Child Advocacy Group Praises DHS Reform Efforts

Oklahoma Institute for Child Advocacy Executive Director Linda Terrell expressed support last week for a slate of DHS reforms passed by the Legislature during the 2012 session. 

“The Oklahoma Institute for Child Advocacy fought hard to demand bold reforms at DHS to fix the broken child welfare system this legislative session and Oklahoma lawmakers delivered,” Terrell said. "The reforms that passed the Legislature send a strong message: It's unacceptable for a system created to protect children to fail in that mission, and it's time for change.”

Governor to hold public bill signing of DHS reforms

Governor Mary Fallin will hold a public bill signing ceremony and press conference tomorrow afternoon to sign DHS reform legislation. I know many of you are interested in these reforms so I wanted to make sure you were aware of the plans and I hope you are able to attend. 

Thursday, May 31

3:30 p.m.  

Governor’s Blue Room

The reform bills include:

• HB3133 – Any individual who knowingly provides false information in a deprived child proceeding commits a felony. 
• HB3134 – DHS to eliminate the Field Operations Division and to vertically integrate all program divisions and staff; field operations and programs shall no longer be separated into different divisions. 
• HB3135 – Allows for DHS to release certain information when a child death has occurred.
• HB3137 – Gives the Governor authority to select the DHS Director, subject to confirmation from the Senate. Creates citizen advisory panels to evaluate core areas of DHS. 
• HJR1092 – Refers to the vote of the people a constitutional amendment which would delete the DHS Commission and allow the department to be administered under the Governor’s purview. (Included in the reform measures is HJR1092 that sends State Questions 765 to a vote of the people this fall. HJR1092 does not require the governor’s signature).

Two DHS Commissioners Resign

OKLAHOMA CITY—Governor Mary Fallin today accepted the resignations of Commissioners Steven Dow and Anne Roberts of the Oklahoma Commission for Human Services.

The resignations were offered after a letter by the Oklahoma Ethics Commission identified a conflict of interest concerning Dow’s simultaneous service as both a DHS commissioner and chief executive officer of the Community Action Project, a charitable corporation which operates daycare and child education facilities. Roberts, although not named in the Ethics Commission letter, resigned to address a potential conflict between her service as a commissioner and her employment with Integris Heath.

(See Commissioner Steven Dow's letter to Gov. Mary Fallin)

Rep. Jason Nelson, R-Oklahoma City, worked closely with both commissioners in his role as chair of the four member House Working Group on DHS and as a participant in The Pinnacle Plan working group.

“The reality and timing of Steven and Anne’s departure is very unfortunate for the ongoing reforms that both played such a critical part in helping bring about,” said Nelson. “It seems Commissioner Dow went out of his way to avoid any conflicts so the news is even more disappointing. 

"Steven and Anne are exactly the kind of volunteer public servants we need more of and I’m sorry to see them leave the commission. Because of the relevant experiences both Steven and Anne brought to the commission it made them extremely effective in helping prevent an ill advised trial in the Children’s Rights class action lawsuit and in helping craft the first-of-its-kind plan to reform our child welfare system under the unique settlement agreement in the lawsuit.”

Governor Fallin said she valued the service of both Dow and Roberts.

“Both Steven Dow and Anne Roberts are dedicated public servants who have poured countless hours into their roles at the Department of Human Services.” Fallin said. “Their work on the Pinnacle Plan, for example, will help to ensure that a new wave of reforms can be implemented at DHS that better care for children in state custody. Both have also been essential in the search for a new director.

“My thanks go out to Steven and Anne for their years of service as well as the selflessness they continue to exhibit by their actions today.”

Governor comments on competing income tax cut proposals

The Governor just issued the following statement:

"Governor Fallin has not decided whether or not to call a special session. However, it is clear that the House and Senate have reached a stalemate regarding tax cuts. The governor is still doing everything she can to deliver a meaningful tax cut this year and will announce a decision regarding the possibility of a special session by the end of this week."

House won’t take up any bill that raises taxes

OKLAHOMA CITY – House Republicans on Wednesday advanced a new income tax reduction measure that ensures Oklahomans receive either an income tax reduction or no tax change at all.

HB 3038 was signed out of the House General Conference Committee on Appropriations on Wednesday. The Senate now must act to advance it from the Senate General Conference Committee on Appropriations in order for it to be heard by both chambers.

“The House has kept this issue alive and it’s now up to the Senate to deliver tax relief for working Oklahomans,” said House Speaker Kris Steele, R-Shawnee. “The next step is for the Senate to hear the bill in their committee. I hope they pass this plan and uphold the commitment we’ve all made to the people of Oklahoma to lower their taxes. The ball is in their court.”

If House Bill 3038 is implemented, a large majority of taxpayers would receive tax reductions, a small amount would see no change and no taxpayers would experience a tax increase, according to the Oklahoma Tax Commission. 

HB 3038 proposes three growth triggers that would reduce the top personal income tax rate to 4.5 percent within three to ten years, dependent upon revenue growth. Each trigger would result in a .25 percent reduction. In order for the trigger to take effect, there must be a 5 percent annual growth in collections of motor vehicle taxes, use taxes, sales taxes, income taxes and corporate taxes apportioned to the general fund (for details, see attached bill and attached summary document).

“This plan is a lot like the tax reductions Oklahoma Republicans have enacted consistently for nearly 15 years in order to lower the rate from 7 percent in 1998 to 5.25 percent today. It allows us to continue down that path in a responsible, methodical manner that won’t cause any taxpayers to pay more,” Steele said.

The new plan keeps the current tax bracket structure and personal exemption intact. The tax bracket structure change and personal exemption modification proposed in HB 3061 – the bill supported by Senate leaders – are among the reasons why some taxpayers would see a tax liability increase under HB 3061.

“The House won’t take up any bill that raises taxes. Raising taxes isn’t what conservatives stand for, it’s not what Republicans stand for and it’s not what the House stands for,” Steele said.

Rep. Leslie Obsorn, R-Mustang, said HB 3038 is a responsible way to continue the economic momentum Oklahoma has experienced in recent years.

“This is a simple, straightforward way to lower taxes without having to raise anyone’s taxes,” said Osborn, the principal House author of HB 3038. “It’s not overly complicated. It doesn’t pick winners and losers, like the previous plan. It just says when government revenues grow, tax reductions should occur. That’s what we fundamentally believe as Republicans.”

HB 3038 would not affect the proposed fiscal year 2013 state budget because it does not mandate a tax reduction in fiscal year 2013.

“It won’t cost us a cent next year,” said Rep. Earl Sears, R-Bartlesville, chairman of the House Appropriations and Budget Committee. “It’s a win-win deal. Tying these triggered tax cuts to actual growth makes them far easier to pay for because they won’t go into effect unless the state has far more revenue than it did the previous year.”

New income tax cut plan proposed by House Republicans

New proposal contains no tax increases

OKLAHOMA CITY – House Republicans plan to introduce a new income tax reduction measure Wednesday that ensures Oklahomans receive either an income tax reduction or no tax change at all.

“We came here to lower taxes for hardworking Oklahomans we’re going to do exactly that with this new plan,” said House Speaker Kris Steele, R-Shawnee. “We’re excited about this plan, we believe in this plan and we’re going to pass this plan along to the Senate. Anyone who is for lower taxes should be for this plan.”

The new plan proposes three growth triggers that would reduce the top personal income tax rate to 4.5 percent within three to ten years, dependent upon revenue growth. Each trigger would result in a .25 percent reduction. In order for the trigger to take effect, there must be a 5 percent annual growth in collections of motor vehicle taxes, use taxes, sales taxes, income taxes and corporate taxes apportioned to the general fund. The criteria for the triggers are the same criteria used for the trigger in HB 3061, the previous income tax reduction proposal.

The new income tax plan will be contained in an amended version of HB 3038 that will be introduced during the House General Conference Committee on Appropriations meeting at 1:30 p.m. Wednesday.

Speaker Kris Steele

“This plan is a lot like the tax reductions Oklahoma Republicans have enacted consistently for nearly 15 years in order to lower the rate from 7 percent in 1998 to 5.25 percent today. It allows us to continue down that path in a responsible, methodical manner that won’t cause any taxpayers to pay more,” Steele said.

The new plan keeps the current tax bracket structure and personal exemption intact. The tax bracket structure change and personal exemption modification proposed in HB 3061 are among the reasons why some taxpayers would see a tax liability increase under HB 3061.

“This House cannot fully embrace that plan because it would raise the tax liability of too many Oklahomans,” Steele said. “While the bill as a whole does represent a net tax decrease, we just can’t embrace the portion of it that leads to a tax increase. We had serious discussions about this matter and have come out more determined than ever to reduce taxes for all Oklahomans.”

House Republicans rallied in support of the new plan.

Rep. Leslie Osborn
R-Mustang

“This is a simple, straightforward way to lower taxes without any having to raise anyone’s taxes,” said Rep. Leslie Osborn, R-Mustang, the principal House author of HB 3038. “It’s not overly complicated. It just says when government revenues grow, tax reductions should occur. That’s what we fundamentally believe as Republicans.”

The new plan would not affect the proposed fiscal year 2013 state budget because it does not mandate a tax reduction in fiscal year 2013.

“It won’t cost us a cent next year,” said Rep. Earl Sears, R-Bartlesville, chairman of the House Appropriations and Budget Committee. “It’s a win-win deal.”

The earliest possible trigger would be for fiscal year 2014. Preliminary Tax Commission estimates show the cost of the first trigger as $120.5 million, $152.3 million for the second trigger and $172.9 million for the third trigger. The cost of each trigger would be spread across two fiscal years due to the difference between tax years and fiscal years.

“Tying these triggered tax cuts to actual growth makes them far easier to pay for because they won’t go into effect unless the state has far more revenue than it did the previous year,” Sears said.

Speaker comments on House passage of DHS governance reforms

House Speaker Kris Steele issued the following statement on House Joint Resolution 1092, which passed the House today, 80-7, and House Bill 3137, which passed the House today, 67-23:

“These measures will make a necessary, positive culture change at DHS. The system has been struggling under an outdated, ineffective governance model that has tended to isolate the agency from any real accountability. Under these reforms, it will be perfectly clear that this agency answers to all the people ofOklahoma. Vulnerable citizens will be far better served as a result.” – House Speaker Kris Steele, R-Shawnee

HJR 1092 would create a state question allowing voters to decide whether to abolish the Commission for Human Services, the constitutionally-mandated, nine-member group of unelected volunteers that has overseen DHS since 1936. HB 3137 would require the DHS director to be appointed by the governor and confirmed by the Senate should the state question pass. HB 3137 would also establish advisory panels that would monitor each of the agency’s divisions to help agency leadership make informed decisions. The measures now go to the Senate.

Budget Deal Reached

OKLAHOMA CITY – Governor Mary Fallin and leaders in the Oklahoma House and Senate today came to a budget agreement that includes targeted funding increases for core services. Fallin and other state leaders said the proposed $6.8 billion budget was a fiscally conservative roadmap for the state that controls spending while allowing for improvements to be made in health and human services, public safety, transportation, education and other important areas of government (see attached documents for more information).

“This budget deal is a responsible, fiscally conservative agreement that appropriately funds core government services,” Fallin said. “The targeted increases we are pursuing will help to improve child welfare services, repair structurally deficient bridges, increase access to health care in rural areas, and boost resources for public safety. Additionally, this budget agreement will also ensure the state supports common education and keeps its promise to teachers by funding health benefits and bonuses.  All of these things will help to improve state government services and make Oklahoma a better place to live and raise a family.” 

House Speaker Kris Steele said the budget deal successfully limited unnecessary government growth.

“This budget moves Oklahoma forward on multiple fronts,” said Steele (R-Shawnee). “It represents a commitment to responsible fiscal conservatism by limiting unnecessary government growth while still increasing resources for government’s core services. It’s a straightforward, balanced budget that will benefit the public and private sectors alike in many different ways.”

Senate Pro Tem Brian Bingman said the proposal represented a common sense, conservative approach to budgeting.

“Oklahomans deserve a conservative budget that reflects our values,” Bingman (R-Sapulpa) said.  “Budget dollars should be targeted to fund important core functions of government—giving Oklahoma’s kids a better education, fixing our broken roads, and protecting society’s most vulnerable children from abuse and neglect. This agreement demonstrates a commitment to govern in a fiscally responsible way-- I’m proud of our common-sense, conservative approach.”

Budget agreement summary by agency

FY 2013 Budget Proposal: Funding Increase Highlights

• State Department of Education: 

• Annualization of FY 2012 $52.4 million supplemental for flexible benefit allowance for teachers and support staff and National Board Certified Teacher bonuses.

• CareerTech : 

• Annualization of FY 2012 $1.4 million supplemental for operations

• Higher Education: 

• Annualization of FY 2012 $10 million supplemental for operations.

• Military:  

• $500,000 for renovation of armories

• Transportation: 

• $99 million increase to repay FY 2012 fund transfer; ensures eight year road and bridge plan remains intact and anticipates implementation of the Bridge Improvement and Highway Modernization plan proposed by the governor in future fiscal years

• Health Department:

• $1 million increase for infant mortality initiatives
• $500,000 for Cord Blood Bank

• Health Care Authority:

• $3.080 million to fund the rural residency program to increase access to health care in rural and underserved areas.
• $57 million – Maintenance of Effort and Growth
• Transfer of Behavioral Health dollars to the Department of Mental Health - $118,492,703

• Department of Human Services: 

• $25 million to fund Pinnacle Plan reforms
• $17 million for maintenance of effort and replacement of one-time funding in FY-2012
• $1.5 million for Advantage Waiver Program to provide reimbursement rate increases for home health care providers that serve the elderly
• $1.5 million to provide Developmental Disabilities Services Division (DDSD) reimbursement rate increases
• $1 million to reduce the current DDSD waiting list

• Department of Mental Health and Substance Abuse Services:

• $5.5 million for Systems of Care Grant and for an additional crisis center. 
• $667,000 for mental health screenings to determine the risks and needs of each offender; justice reinvestment. 
• Transfer of Behavioral Health dollars from OHCA - $118,492,703

• Department of Rehabilitation Services : 

• $300,000 increase to reduce the waiting list for services

• University Hospitals Authority: 

• $3 million increase for  Tisdale center in Tulsa

• Veterans Affairs : 

• $1 million increase to increase nursing staff and reduce staff/patient ratios

• Commerce:  

• $500,000 for Base Realignment and Closure Commission

• Conservation Commission: 

• $500,000 increase for water monitoring projects

• Water Resources Board:  

• $1.5 million increase for water monitoring projects

• Attorney General: 

• $5 million supplemental for water lawsuit and $2 million for justice reinvestment grants to local law enforcement agencies

• Corrections:

• $2.9 million to close designated wings of the Oklahoma State Penitentiary in McAlester, build a lethal fence, transfer up to 800 prisoners to private beds
• $1 million for justice reinvestment

• Medicolegal Investigations: 

• $1 million supplemental and $1.5 million annualization of supplemental to obtain re-accreditation (personnel, equipment and infrastructure improvement)

• Department of Public Safety:

• $5 million for  authorization of an annual trooper academy with capacity for 40 participants

Fallin, House, Senate Leaders Unveil Tax Cut, Tax Simplification Plan

OKLAHOMA CITY -- Governor Mary Fallin and leaders in both the House and Senate today introduced a joint plan for income tax cuts and tax code simplification. The proposal lowers the top income tax rate from 5.25 percent to 4.8 percent in Fiscal Year 2013 and includes a one-time additional tax cut tied to a revenue growth trigger in FY 2015. If state revenue grows by at least 5 percent in that year, the income tax rate would be reduced further to 4.5 percent.

The joint proposal represents a tax cut of over $218 million to Oklahomans when fully implemented in FY 2014, and would cut taxes by an additional $121.4 million in FY 2015 should the growth trigger be reached. Lost revenue is partially offset by tax reforms totaling $117 million when fully implemented in FY 2014. These reforms include the elimination of 33 tax credits, the elimination of certain deductions and the elimination of the personal exemption for single filers making over $35,000 and joint filers making over $70,000 (see attached one pager for new details).     

The new plan also simplifies the tax code by dropping the total number of tax brackets from seven to three. New rates will be set at 1 percent, 3.3 percent and 4.8 percent.

“This proposal represents a significant income tax cut and an important step forward for Oklahoma,” Fallin said. “Our plan is a responsible proposal that will go hand in hand with a budget that protects and supports all core functions of government. It also delivers a substantial tax cut that will allow Oklahomans to keep more of their hard-earned money while improving the environment for job recruitment and job retention in the state. I applaud both House and Senate leaders for coming together on this issue and giving the people of Oklahoma some well-deserved tax relief.”

House Speaker Kris Steele also spoke in support of the plan.

“Collections through April of this year are now $350 million higher than originally expected,” said Steele. “Oklahoma is growing. We have a choice to either spend all that money on more government, or give it back to the hardworking people of Oklahoma. We choose the latter. An income tax cut is not only the smart thing to do for Oklahoma’s economy, it’s the right thing to do for our citizens.”

Senate Pro Tem Brian Bingman said the tax cut would help small business owners while protecting core government services. 

“Today’s tentative agreement gives the people of Oklahoma a real and meaningful tax cut,” said Bingman.  “Senate Republicans have always believed lowering the tax burden is an important part of creating jobs and economic freedom in Oklahoma.  And today, we’ve taken an important step forward that shows the people of Oklahoma they can count on us to keep our word.  This plan will help more of our private sector citizens and small business owners be the innovators, entrepreneurs, and drivers of our state economy—all while protecting important core government services like teaching in the classroom.”

House announces major DHS reforms

OKLAHOMA CITY – House Speaker Kris Steele and the House DHS Working Group today announced plans to finalize legislation designed to significantly improve components of the Oklahoma Department of Human Services.

The legislation comes as the agency prepares to implement the Pinnacle Plan, the child welfare services improvement plan the agency is developing with a panel of national experts.

“DHS is on the verge of the sweeping culture change it has so desperately needed for years,” said Steele, R-Shawnee. “The House DHS Working Group was just as involved in making the Pinnacle Plan the strong plan it is today as it was in developing these vital reforms. If these measures pass and the Pinnacle Plan is implemented, the most vulnerable Oklahomans will be far better served and the state as a whole will benefit tremendously.”

Among the group’s policy recommendations this session are to:

• Vertically integrate the agency’s child welfare division;
• Abolish the Commission for Human Services;
• Allow for gubernatorial appointment of the DHS director;
• Disclose more information on child welfare cases;
• Establish a worker certification program.

Specific legislative language outlining those proposals and others will be introduced this week into DHS reform measures that are awaiting action in conference committees.

The policy proposals were developed collectively by the bipartisan House DHS Working Group comprised of Reps. Jason Nelson, R-Oklahoma City, Pam Peterson, R-Tulsa, Pat Ownbey, R-Ardmore, and Wade Rousselot, D-Okay.

“This legislation is about culture change from the top to the bottom,” said Nelson, the leader of the working group.

Since October, the House DHS Working Group has engaged in an aggressive, four-pronged strategy to improve DHS through significant study of and reforms to the agency’s governance, structure, personnel policy and resource allocation. Steele formed the group in response to a shared desire between House members, agency officials and other stakeholders to improve delivery of services by DHS, particularly for children in state custody.

The working group operated in an unconventional manner by holding nearly all of its meetings outside the Capitol, often times on the front lines with DHS workers across the state. So far, the group has met with more than 400 workers in 22 counties. The group will continue working in the future.

“Many of our recommendations are based on what we’ve learned from the DHS workers who do these critical jobs day in and day out. We wanted to hear from them rather than them hearing from us,” Peterson said. “A lot of our group’s ideas went into the Pinnacle Plan. Some of these bills complement parts of the Pinnacle Plan and others go beyond it with reforms that will reshape DHS for the better.”

THE LEGISLATION

"Rob" - A Lindsey Nicole Henry Scholarship Story

The Lindsey Nicole Henry Scholarships for Student with Disabilities Program Act allows students with disabilities who have an individualized education program (IEP) to qualify for a scholarship to attend a private school that meets the accreditation requirements of the State Board of Education.

Fallin is spokesperson for OKDHS public service announcement

OKLAHOMA CITY -- Governor Mary Fallin has partnered with the Oklahoma Department of Human Services (OKDHS) to encourage more Oklahomans to become foster and adoptive parents.

Fallin issued a proclamation recognizing May as Foster Care Awareness Month in Oklahoma and she is serving as spokesperson for the statewide OKDHS public service announcement (PSA) campaign. Fallin appears in a PSA urging Oklahomans to get involved and "change a child's lifetime."

More than 8,000 children and youth are currently in foster care and there is an urgent need for foster and adoptive families, especially for teenagers, sibling groups and children who have special medical or physical needs. For those who may not be able to foster children, there are other ways to get involved such as volunteering at a local children's shelter, hosting a toy drive, or becoming a trained volunteer to assist with home studies.

The PSA will be broadcast on commercial television and radio stations across the state beginning in May at no cost to OKDHS. The stations donate free air time for all of the agency's public service announcements.

To learn more about OKDHS foster care and adoption, or how to become a volunteer, visit the OKDHS Web site or the Oklahoma Bridge Resource Families Web site. You can also call 1-800-376-9729.

Fallin Approves of “A-F” School Reform Rules

OKLAHOMA CITY – Governor Mary Fallin last week approved rules submitted by the Oklahoma State Department of Education (SDE) establishing an A-F report card system to grade school performance. The rules were adopted by the State Board of Education in March, based on a law (HB 1456) enacted by the Legislature and signed by Governor Fallin in 2011.

Fallin said the law, as well as the rules submitted by the SDE, are part of a comprehensive effort to improve performance and accountability measures at public schools.

“Nothing is more important to the future of this state than improving our schools,” Fallin said. “Job growth and prosperity are directly linked to workforce quality and educational achievement. All of those things require high-quality educational institutions at every level.”

“To ensure that we are providing quality schools that are serving our children well and to identify those instances where we are not, the state is establishing an A-F grading system to measure school performance. This new system will allow parents, students, teachers and administrators to quickly and accurately evaluate the performance of their schools based on data linked to graduation rates, high level course work, performance on standardized tests, and a variety of other factors. In those instances where a school receives an unsatisfactory score, the state and community can then work cooperatively to improve that school and to deliver the kind of high-quality learning environment that our children need and deserve.”

“The ‘A-F’ grading reform passed in the Legislature and signed into law last year was an important step forward for the state and the education community, and the rules submitted by the Board of Education accurately reflect the intent of that reform effort.”

Superintendant of Public Instruction Janet Barresi agreed that the new reforms, outlined in detail in the rules approved by the governor, would increase transparency and accountability in education.

“The A-F reform has strong support among parents and the general public,” Barresi said. “The will of the people was carried out last year when legislators passed the reform and it was signed into law.”

“It is clear that Oklahoma must encourage excellence, not reward mediocrity. One of the best ways to do this is to give parents and citizens a clear-cut, easy-to-understand way of learning about school performance. Parents shouldn't have to interpret obscure numbers to find out how their child's school is doing. The new A-F system is a step forward in transparency and accountability.”

For more information on the A-F grading system, click here.