House Votes to Provide State Employee Performance Incentive

OKLAHOMA CITY – Legislation that would make state jobs more competitive with the market was approved by the Oklahoma House of Representatives.

“The intent of the legislation is to address understaffing due to low pay in areas such as corrections, public safety and child welfare,” said Osborn, R-Mustang. “My legislation creates a one-time bonus of $1,000 as an incentive to help retain critical employees such as those who man our corrections facilities and haven’t received a raise since 2006, but it’s the study this bill authorizes that is really going to help create a market-based system that will address the need to make salaries more competitive.”

House Bill 1717, by state Rep. Leslie Osborn, would authorize a $1,000 performance-based bonus to state employees and initiate a study of state employee compensation for fiscal years 2013-2014. 

According to the Oklahoma Public Employees Association, 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.

“The state can’t keep jails adequately staffed at the current level of pay,” said Osborn. “We have to start making those salaries more competitive with the other job opportunities that are available for potential employees.”

House Bill 1717 was approved by a vote of 94-4 and now advances to the state Senate.

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.

Nelson Comments on Foster Parent Rate, Child Welfare Worker Pay Increases

The Oklahoma Department of Human Services announced today it is increasing reimbursement rates for foster families and pay for child welfare workers over the next five years. The increases are part of the Pinnacle Plan for improving child welfare services. 

State Rep. Jason Nelson, R-Oklahoma City, supports the increases in reimbursement rates and worker pay.

"We ask for a tremendous amount of sacrifice from foster parents and, frankly, from the workers on the front-line. They certainly deserve the increase. But great foster parents and great child welfare workers will tell you that money alone won’t lead to the improvements in the Department that are still desperately needed. Changing the culture at DHS is the kind of key reform needed that money can’t buy.

"I will continue to work with Governor Fallin, the Department and others to make sure real improvements happen at DHS - particularly on the worker side. I have visited recently with Interim Director Preston Doerflinger and Commission Chairman Wes Lane about the need to professionalize the frontline workforce so we can attract enough quality applicants to these key positions. We also need to better train and support workers and link worker promotions and pay to demonstrated skill levels. These types of improvements in personnel policy will, in turn, improve the experience and outcomes for children in state custody and for the foster parents who open their hearts and homes to the these children.

“Our child welfare system will never be any better than the workers on the front-line and the foster families that open their homes. It’s great to see these changes, and others, finally moving forward but it’s important to remember that it will take time to see the full positive results from these reforms and that no single action is enough.”

Since October, Nelson has served as chairman of a working group in the House of Representatives tasked with performing a thorough review of the Department of Human Services. The working group made several sweeping recommendations during the 2012 Legislative Session that were passed and signed by Governor Fallin. 

One of the recommendations by the working group resulted in State Question 765 being submitted to voters this November. SQ 765, if approved by the voters, would abolish the constitutional DHS commission.  

Speaker Outlines New DHS Strategy, Rep. Nelson to Lead Effort

Speaker Kris Steele
R-Shawnee

OKLAHOMA CITY – House Speaker Kris Steele and a bipartisan group of five representatives today unveiled the first steps of a strategy to reform the Oklahoma Department of Human Services.

The House’s aggressive, four-pronged strategy is designed to improve DHS through significant study of and potential reforms to governance structure, agency structure, personnel policy and resource allocation. The plan is 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.

“Today we begin working together to find a better way,” said Steele, R-Shawnee. “The Legislature has made incremental DHS reforms over the years, but more improvements are needed. The comprehensive reform we seek is only achievable if we all truly cooperate and work toward a common goal. It won’t be easy, but what we’re saying today is we’re going to buckle down and get there together.”

Steele has asked a bipartisan group of five representatives to engage in a strategic review of DHS to develop policy to consider next legislative session.

Governor Mary Fallin released a statement today after the announcement.

“When I appointed Brad Yarbrough and Wes Lane to the DHS commission, I asked them to pursue reforms that would allow the agency to better protect our children and increase accountability, transparency and efficiency,” Fallin said. “The goals outlined today by Speaker Steele, a bipartisan group of legislators, and agency officials is the logical next step in that process.”

Leading the group will be Rep. Jason Nelson, R-Oklahoma City, who has spent this summer and past years reviewing DHS to look for potential reforms. Other members of the group are Reps. Pam Peterson, R-Tulsa, Pat Ownbey, R-Ardmore, Rebecca Hamilton, D-Oklahoma City, and Wade Rousselot, D-Okay. All members of the group have certain areas of expertise in human services.

“Make no mistake: This is no typical legislative committee. There will be no sitting in hearings making motions and watching PowerPoints all day,” Nelson said. “DHS faces serious challenges that necessitate us getting out of the Capitol and into the field.”

The group will operate in a unique manner, with much of its work occurring in small meetings with DHS workers in the field, where the group will observe how policies are implemented and analyze organizational strengths and needs. The group will also meet with other agency officials and leaders, DHS commissioners and other stakeholders.

“The Legislature already has a wealth of knowledge about this agency, so there is no need to duplicate what we’ve already done. Instead, we’re taking a somewhat outside-the-box approach,” Nelson said. “I’m confident this is exactly the type of approach needed in order to achieve real reforms that ensure DHS delivers the results Oklahomans expect. Our sense of urgency could not be any higher.”

The group’s meetings with workers will be private to allow for candid conversation and disclosure of sensitive information. The group will also engage in an in-depth study of the agency’s structure and resource allocation to determine if better results could be achieved through reorganization and reprioritizing resources. A public report on the group’s findings will be presented during a public meeting sometime next year.

Steele said DHS reform will be a policy priority in the House next session.

“My expectation is one I believe most Oklahomans share, and that is to do whatever it takes to produce serious improvement at DHS,” Steele said.

Officials at DHS – the largest agency in state government – pledged to give the group the access it needs to the agency in order to do its work.

“We thank Speaker Steele and the House for their willingness to work together to find solutions and look forward to assisting in every way possible,” DHS Director Howard Hendrick said. “This process will do a lot of good and I’m glad to be part of it.”

DHS commissioners also expressed support for the group’s plans.

“We are fully committed to building a better DHS for the 21^st century and appreciate the opportunity to collaborate with Speaker Steele and all legislators in this process,” said incoming Oklahoma Commission for Human Services Chairman Brad Yarbrough. “It won’t be easy, but the best work never is. We stand ready for the challenge.”

The Oklahoma Public Employees Association also expressed support for the House plan.

“We appreciate these representatives for their willingness to get out of the Capitol to spend time with the workers who are on the ground protecting Oklahoma’s children,” said OPEA Executive Director Sterling Zearley. “The front line employees’ unique perspective and their experience will be valuable in this critical process.”

Rep. Ron Peters, chairman of the House Appropriations and Budget Subcommittee on Human Services, said he is appreciative of the work the group plans to do.

“I am thrilled to see my colleagues and DHS working together on solutions. It’s the right thing to do and I commend them for it,” said Peters, R-Tulsa. “I stand ready to assist in any way.”

“As a state, we must all work together to prevent the abuse and neglect of our most vulnerable citizens,” Fallin said. That’s especially true when it comes to child abuse and the heart-breaking deaths of children in state custody. We have, unfortunately, seen too many instances of both recently, and the current results are unacceptable. Today’s announcement puts us on a path to reform our systems of child welfare and better protect vulnerable Oklahomans.”

UPDATED ADVISORY: Speaker DHS announcement WEDNESDAY

WHO: House Speaker Kris Steele, R-Shawnee, House members who are reviewing the state Department of Human Services, DHS leaders, incoming DHS Commission Chairman Brad Yarbrough, and an Oklahoma Public Employees Association representative.

WHAT: Press conference to discuss strategies the House will use to improve DHS.

WHEN: 11 a.m. Wednesday, Oct. 19

WHERE: Governor's Blue Room, 2nd Floor Broadcast Press Room, Room 432-B, State Capitol

Speaker Steele and other House members will unveil the House’s strategy to produce better outcomes for those who come into contact with DHS, particularly children in state custody. The representatives will unveil an aggressive, four-pronged strategy to improve DHS through significant reforms to governance structure, agency structure, personnel policy and resource allocation. Steele will outline plans to work with DHS officials, commissioners and others in effort to improve the agency and increase accountability.


STATEMENT: Speaker comments on Ahonesty Hicks

According to a report by the Oklahoma Commission on Children and Youth, 17-month-old Ahonesty Hicks died May 3 from abuse. In the weeks preceding Ahonesty’s death, DHS officials decided against removing Ahonesty from her mother’s custody despite knowing her mother had recently tested positive for PCP and been involved in a domestic dispute with her boyfriend. Ahonesty’s mother’s boyfriend has been charged with Ahonesty’s murder.

“Ahonesty’s tragic and untimely death is another indication of the need to reform the policy, infrastructure and delivery of services at DHS. These outcomes must end. The House has been and will remain fully engaged in working with DHS officials at every level of the agency to identify better methods to protect our children and all our vulnerable citizens.” – House Speaker Kris Steele, R-Shawnee

Supreme Court Rules In Favor Of OPEA On Birthdate Privacy, Prevents Records Harvesting

The Oklahoma Supreme Court released a ruling Tuesday affirming the position of the Oklahoma Public Employees Association that state employee birth dates should remain confidential.

The issue came to the forefront when reporters made a batch request of all state employee names and birth dates from the Oklahoma Office of Personnel Management in February of 2010. OPEA filed an injunction on behalf of state employees.

State Rep. Randy Terrill said today’s Oklahoma Supreme Court ruling is a victory for the personal privacy and safety of Oklahoma citizens who have state jobs.

The Oklahoma Supreme Court ruled that certain information related to public employees, particularly birth dates and personal identification numbers, should be released only in limited circumstances. The court ruled that a balancing test should be applied that weighs the public interest against the privacy and safety concerns of government employees.

Terrill said the decision clearly prevents the future blanket release of all state employees’ personal data.

In 2010, Terrill authored legislation that would have prevented the blanket release of state employees’ personal information. The bill was supported by the Department of Public Safety, Oklahoma State Troopers Association, Oklahoma State Bureau of Investigation, Oklahoma Bureau of Narcotics, Office of the Oklahoma State Fire Marshal, ABLE Commission, District Attorneys’ Council, CLEET, Oklahoma Office of Homeland Security, the Office of the Medical Examiner, Oklahoma Department of Corrections, and the Oklahoma Public Employees Association.

In addition to concerns about identity theft and fraud, supporters cited public safety concerns, warning that criminals could use employees’ personal data to identity the homes and family members of law enforcement officials.

The Court concluded:

Openness in government is essential to the functioning of a democracy. The greatest threat to privacy comes from government in secret. In order to verify accountability, the public must have access to government files. Such access permits checks against the arbitrary exercise of official power and secrecy in the political process. It gives private citizens the ability to monitor the manner in which public officers discharge their public duties and ensures that such actions are carried on in an honest, efficient, faithful, and competent manner.

The purpose of openness in government is not fostered by disclosure of information about private citizens that is accumulated in various government files but reveals little or nothing about an agency's own conduct. Rather, governmental agencies and the courts have a special obligation to protect the public's interest in individual privacy by acknowledging that public records are being harvested for personal information about individuals, contributing to a surge in identity theft, consumer profiling, and the development of a stratified society where individuals are pigeonholed according to the electronic trail they leave of transactions that disclose personal details.

[In enacting recent legislation], the Oklahoma legislature sought to construct an exemption which would require a balancing of an individual's right of privacy against the preservation of the basic purpose of Oklahoma's Open Records Act. The device adopted to achieve that balance was the limited exemption where privacy was threatened for the clearly unwarranted invasion of personal privacy.

We determine that the legislative language utilized in [the recently passed legislation] indicates the legislature intended to provide a non-exclusive list of examples of information, release of which may amount to a clearly unwarranted invasion of State employees' personal privacy and that where a claim is made that disclosure would constitute a clearly unwarranted invasion of personal privacy within the meaning of the statute, application of a case-by-case balancing test is utilized to determine whether personal information is subject to release. We determine that when the balancing test is applied to the facts presented, where significant privacy interests are at stake while the public's interest either in employee birth dates or employee identification numbers is minimal, release of birth dates and employee identification numbers of State employees “would constitute a clearly unwarranted invasion of personal privacy” [under the recently enacted state law].

Oklahoma Should ‘Fast Forward’ Workers Comp System

OKLAHOMA CITY – Oklahoma has an opportunity to “fast forward” how the state provides workers’ compensation benefits, state Rep. Lewis Moore said today.

“We have a provision in place now that allows for an exciting option in how we currently offer coverage for on the job injuries and sickness – 24/7 coverage,” Moore, R-Edmond, said. “It combines the best of both group health and workers’ compensation coverage. Currently, group health insurance covers you when you’re asleep and not at work, or about 16 hours a day. Workers’ comp covers you when you’re at work.

As much as both types of coverage cost, we can’t help but be able to save a great deal of money, give our businesses an opportunity to be much more competitive, reduce the animosity and adversarial relationship promoted by the current system and help more people become insured. By reducing the cost and streamlining the benefits, we will save employees and employers a great deal of time and money.”

Moore has filed House Bill 2886 to make it possible for the Oklahoma State Employees Benefits Council and the Oklahoma State and Education Employees Group Insurance Board to begin a pilot program that state agencies and employers can participate in to take advantage of the 24/7 provision in Title 85.

Gov. Henry signs order prohibiting state employees from ‘texting’ while driving state vehicles

January 21, 2010 --Oklahoma City -- In an effort to ensure safer roads and highways, Gov. Brad Henry today signed an executive order barring state employees from “text messaging” while driving state vehicles. The Governor said he wants the directive to serve as a model for all Oklahoma motorists.

The end of the downturn is not yet in sight

OKLAHOMA CITY – State revenue collections have fallen below prior year collections and the official estimate every month for the past year, and the end of the downturn is not yet in sight, State Treasurer Scott Meacham announced today.

December revenue collections are sufficient to fund allocations to state agencies for the month at the previously announced 10 percent reduction from appropriated levels.

“We were hopeful that revenues might begin to improve slightly; instead they continued their downward slide,” he said.

In August, State Finance Director Michael Clingman ordered monthly allocations to state agencies reduced by five percent. That reduced level of funding for state government continued through November. In December and this month, Clingman ordered the allocation cut doubled to 10 percent after Governor Henry and legislative leaders agreed to the increased reductions.

State Employee Health Insurance Working Group Releases Report

The Oklahoma State Employee Health Insurance Review Working Group recently released a study aimed at reducing health insurance costs.

The report, prepared for the working group by Milliman, Inc., was requested to examine the functions of the Employees Benefit Council (EBC) and the Oklahoma State Education and Employees Group Insurance Board (OSEEGIB) and to determine if a duplication of efforts existed between the two agencies.

"In this budget environment, it is more important than ever that we eliminate duplicative efforts to ensure our tax dollars are used as efficiently as possible," said House Speaker Chris Benge, R-Tulsa. "The recommendations in this report would go a long way toward lowering costs to the state while maintaining, or in some cases improving, health care services to our state employees."

The study examined current practices and made recommendations for the most cost-efficient and cost-effective way to leverage state dollars to ensure the highest level of health care for state and education employees at a competitive price.

"I have been long advocating that we examine each and every state agency in state government to bring greater efficiencies for the taxpayers, and this exercise has been a good example of that," said Senate President Pro Tem Glenn Coffee, R-Oklahoma City. "I am hopeful this will allow us to use our purchasing power as a state to reduce or better manage costs for those state employees who are struggling with health care, and ultimately deliver a better deal for the taxpayers."

The recommendations include integrating the two agencies to allow them to better focus on the health and wellness of state employees.

"This report represents an independent third party analysis of how benefit plans are designed and administered in our state," said Insurance Commissioner Kim Holland. "The recommendations offered will save taxpayer money, lower costs, and improve the health and health benefits of our state employees."