

Saying he and colleagues are fighting FUD (fear, uncertainty, doubt) as part of this plan, Rep. Brumbaugh thanked state Rep. David Dank of Oklahoma City and state Sen. Mike Mazzei of Tulsa for their work, in the past year, identifying tax credits and carve outs that can be ended or reformed to jumpstart the tax cutting process.

He said it is “very important that we move forward with their reforms.”

Declaring it is “an exciting time to be in Oklahoma,” Rep. Johnson said tax reduction is intended “to improve the business climate. It’s not a mystery what we’re doing here.” He acknowledged, “We are willing, happy, to work with others to adjust the plan and particulars, with the end result of reducing taxes on Oklahomans.

This is about economic progress for our state, and creation of more jobs.”

CapitolBeatOK asked Rep. Osborn why this approach to economic development had not been tried before now. She responded, “Aspects of this have been attempted before. I had a conversation with Governor Frank Keating last week.”

She said Keating remembered business leaders told him that to grow, Oklahoma needed both right to work and elimination of the state personal income tax. She observed Keating, “Got one of those done but not the other.” Rep. Newell pointed out that for the first time in Oklahoma history, “we have a Republican governor, House and Senate.”

One reporter asked the state should, instead of cutting taxes, provide pay increases for state government workers. Osborn replied the state could provide, “better pay for state workers, with fewer state workers.” Murphey added he was in active discussion with leaders of the Oklahoma Public Employees Association to move the state to a “market-based system” for public employee pay.

Rep. Brumbaugh stressed the proposal was a “progressive plan, to lower taxes on all Oklahomans.” Government revenue would, the advocates of H.B. 3038 contend, continue to grow – to an estimated $8.2 billion in appropriated funds, larger in 10 years than its current base of around $6.6 billion. However, Brumbaugh said, under the income tax phase out, “Oklahomans would have more in their pockets.”

CapitolBeatOK asked if legislators planned to closely at school districts where the student-teacher ratio average is far below the 15.5-1 national average, yet where student academic performance remains poor. Rep. Murphey lauded Brumbaugh’s efforts to promote common education transparency, saying, “We are developing the tools needed” to press for future reforms.

Responding to questions about her proposal to end tax credits that benefit “working families in Oklahoma,” Osborn reiterated her object was to end state income taxation on lower income Oklahomans. She said, “Remember, the rate cut in the first year is to 2.25 percent.”

She noted that after phase out, there would be no personal income taxes imposed on any Oklahomans at any income level. She contended, “The plan we are advancing puts $2,000 more a year into the pockets of the average family of four.”

She added that polling conducted in 2011 found that 70 percent of Oklahomans said given a choice they would choose lower taxes and accept fewer state services in the trade-off.

Advocates of the income tax phase out said they had included many suggestions from the Oklahoma Council of Public Affairs, which last week detailed more than $2 billion in potential savings that could be enacted over a three-year period.