Rep. Mark McCullough Will Not Seek Re-election

OKLAHOMA CITY –State Rep. Mark McCullough (R-Sapulpa, District 30) announced his intention to not seek re-election in 2016 and to retire from the House of Representatives after serving out the remainder of his current term. District 30 includes the communities of Sapulpa, Glenpool, Kiefer, Mounds, Liberty, Oak Ridge and Bixby.

“It has been the honor of a lifetime to represent the area where I grew up and where my family is from. I am very humbled that my friends and neighbors saw fit to allow me to serve them in the Legislature these ten years. I am grateful.” McCullough said.

McCullough entered the Legislature in 2006, winning a highly competitive election, and again in 2008 in another very competitive election year. He faced token opposition in 2010 and ran unopposed in the last two elections. 

Reflecting on his motivation for running for office, and now choosing to leave after his current term is up, McCullough stated: “The Lord put it on my heart to run for office, and now I believe He’s telling me its ok to step away. There will always be another battle to fight at the Capitol, and I’ve fought my share – and maybe a few more,” he added with a grin. “I’ve tried to be a good steward with my time in office, and now it’s time for the people of District 30 to begin the process of choosing who that new steward should be.”

When asked to comment about the impending legislative session and what he might do after leaving office he stated: “It’s definitely the budget. We are really in the hole this year, and I imagine most of my time will be spent on that.” I’m going to work until the bell, though, that’s how my parents taught me. After next November? Just keep practicing law and be a husband and dad. My family was very patient to share me with the state for a while and now I just want to try and spend more time with them.”

McCullough has been in solo law practice in Sapulpa for nine years where he focuses on Probate and Estate Planning. He is assisted in his practice by his highly effective legal secretary, office manager, and wife of 17 years, Charlotte McCullough. His son Everett is in sixth grade at Sapulpa Middle School and his son Clayton is in fourth grade at Freedom Elementary.

While in the Legislature, Rep. McCullough was involved in several major policy initiatives including pension reform, lawsuit reform, criminal justice reform, improvements in Medicaid and perhaps most significantly, worker’s compensation reform.

McCullough was an early – and sometimes lonely – voice in the Legislature for comprehensive worker’s compensation reform, ultimately being asked to serve on the House legislative team responsible for writing and guiding the final reform bill through in 2013.

When asked to reflect on that experience, he said, “Years back, I’d get asked to speak at worker’s comp conferences as the ‘other guy.’ I’d speak on the huge problems facing our system and the possibility of switching to a modern administrative system. I remember having the trial lawyers in the back of the room snicker loudly and otherwise express a lot of hostility.” He continued: “Well, a few of us never quit studying and preparing, so we had all the elements ready to go “off the shelf” when leadership decided to run the bill. And now we finally have a model administrative system based on best practices. A system that I believe is serving our workers much better than the old adversarial one, and is sending insurance premium rates through the floor, which helps businesses stay competitive – just like we thought it would.” 

In addition to policy work, McCullough has also served as Chairman of Judiciary Appropriations and Budget Committee for the last several years where he is responsible for evaluating and meeting the budget needs for several state entities including the Courts, the District Attorneys and the Attorney General’s office. He also serves on the full Appropriations and Budget Committee, and as such is on the Budget Team, where he has focused the bulk of his time and efforts in the Legislature the last few years. 

“The budget is a jealous and fickle mistress.” McCullough said. “It takes a ton of time and you don’t know which way it’s going to toss you at any given moment during session. You have to keep a lot of Alka Seltzer handy. The yearly budget is a big, very real, fight between competing priorities – with well represented advocates. One positive aspect of earning a spot on the Budget Team has been the opportunity to strongly advocate – year after year  – for the Common Education budget: either for a bigger slice of the pie or a lesser cut if times were tough. When it comes to the eight schools districts in District 30, it has always been an easy choice of what to fight for.”

Finally, Rep. McCullough has had a career long focus on the importance of preserving the traditional, nuclear family. “I just sensed early on that this was something that the Lord wanted me to focus on, and the message is this: The family is desperately important, especially to the well being of children. All the research tells us, the Scriptures tell us and common sense tells us that kids do better with mom and dad. We shouldn’t vilify single parents, we should help them, but we should do everything we can to keep couples healthily, happily married.”

McCullough held numerous studies on this issue of family fragmentation and its negative effects on society, its costs to government and how to prevent it. He also held press conferences raising awareness of the issue and ran several bills aimed at chipping away at the problem. One major success came two years ago when, working with Rep. Jason Nelson and many others, a bill passed bringing the first substantive change in Oklahoma’s divorce laws since the late 1950s. The bill required a statewide, pre-divorce class that included topics such as substance abuse, co-parenting, domestic violence and potential reconciliation. The bill was based on Tulsa District Court’s highly successful model.

McCullough went on to state that this accomplishment, like every major achievement in the Legislature, was a team effort, requiring seriousness of purpose and a focus on eternal principals. “If you hang around me down at the Capitol very long, you’ll hear a few saying bounce around the office with some regularity: 1) There is no “I” in Team, 2) I take the job seriously… but I hope I don’t take myself too seriously, and 3) If its not about God, what are we doing here?” He concluded: “I’m not the best Christian sometimes. Just ask the people that have to work with me. We all need Christ’s grace. But I do sincerely attempt to seek the Lord in all that I do in this job, while trying to weave Biblical principles into every bill and every transaction over which I have influence. And I pray in some small way, that has made a difference.”

Fallin Announces Record Increases in Education Resources from School Land Holdings

OKLAHOMA CITY – Governor Mary Fallin announced today that public schools, colleges and universities have received record earnings during the last four fiscal years from funds distributed by the Oklahoma Commissioners of the Land Office (CLO).



More than $519.9 million has been distributed to the CLO’s education beneficiaries during the 2011 through 2014 fiscal years, according to the agency. That amount is 57 percent, or $188.7 million, more than the $331.2 million distributed during the next-highest four-year period in state history (2007-2010).

“This is great news for public education,” said Fallin. “This money provides much-needed additional funds for school districts, colleges and universities. The increase in CLO dollars is one more way to supplement the $150 million increase legislators appropriated for K-12 education in the last two years. I appreciate the hard work of the land office commissioners and CLO Secretary Harry Birdwell for helping to produce these high returns.”

The CLO distributes money from oil and gas exploration and land leases on the agency's controlled property as well as dividends from investments made by the trust fund.

Public schools received most of the money, or $381.9 million of the $519.9 million, distributed the past four fiscal years by the CLO. Higher education received $137.9 million.

The money for kindergarten-through-grade-12 schools is distributed to each of the state's 517 school districts based on school attendance numbers.

The value of the CLO’s permanent trust fund since 2011 has grown by nearly $700 million, from $1.606 billion to $2.304 billion.

It took 95 years for the CLO’s permanent trust fund to reach the $1 billion threshold. It took only 11 additional years for the permanent trust fund to pass the $2 billion mark.

The CLO is assigned the task of managing, leasing and selling properties set aside decades ago to be managed for the maximum financial benefit of Oklahoma's common and higher education schools.

Senate Committee Amendment Could Extend School Year, Cut Transportation Funding

A bill aimed at providing more resources for Oklahoma schools could extend the school year. The amended legislation has been approved by the Senate Appropriations Committee. In its current form, House Bill 2642, also known as the “Securing Educational Excellence Fund,” by Sen. Jim Halligan in the Senate and Rep. Lee Denney in the House, would divide current “off the top” funding that now goes to transportation and give half of that amount to public schools.

Halligan, who chairs the Senate Appropriations Subcommittee on Education, said the national recession resulted in decreased funding for schools in recent years, while student enrollment has increased. Lawmakers are also dealing with a shortfall of $188 million for the coming fiscal year.

Halligan said in the bill’s current form, for every $60 million provided to education, one additional instructional day would be added, up to a total of 10 days.

Currently, $357 million comes off the top of the state budget annually and is earmarked for a fund to repair or replace aging bridges and roads. That fund automatically increases by approximately $60 million a year until it reaches a cap of $575 million, and the state is currently projected to meet that cap by fiscal year 2018. Under HB 2642, education would receive half of the $60 million annual increase, but Halligan says that would only result in a three and a half year delay before the roads fund hit its maximum cap.

The measure, which was approved Wednesday on a vote of 20-3, will next be considered by the full Senate.

“It’s certainly possible we’ll see more changes in this bill, but this is something we’ve got to keep working on,” Halligan said.

Denney chairs the House Appropriations and Budget Committee on Common Education. She said lawmakers value the work of educators in their districts.

Governor Mary Fallin Statement on Upcoming Education Rally

OKLAHOMA CITY – Governor Mary Fallin today released the following statement regarding the upcoming March 31 education rally to be held at the Oklahoma State Capitol.

"I support more funding for common education and I appreciate teachers, parents and students being engaged on this issue. Last year I signed into law a budget that delivered over $120 million in new education money, by far the biggest increase in resources to any area of government.

“This year I proposed another increase of $50 million in K-12 education funding increases, despite a $190 million budget shortfall that will lead to spending cuts at most agencies.

“Providing adequate funding is vital to increasing educational attainment and student performance in Oklahoma. Equally important are the careful implementation and funding of education reforms focusing on accountability in schools, child literacy, and the creation of more rigorous standards in the classroom. Giving our teachers, administrators, parents and students the tools they need to succeed continues to be a top priority of mine."

State Board of Education approves FY 2015 budget request

OKLAHOMA CITY (Oct. 29, 2013) – The Oklahoma State Board of Education today approved a $2.5 billion fiscal year 2015 budget request for the Oklahoma State Department of Education (OSDE). Representing a $174.9 million increase over last year, the proposal will go before the state Legislature when it convenes in February.

The budget requests an $81.4 million increase in financial support for schools, part of $1.9 billion overall in the State Aid Funding Formula.

State Superintendent of Public Instruction Janet Barresi said the budget addresses a number of academic and financial challenges facing Oklahoma schools.

“This budget is responsible, realistic and takes an important step forward in connecting new funds to proven performance,” she said. “Adequate funding is critical to a sound education, of course, but money itself is not a cure-all. Oklahomans must know their tax dollars are being invested wisely in schools.”

To that end, the budget request sets aside 20 percent of the new funds – about $16 million — to reward schools that show academic improvement among a large student population on free and reduced lunches.

“This is a way to recognize and build on the successes of the many schools in our state that are rising to significant challenge. Through innovation, tenacity and a commitment to excellence, these teachers, administrators and parents are working hard to ensure a bright future for the next generation of Oklahomans.”

Barresi urged district superintendents to use part of the new funds to increase teacher pay.

“There is no question that inadequate teacher salaries are a big reason we lose many of our best and brightest educators to other states,” she said.

The funding request includes $593.5 million for the activities budget, an $86.4 million increase over FY 2014. That figure reflects how Oklahoma schools are continuing their shift toward stronger academic standards and heightened expectations, providing $69 million for the implementation of various reforms.

That amounts to a $26 million increase in reform spending over last year.

This includes:

$21.7 million for Achieving Classroom Excellence (ACE) remediation;
$16 million for reading sufficiency;
$5 million for REAC3H coaches ;
$2.8 million for school reform competitiveness grants;
$2.4 million for the Think Through Math program;
$564,000 in Oklahoma Academic Standards implementation;
$500,000 for third-grade reading readiness support teams; and
$200,000 for charter school incentives.
In the wake of the Affordable Care Act, health insurance costs are taking a significant portion of the would-be budget.

“As is proving to be the case throughout the nation, the consequences of Obamacare are severe and painful. Millions of dollars that could have gone to the classroom instead must be eaten up in insurance costs,” Barresi said.

OSDE is requesting a flexible benefit allowance budget of $426.9 million in FY 2015, a $59 million increase over last year. More costly premiums and an increase of fulltime, insured school employees are responsible for the requested increase.

OKDHS Response to 1st Co-Neutral Commentary

Statement from OKDHS -- The Oklahoma Department of Human Services appreciates the Co-Neutrals’ recognition of the progress our agency has made during the first year of implementing the Pinnacle Plan. This includes the reorganization of Child Welfare Services to achieve sustained progress, greater accountability and transparency, as well as more effective and efficient communication and performance. The new management team assembled within Child Welfare Services ensures new and current workers will have the necessary leadership and supervisory guidance to carry out their child welfare responsibilities. 

Co-Neutral Commentary One, Issued October 24, 2013

Another main point of progress was the integration of the Office of Client Advocacy and Child Protective Services investigation protocols, standards and reporting systems. This change will provide us with consistent child abuse and neglect data in both family homes and settings where children are placed in congregate care such as group homes and residential treatment facilities. 

We believe we have in fact made a lot of progress in just one year’s time. This is not a sprint, it is a marathon. We acknowledge that we have not yet met every target, however, we are totally committed to making the necessary improvements to our system that everyone wants. We fully expect to meet the Pinnacle Plan goals over the next four years. 

DHS greatly appreciates the Governor’s and the Legislature’s strong support of our work and in securing $57 million in additional funding to assist DHS in meeting our obligations under the settlement agreement. 

We wholeheartedly agree with the co-neutrals this is an iterative process to establish baselines and targets for DHS to report progress with Pinnacle Plan initiatives. This will be an ongoing process for some metrics due to the realization that further clarification is needed about the data which could not have been predicted when the Metrics Plan was agreed upon. For example, the public reporting requires DHS to post data each month prior to the co-neutral’s validation process. The validation process may result in additional changes in previously reported data, future targets and measures. Both parties are continuously working on the data and what the data means. 

Ongoing review of the data may often result in revised measurements. Another example of a changing data set is the foster home recruitment goal. DHS, in good faith, recruited and approved in excess of the target number of foster homes as defined in the baselines and metrics both parties agreed to previously. Only after further reflection on the data did the issue of how long the approved homes would be open without children being placed become a factor in determining the counting of such homes towards the target. 

“[T]he Co-Neutrals will judge good faith from the activities and decisions of the state, and not just its intention to do better or improve,” and “will not draw any conclusions with regard to DHS’ good faith efforts until their next report to be released in the first half of 2014.” -- From the Co-Neutral Commentary

Obviously, DHS needs a sufficient number of active foster homes to care for the children coming into state care. To recruit homes that are never used would be a waste of resources. 

DHS committed in the Pinnacle Plan to build a pool of homes and create a matching process whereby children would be placed with the best foster home and avoid multiple moves. To have a successful matching process, DHS will need a wide variety of homes across the state in which to place children together with their siblings, in their home communities and in their same schools. In a statewide system such as this, it stands to reason that some of the homes may not have children placed in them for a period of time. 

We understand further discussion of the metrics in this data set is warranted in light of these circumstances and additional consideration given to the goal of a statewide matching process. We are committed to continuing our work with the co-neutrals to further refine data collections and definitions, and to ensure accuracy and consistency in our data reporting. We appreciate the expertise and the guidance offered by the co-neutrals as we work together to develop the measurements of our progress.

The seven performance categories measured:

• Maltreatment (abuse and neglect) of children in the state’s legal custody; 

• Development of foster homes and therapeutic treatment foster homes (TFCs); 

• Regular and consistent visitation of caseworkers with children in the state’s legal custody; 

• Reduction in the number of children in shelters; 

• Placement stability, reducing the number of moves a child experiences while in the state’s legal custody; 

• Child permanency, primarily through reunification, adoption or permanent guardianship; and, 

• Manageable caseloads for child welfare staff. 

Senate bill would provide resources to combat child abuse

OKLAHOMA CAPITOL -- The state Senate this week approved legislation that would strengthen the ability of the Oklahoma State Bureau of Investigation (OSBI) Child Abuse Response Team (CART) to combat child abuse.

Senate Bill 1002 would provide a funding mechanism for CART, and the Internet Crimes Against Children (ICAC) Task Force. ICAC agents investigate technology-driven crimes against children including child pornography, child abuse and human trafficking.

Sen. Dan Newberry, author of the proposal, said the bill would provide law enforcement with the resources to protect children and prosecute some of the state’s worst offenders.

“As lawmakers, we have a responsibility to ensure the safety of our most vulnerable citizens, and guarantee that crimes against them are prosecuted efficiently,” said Newberry, R-Tulsa. “To do so, we must give law enforcement the resources and preventative tools they need. Crimes like this permanently impact the lives of far too many people. This bill will strengthen our ability to combat child abuse in Oklahoma.”

Newberry said he was motivated to file the proposal after learning about the shocking amount of uploading of child pornography being detected by the ICAC Task Force. ICAC agents report that as many as 1500 such crimes occur daily.

Newberry’s legislation states that any person convicted of a crime punishable by a fine of $25 or more, or by incarceration, will be ordered to pay a $10 fee. Funds collected through the fee would then be distributed to the Internet Crimes Against Children Prosecution Revolving Fund and the OSBI Revolving Fund for use by CART and the Internet Crimes Against Children Unit.

Approved by a vote of 46-0, the measure now advances to the House for consideration.

“I’m proud that my colleagues unanimously stood in support of this bill,” said Newberry. “This law would allow Oklahoma parents to rest easier, and make a difference in the lives of children who need help.”

Gov. Fallin Statement on Sequestration

OKLAHOMA CITY – Oklahoma Governor Mary Fallin today released the following statement regarding sequestration and the looming federal budget cuts to the military and government agencies:

“Oklahoma agencies have had months to prepare for a reduction in federal funds. While it is still unclear how many dollars each state agency will lose, we do not expect an immediate loss in state services. Months ago, I asked my cabinet secretaries and state agency directors to plan ahead for sequestration. We believe the state is well-prepared.

“With that said, it is clear the sequester is creating a chaotic and uncertain environment for businesses looking to invest, state governments tasked with crafting budgets, and those who receive federal benefits or who work for or contract with the government. That uncertainty is bad for the economy and is destroying jobs. Furthermore, the large and seemingly haphazard cuts to military spending reduce the effectiveness of our armed services and hurt the economies of states with large military presences, such as Oklahoma.

“President Obama has said he doesn’t like the sequester, but he has not laid out a viable alternative.  It is now up to him to work with Congress and deliver solutions. That starts with getting serious about spending cuts.

“In Oklahoma, we faced a budget shortfall of over $500 million in 2011 – nearly ten percent of our total budget. Like other states, we made tough choices, cut spending and worked to make state government more efficient and effective. We balanced our budget. There is no reason the federal government cannot do the same.”

State Revenue Certified for 2014 Fiscal Year

OKLAHOMA CITY – Revenue figures approved Tuesday by the state Board of Equalization showed an additional $34 million available for appropriation for Fiscal Year 2014 than was used in Gov. Mary Fallin’s executive budget proposal.

In all, an extra $212.6 million in growth revenue is available for Fiscal Year 2014 appropriations than was appropriated for FY 2013, the current fiscal year ending June 30, according to figures approved by the seven-member board, which is chaired by the governor. The board approved revenues for appropriation topping $7 billion for FY 2014.

Secretary of Finance and Revenue Preston L. Doerflinger issued the following statement:

“Three years of impressive economic expansion have Oklahoma back at pre-recession revenue strength. That growth has generated $34 million more for appropriations than we used to build the governor’s proposed budget. Our priority now is to begin immediate work with the Legislature to set an honest state budget that uses these growth revenues to reduce income taxes and boost funding for core services like education and other priorities. Today’s picture is bright, but the looming federal sequester is anything but. There is no doubt it could hit our defense sector hard. Oklahoma’s best path forward is to continue emphasizing fiscal restraint and enacting policies that spur the type of impressive economic expansion enjoyed for these past three years.”

Doerflinger is director of the Office of Management and Enterprise Services, which prepares the revenue estimates the Board of Equalization certifies each year. Highlights of Tuesday’s revenue certification include:

·         The General Revenue Fund will have a surplus of $83.3 million to deposit in the Rainy Day Fund in July, increasing the amount in the state savings account to $660.8 million, an all-time record.

·         Oklahoma’s steady economic growth since the Great Recession has led to total state revenues increasing by 2.6 percent each of the two past fiscal years and projected to rise 3.1 percent next year.

·         Personal income tax collections are projected to generate $2.1 billion for fiscal year 2014, which is $155.2 million more than fiscal year 2013 – a 7.8 percent increase.

·         Sales tax collections are projected to generate $2 billion for fiscal year 2014, which is $106.5 million more than fiscal year 2013 – a 5.5 percent increase.

·         Economic snapshot: Oklahoma has added more than 62,000 jobs in the past two years, resulting in the nation’s sixth-lowest unemployment rate, 5.1 percent, and second-strongest manufacturing job growth rate.

Voters May be Asked to Further Limit State Spending

OKLAHOMA CITY – State Rep. Elise Hall is concerned that without a more appropriate spending limitation, Oklahoma’s public sector could grow too fast in “boom” years.

House Joint Resolution 1011 would ask voters to approve a constitutional limit on appropriations that would lower the current limit of a 12 percent increase on the previous year’s appropriations when adjusted for inflation.

The legislation has been approved 14-9 by the House Appropriations and Budget Committee.

“When lawmakers make large appropriations in revenue growth years, this leads to drastic cuts in revenue shortfall years, as we’ve witnessed firsthand in the last few years,” Hall, R-Oklahoma City, said. “I think the current spending limitation that restricts the annual growth of the state budget to 12 percent should be lowered to 7 percent to further restrict public sector growth.”

State government growth has regularly exceeded private sector growth in Oklahoma since voters approved a 1985 spending limitation, according to Oklahoma Council of Public Affairs fiscal analyst Jonathan Small. State employment grew by 8.57 percent from 2000 to 2010 while private sector employment grew by only 6.07 percent. Government expenditures have grown 72.20 percent from 2001 to 2010 while private earnings have grown by only 40.71 percent.

“Oklahomans overwhelmingly support the idea of shrinking state government, so I think it is especially appropriate to limit growth,” Hall said. “It is better to save surplus revenue for shortfall periods than to overcommit the state to expenditures that it cannot sustain.”

House Committee to Examine Governor’s Plan for Education Savings

Rep. Jason Murphey
R-Guthrie

OKLAHOMA CITY – Members of the Oklahoma House of Representatives members are set to learn the details of Governor Fallin’s “Open Range” plan.

Fallin’s open range proposal seeks to place more money in common education classrooms by allowing school districts to take advantage of the savings from the state’s recent consolidation of information technology resources. The IT consolidation is already set to save Oklahoma state agencies approximately 40 million each year.

The House Government Modernization committee will receive testimony about the proposal from state CIO Alex Pettit during its 10:30 a.m. Thursday committee meeting in Room 412C of the Oklahoma State Capitol. The public is invited to attend.

Gov. Fallin Submits Executive Budget

To the Citizens of the Great State of Oklahoma and the Oklahoma Legislature:

It is my pleasure to submit for your consideration the FY-2014 executive budget. The plan I have put forward is a responsible, transparent, gimmick-free budget that accomplishes the goals of reducing the tax burden on Oklahoma citizens and holding the line on spending while also improving core government services.

The tax reduction proposal submitted within this budget provides immediate tax relief for hardworking Oklahomans while setting the state on a course to continue reducing the personal income tax in the future. Allowing Oklahomans to keep more of their hard earned money stimulates job growth and makes Oklahoma a more attractive place to locate or expand businesses. This year’s tax cut proposal is a responsible, simple policy that benefits hardworking Oklahomans while still allowing for adequate funding of state services.

Reducing taxes in FY-2014 is only part of the important task that lies before us. My budget proposes strategic investments in Oklahoma’s mental health, substance abuse, child welfare and health systems. By addressing mental illness and addiction, securing safe homes for at-risk children, and providing quality health care for those in need, Oklahoma can ensure all its citizens are cared for in ways reflective of our compassionate spirit.

Continuing to improve our educational outcomes in order to build a more highly skilled, better educated workforce will be essential to maintaining Oklahoma’s impressive economic growth in years to come. That is why this budget includes support for critical education reforms that have been signed into law in recent years, as well as funding to satisfy the state’s commitment to provide health benefits for education employees.

The state’s financial commitment to its transportation infrastructure has increased dramatically in recent years, and this budget continues that trend by ensuring that all transportation funds are used for their intended purpose. Also included in this budget are proposals to address other infrastructure needs that, unfortunately, have been neglected in past years. This includes a $10 million supplemental appropriation to begin immediate repairs to the crumbling State Capitol. We must reach a point where the stewardship we show for the People’s House mirrors our commitment to all infrastructure across Oklahoma.

I ask the Legislature and the Citizens of Oklahoma to come together in support of this agenda. If we do so, I am certain we can continue to emerge as a stronger, healthier state. 

Sincerly,

Mary Fallin

The Executive Budget

The Historical Budget Book  

Agency Performance and Budget Hearings Scheduled

OKLAHOMA CITY – The House will begin holding performance and budget request hearings for state agencies this week in preparation for the upcoming legislative session, House Appropriations and Budget Committee Chair Scott Martin announced.

The hearings will be held over a two-week period at the state Capitol beginning on Tuesday, January 22.

Rep. Martin said the hearings are an important process for members to review how the agencies performed during the most recent fiscal year. The meetings give the agencies an opportunity to explain to the committee how the prior year’s appropriation was spent, whether new programs were added or old ones discarded and to present their budget request for the next fiscal year.

“I’m glad we were able to reinstitute these critical hearings for the upcoming session,” said Martin, R-Norman. “It’s our duty to provide oversight and evaluate agency budgets, and these hearings will give my House colleagues the chance to really dig deep into agency spending and thoughtfully consider any new request before session begins.

“It’s important to the taxpayers that every penny spent is justified and used wisely. These are taxpayer dollars we will be appropriating, and it’s incumbent on us to be good stewards of them. I’m confident these meetings will be beneficial for the legislature, just as it will be for our state agencies. While the budget is considered and passed during a short four-month timeframe, our vigilance over it never ends. I hope my fellow citizens feel free to attend these public meetings and listen to the proceedings.”

The Performance and Budget hearing schedule is as follows:

• A&B Joint (with Senate) Human Services Subcommittee, Tuesday, January 22 at 8:30 a.m.
• A&B Joint (with Senate) Judiciary Subcommittee, Thursday, January 24 at 9:00 a.m.
• A&B Joint (with Senate) Natural Resources Subcommittee, Thursday, January 24 at 10:30 a.m.
• A&B Public Health Subcommittee, Monday, January 28 at 8:30 a.m.
• A&B Joint (with Senate) Career Technology Subcommittee, Monday, January 28 at 9:30 a.m.
• A&B Joint (with Senate) Higher Education Subcommittee, Monday, January 28 at 2:00 p.m.
• A&B Non-Appropriated Subcommittee, Tuesday, January 29 at 9:00 a.m.
• A&B Joint (with Senate) Common Education Subcommittee, Tuesday, January 29 at 9:30 a.m.
• A&B Transportation Subcommittee, Tuesday, January 29 at 10:30 a.m.
• A&B Public Safety Subcommittee, Wednesday, January 30 at 8:30 a.m.
• A&B General Government Subcommittee, Thursday, January 31 at 9:00 a.m.

All meeting notices with locations and agendas have been posted to the House website.

The 54th Legislature will convene on Monday, February 4.

Commentary: Outdated Education Funding Systems Need Work

State Capitol -- Thank you Superintendent Barresi, Board members and guests.

That there is a disconnect between public school administrators and legislators about school funding isn’t news to anyone -- but there’s hope for a solution.

The disconnect is caused by a lack of detailed information available to lawmakers during the legislative budget process each year.

I’ll share a few observations with you this morning.

1. Data

As I’ve studied mounds of school financial data, many local school officials have cautioned me that the data might not be accurate because some school districts don’t always do a consistent job when reporting data.

I have found instances of this.

2. Carryover

Questions about carry-over funds have been around for years, and have been answered by generalized explanations that fail to account for the large number of diverse school districts.

For instance, districts do not receive state aid for the first month of the fiscal year and must use carry-over to pay bills during this time. But this does not begin to explain carry-over balances currently held by schools.

I’ll use Luther and Talihina Schools for an example -- two districts with very similar student enrollment, revenue, expenses and carry-over fund balances. Districts don’t begin to receive the bulk of their local funding until January -- six months into the fiscal year. Luther receives nearly 70 percent of its revenue from local sources compared to Talihina at only 10 percent. But both districts carry-over is virtually the same when it would appear that their cash flow needs are very different.

We currently have a one-size-fits-all set of rules on carryover funds but no two school districts cash flow needs are the same.

3. Formula

Through the funding formula, I can see relatively detailed information about the revenue each district generates for operations. I'm not able to see a corresponding level of detail about how that money is spent.

For example, the formula provides a weight or multiplier of .25 for each economically-disadvantaged student to cover additional support costs. Districts cite the increased number of economically-disadvantaged students when requesting additional funds, but I can’t see what districts’ actual costs are for these students.

What is the level of disconnect between the funding formula weights for these kids and what school districts actually spend educating them?

4. Enrollment

The formula also creates a disparity between school districts with increasing and decreasing student enrollment. School districts with declining enrollment can count their highest enrollment year for full funding for two years. But increased funding lags six months or more in school districts with increasing enrollment. The formula does not shift money to meet this need in a timely manner.

House Bill 1017 is more than 20 years old. The funding formula was passed more than 30 years ago. There are scores of separate funding streams for schools. Each of these laws is based on education staffing models, student demographics and economic factors that have changed significantly in the past 20 to 30 years.

It is time to take a fresh look at these issues and to provide the legislature and the public with the information it needs and deserves. This will help ensure that students get the maximum benefit from every education dollar spent.

(Above are the prepared notes for my public comments I presented to the State Board of Education and State Supt. Janet Barresi during the October 25, 2012, State Board meeting. This statement is only an overview and does not reflect all of my research and opinions on this topic. I will have more to say about education funding and will be providing more details as I continue my investigation of education funding and finance during the next few months.)

State Education Board Approves $289 Million Budget Increase Request

That Includes Funds for Reforms, Teacher Pay Increases

OKLAHOMA CITY (Oct. 8, 2012) – Oklahoma State Board of Education members on Thursday approved a $289 million Fiscal Year 2014 budget increase request for public schools to be made to the State Legislature late this year as lawmakers prepare for the 2013 Legislative Session. 

The budget includes dollars for statewide implementation of reforms, as well as funds for teachers and school personnel. 

"This request represents a substantial increase," State Superintendent Janet Barresi said, "but we will be be basing the increase in funds on performance. We're promising a return on investment to Oklahoma taxpayers."

Barresi said funds for schools will be tied to detailed performance metrics in areas such as gains in core subjects such as reading and math, results of a statewide Teacher and Leader Effectiveness system, and gains in closing the state's achievement gaps for minority students.

Additionally, with an increase in state aid to public schools, the state would anticipate that local superintendents would use a portion of the new dollars to boost teacher salaries. While the manner and method of teacher pay increases would be left to local decision making, Barresi said it was essential that budget talks this year include an emphasis on better teacher pay.

"The increased funds we're asking for focus on better pay for teachers and on results in our schools. It's time for a new conversation about our state's education spending that focuses on targeted strategies and clear-cut results," Barresi said. 

Barresi said the new budget request would also be tied directly to the state's C3 Plan to have all students graduating from an Oklahoma high school ready for college, career and citizenship by the year 2020. The C3 Plan has seven primary goals: an effective teacher in every classroom, and an effective leader in every school; an increase in the number of students in the STEM (science, technology, engineering and math) pipeline; and stair step readiness goals in kindergarten, fourth grade, sixth grade, high school and upon graduation.

Board members reviewed preliminary numbers in a special meeting Oct. 8 and voted to approve the budget Thursday. 

The budget includes a $234 million increase in state aid to public schools — from about $1.8 billion in FY 2013 to a possible increase of more than $2 billion. 

The budget request also asks for nearly $46 million more in the state's public school activities fund — targeting key areas for reform implementation such as third grade reading readiness, Advanced Placement teacher training, ACE (Achieving Classroom Excellence) end-of-instruction requirements remediation, additional money for the state's new Teacher and Leader Effectiveness System, and funds for the state's student information system to provide more precise information for teachers in the classroom. 

The budget increase also will go toward a competitive grants pool for schools to spur innovations and reforms throughout the state.

House Studies State Employee Compensation

OKLAHOMA CITY – State Rep. Leslie Osborn said conservative policy should include fair compensation for a quality state employee workforce.

“A well-compensated workforce that is efficient is a reasonable idea for a fiscal conservative to look at,” said Osborn, R-Mustang. “As lawmakers, we are responsible for the recruitment and retention of the highest performing members of the workforce to deliver core state services.”

The Oklahoma Public Employees Association (OPEA) worked with Rep. Osborn in requesting yesterday’s study. According to the OPEA website, “House and Senate leadership as well as the governor’s office all voiced support for this study.”

Oklahoma Secretary of Finance and Revenue Preston Doerflinger said he opposes across-the-board pay increases and longevity-based pay, but supports an appropriate level of compensation based on performance appraisals, and believes it is necessary to recruit high performers.

Doerflinger said lawmakers should strive to pay state employees 75-85 percent of the private sector market value of their position to be competitive.

The State has consistently lost ground on competitive compensation, according to Lucinda Meltabarger, state administrator of human capital management. As of fiscal year 2011, classified state employees are paid about 19.17 percent below market value.

Meltabarger said not all positions are paid equally in relation to the market. For example, IT professionals are paid about $20,000 more at certain local oil companies than at the state, she said.

An ideal turnover rate might be about 5 percent, Meltabarger said. According to Ron Wilson, state director of talent management, the fiscal year 2011 voluntary turnover rate for classified state employees was approximately 10 percent. The state loses $68 million annually due to turnover, he said.

Meltabarger recommended a more thorough study of state benefits to get a sense of their true value to potential employees rather than their cost to the state.

Oklahoma Department of Transportation Deputy Director and Chief Financial Officer Mike Patterson said it is difficult to recruit for the agency’s positions requiring the highest level of training or education. Highly trained agency employees are generally paid between 25-40 percent below the market value of their positions.

Oklahoma Treasurer Ken Miller said his office has trouble recruiting employees. He said as conservative lawmakers continue to reduce the size of state government, some of the savings should be used to recruit quality employees.

Jonathan Small, policy analyst for the Oklahoma Council of Public Affairs, said the state’s retirement system is outdated and encourages early retirement. Small recommended that the state move to a defined contribution plan for all new state employees. Another factor that affects turnover is employment security, especially with unclassified positions.

“I definitely agree that there are a number of jobs and classifications that need pay raises,” said Small. “However, we need to understand that we will never be able to match private sector pay. I think we should try to get close as we restructure our benefit design.”

Small recommended statutory changes that would increase the flexibility agency heads have to provide compensation on a per job, per employee basis; allow for one-time bonuses; modernize the state benefit structure; and remove onerous barriers to compensation systems based on performance.

Small specifically highlighted the need for competitive pay and benefits for corrections employees.

OPEA Executive Director Sterling Zearley noted that entry-level child welfare specialists are paid on average at 23 percent below the market and that corrections officers begin at $11.83 per hour while an oil field worker is generally paid $25 per hour.

Zearley said he believes state employee pay should be 90 percent of market value, partially because benefits have been gradually reduced. He said he agrees with proposals to modernize benefits and move towards a performance-based system.

State Board of Education Hears Preliminary Budget Request

Potential $289 Million Increase Would Include Funds for Reforms, Teacher Pay Increases

OKLAHOMA CITY (Oct. 8, 2012) – Oklahoma State Board of Education members on Monday reviewed preliminary numbers for a possible $289 million Fiscal Year 2014 budget increase request for public schools to be made to the State Legislature as lawmakers draw closer to the 2013 session. The Board will vote on a budget request at its next regular meeting on October 25.

The preliminary numbers board members reviewed Monday include dollars for statewide implementation of reforms, as well as funds for teachers and school personnel.

State Supt. Janet Barresi said the new budget request, if approved, would represent a shift toward demonstrating a return on investment to taxpayers by tying state funds for schools to detailed performance metrics in areas such as gains in core subjects such as reading and math, results of a statewide Teacher and Leader Effectiveness system, and gains in closing the state's achievement gaps for minority students.

Additionally, with an increase in state aid to public schools, the state would anticipate that local superintendents would use a portion of the new dollars to boost teacher salaries. While the manner and method of teacher pay increases would be left to local decision making, Barresi said it was essential that budget talks this year include an emphasis on better teacher pay.

"The increased funds we're asking for focus on better pay for teachers and on results in our schools. It's time for a new conversation about our state's education spending that focuses on targeted strategies and clear-cut results," said Barresi. "While the State Board will likely ask for more dollars, we'll do so within a responsible and productive framework. This budget request represents increases for programs and support for reforms, but we should tie those increases to accountability. In much the same way that our state's transportation department has been able to show real results to taxpayers by improving our roads and bridges infrastructure and investing in hard assets, we need to begin showing an educational end product that demonstrates success."

Barresi said the new budget request would also be tied directly to the state's C3 Plan to have all students graduating from an Oklahoma high school ready for college, career and citizenship by the year 2020. The C3 Plan has seven primary goals: an effective teacher in every classroom, and an effective leader in every school; an increase in the number of students in the STEM (science, technology, engineering and math) pipeline; and stair step readiness goals in kindergarten, fourth grade, sixth grade, high school and upon graduation.

Board members reviewed preliminary numbers that include a $234 million increase in state aid to public schools — from about $1.8 billion in FY 2013 to a possible increase of more than $2 billion.

The budget request would also ask for nearly $46 million more in the state's public school activities fund — targeting key areas for reform implementation such as third grade reading readiness, Advanced Placement teacher training, ACE (Achieving Classroom Excellence) end-of-instruction requirements remediation, additional money for the state's new Teacher and Leader Effectiveness System, and funds for the state's student information system to provide more precise information for teachers in the classroom.

The budget increase also would go toward a competitive grants pool for schools to spur innovations and reforms throughout the state.

Higher Ed needs ... you guessed it ... more money

Oklahoma's top higher education official said he's optimistic about the state's college completion goals — but only if lawmakers find money to get the job done.

Read more: http://newsok.com/more-funding-is-needed-to-reach-college-completion-goals-higher-education-official-says/article/3709209#ixzz26LwghJ3A

Shannon: State Must Prepare for Federal Budget Cuts

OKLAHOMA CITY – State Rep. T.W. Shannon said last week he will be conducting a legislative study to examine contingency plans for scenarios in which state agencies lose federal funding due to potential federal budget cuts.

“We can no longer wait for the federal government to lead,” said Shannon, R-Lawton. “We have to be ready to self-sustain core services and deal with potential cuts. State agencies are addicted to federal spending. We need to tailor agency spending to ensure core government services remain unaffected. If we are to have major reform in this country, it will have to come from the states.”

Shannon’s goal will be to require every state agency to develop a contingency plan for when cuts occur, he said.

“When the federal government is spending in such an unsustainable way, it is likely that our funding will cease to exist at current levels,” said Shannon. “The federal government is now borrowing $1 of every $2 it spends. Our national deficit reached $16 trillion this year. It is inevitable that states will experience drastic cuts at some future date. The spending level is not sustainable.”

Shannon said he will release more details of the study, which will take place in October, at a future date.

Common Education: Administrative costs under fire

By Stacy Martin at CapitolBeatOK.com (Published: 04-Sep-2012) 

A hard press for transparency has led Oklahoma’s first Republican state education superintendent to post more detailed financial data on her agency’s web site.

The latest shocker: Oklahoma’s bloated education system is partly inflated by the $184 million in salaries alone that taxpayers are paying about 2,700 school district administrators.

Pressures for transparency from Oklahoma Watchdog, CapitolBeatOK and lawmakers propelled agency reporting into the open. In evaluations, the website Sunshine Review gives the State Department of Education and other Oklahoma state agencies a “B” for transparency.

State Superintendent Janet Barresi posted district administrators’ salaries prominently on her website so interested taxpayers could easily locate them.

The cost of ranking administrative personnel – full-time, not full-time equivalent, and not including support staff – with benefits excluded:

• 499 superintendents, collectively earn: $44.1 million

• 82 assistant superintendents, collectively earn: $7.3 million

• 1,504 principals earn a combined: $97.3 million

• 599 assistant vice principals collectively earned: $35.1 million

• Total district leadership salaries: $184 million 

Baressi would not say what she thought of the expense, leaving that to website visitors.

State Superintendent Janet Barresi

“I’ve said from the beginning that I am against forced consolidation of school districts,” she said in a statement to CapitolBeatOK. “No matter what I think about this issue, this needs to be a decision that is driven by local teachers, parents and individual school districts that are making decisions for their local areas.

“My focus is on reducing administration costs by building in efficiencies wherever possible to get the most money into the classrooms as we can. We do this by offering purchasing co-ops where possible, such as for instruction or for transportation, so that we achieve economies of scale.

“We can’t force a one-size-fits-all solution,” she said. “In some cases, a leader’s salary is indicative of multiple hats that person is wearing, such as serving as superintendent as well as principal, bus driver, classroom teacher.”

Barresi was elected as a reformer.

Voters, particularly conservatives, were anxious to contain runaway education costs they’d been bloodied with for so long under decades of Democratic leadership.

During those years, state education appropriations spiraled to one-third and often more of the total state budget.

The new superintendent has shaken things up, redirecting some funding to preschool education, virtual schools and reducing state aid to districts losing students, who are the primary driver of district funding. The latter is what state law directs her to do.

More recently, she worked with seven superintendents to participate in a voluntary, shared-resource program, which will cut superintendent costs for six districts too small for full-time leadership. The $8-million voluntary consolidation fund was put into place by the Legislature several years ago.

As one might expect, Barresi’s approach has won mixed reviews. But she plows on, focusing on the most difficult task of all – trimming overhead.

“Consolidation – that’s a dirty word to us,” said a Mountain View-Gotebo Superintendent Andy Evans. “Nah, I’m just kidding.”

Historically, the most difficult hurdles have been legislators, and even constituents.

They, plus the National Education Association labor union’s state affiliate — the Oklahoma Education Association — angrily call lawmakers whenever school consolidation talk stirs, despite the obvious tax savings.

Last year, legislators successfully repealed the “trial de novo” law. It had given dismissed teachers automatic recourse to district courts.

The repeal may reduce school district costs when boards of education try to fire underperforming educators.

It was an acknowledged blow to the OEA, but the group’s general counsel threatened to make school boards miserable if they try to fire an OEA member. The OEA has not responded to a request for comment on the new data.

Contact Stacy Martin:  Stacy@oklahomawatchdog.org