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FOR IMMEDIATE RELEASE
May 27, 2016
Governor Mary Fallin Marks the End of the 2016 Legislative Session
OKLAHOMA CITY – The second session
of the 55th Legislature concluded today. Governor Mary Fallin worked
with lawmakers to deliver a fiscally responsible, balanced budget that maintains
common education funding at current levels and prevents the closings of
hospitals and nursing homes. Additionally, she worked with lawmakers to pass
and sign into law key reforms in the areas of criminal justice government
efficiency and health and human services.
“We worked hard to protect key core services – common
education, health and human services, corrections and the Oklahoma Health Care
Authority – while keeping our eight-year transportation infrastructure plan
intact. My top priorities in my second term are strengthening education and
workforce, reducing the state’s incarceration rates and improving its health
outcomes. Whether it’s improving public
safety, fixing our roads and bridges, boosting education or raising our health
outcomes and indicators, the successes of this session to protect core services
in the midst of an energy crisis will help to make Oklahoma a better place to
live, work and raise a family.
“Faced
with a $1.3 billion budget gap this session, I am pleased that lawmakers were
able to make targeted spending cuts and free up revenues through tax reform and
structural budget reforms to close the gap. Those reforms included making some
money in the Cash Flow Reserve Fund available for legislative appropriation, improving
revenue stability of the General Revenue Fund through passing legislation
creating the Revenue Stabilization Fund and apportionment reform. We also ended
the double deduction on income tax, capped a tax credit for at-risk wells and
adjusted a coal credit.
“But
I can’t help but feel we missed an opportunity to do more to reform our budget
process and consolidate agencies. We still need to do more to address structural
imbalances in the state’s budget, fix problematic tax policies and make
available more recurring, stable revenue.
“I
was also disheartened lawmakers did not address an important health improvement
measure by failing to approve a personal consumption tax on cigarettes. Smoking
is Oklahoma’s leading cause of preventable death. Lawmakers approving an additional
$1.50 per pack would have been the most important thing we could have done to
improve Oklahoma’s health ranking.
“Oklahoma
needs to address low-performing school districts and I hope lawmakers next year
will consider consolidating the administrative costs of the state’s underperforming
K-8 dependent school districts by putting them into existing preK-12 school districts.
It’s important to note this does not mean closing rural schools. I was also
disappointed lawmakers did not pass legislation to get more money to classrooms
and enhance educational outcomes in a more effective way.
“As
this year’s session ends, I’m pleased that legislators approved a $125 million
bond issue to complete vital repairs at the state Capitol and earlier passed
historic criminal justice reform bills that will help reduce Oklahoma’s prison
population without jeopardizing public safety.”- Governor Mary Fallin
2017
Fiscal Year Budget
A Fiscally Responsible Budget that
Protects Core Government Services
“This
budget closes a sizeable portion of a monumental budget hole and prevents the
dire, unacceptable outcomes so many Oklahomans have feared may happen this
session. There are still reductions in this budget, but it is certainly a
workable budget even amid a major energy sector downturn that is creating
difficulties all across Oklahoma.” – Governor Mary Fallin
The budget passed by the Legislature and
awaiting the governor’s signature sets 2017 fiscal year appropriation levels at
$6.78 billion, which is $360.7 million, or 5 percent, less than the 2016 fiscal
year appropriations prior to the midyear revenue failure. It is $67.8 million,
or 1 percent, less than 2016 fiscal year appropriations as adjusted by the
midyear revenue failure.
By freeing up revenues through tax reform,
structural budget changes and cuts elsewhere in government, current funding
levels, for the State Department of Education are maintained, which includes annualizing
its 2016 fiscal year supplemental appropriation of $51 million. An additional
$83.8 million is appropriated to the Oklahoma Health Care Authority, which will
result in negligible provider rate reductions of 3 percent or less that should
not cause closures of facilities or reductions of services.
Most agency appropriation reductions
from the 2016 fiscal year as adjusted by the midyear revenue failure to the
2017 fiscal year range from less than 1 percent to 10 percent, with many
agencies receiving an approximately 5 percent appropriation reduction for the
2017 fiscal year.
The budget maintains existing funding at
the Department of Corrections by annualizing the department’s 2016 fiscal year
supplemental appropriation of $27.6 million and making no further changes. It
also protects critical safety net programs by providing a $16.3 million, or 2.6
percent, appropriation increase to the Department of Human Services (DHS) that
fully funds the Pinnacle Plan and helps maintain other important services.
The Department of Mental Health and
Substance Abuse Services receives a $6.9 million, or 2.2 percent, appropriation
increase to offset some reductions caused by the midyear 2016 fiscal year revenue
failure.
Budget
Bills
Senate Bill 1616: (General
Appropriations bill) Makes $6.8 billion available in the 2017 fiscal year to fund
core government services. (pending
governor’s signature)
House Bill 3168: (State Capitol
bond issue) Secures full funding for the first-ever comprehensive Capitol repair
and restoration. (pending governor’s
signature)
SB 694: (DHS funding bill) Ensures
critical programs are maintained amid budget challenges. (pending governor’s signature)
SB 1577: (Elimination of at-risk well
credits) Frees up more than $100 million by reforming a tax incentive that grew
too costly. (pending governor’s signature)
SB 1606: (Elimination of personal income
tax double deduction) Eliminates the ability to deduct state income taxes on
state tax returns, bringing Oklahoma in line with most states.
SB 1614: (Reduction of coal credits) Reduces
cost for a tax credit that benefits few companies. (pending governor’s signature)
HB 3231: (Department of Transportation
bonds) Responsibly uses bond financing for road and bridge projects that have
long-term lives in excess of 20 years. (pending
governor’s signature)
HB 3206: (Cash Flow Reserve) Authorizes
excess fund balance to be certified for appropriation.
HB 2763: (Revenue Stabilization Fund) Creates
additional ways to make deposits into the Rainy Day Fund and smoothes volatile
revenue sources by saving more revenues for revenue downturns. (pending governor’s signature)
2016
Policy Highlights
Criminal Justice Reform: Smart-on Crime, Evidence-Based Measures Signed into Law
“These
measures will preserve public safety while helping control prison costs and
reduce incarceration rates. According to all measures, Oklahoma has some of the
highest incarceration rates in the country. Many of our inmates are non-violent
offenders with drug abuse and alcohol problems who need treatment. This will
pave the way for a wider use of drug courts and community sentencing as well as
give judges and district attorneys more discretion in sentencing.” – Governor
Mary Fallin
HB 2472: Gives prosecutors discretion
to file non-85 percent crimes as misdemeanors instead of felonies, while
considering the age, background, criminal history, character and rehabilitation
needs of the offender.
HB 2479: Reduces the minimum mandatory
punishment for drug offenders charged only with possession, and removes the
possibility of a life sentence for the simple possession of drugs.
HB 2751: Increases the threshold for felony
property crimes from $500 to $1,000. It was last increased in 2002.
HB 2753: Establishes means for broader use of drug courts and community
sentencing by allowing participation, when appropriate, by those who are not
yet convicted of a felony.
Other criminal justice reform measures
HB 3146: Requires all impaired driving
cases to go to district court, or a municipal court of record.
SB
1214: Modifies the “not guilty by reason of insanity”
defense in Oklahoma by adding a “guilty but with mental defect” and “not guilty
by reason of mental illness” defense.
HB 2275:
Requires DNA test for
every person 18 years or older who is arrested for a felony offense. Now,
such tests are required only for those convicted of a felony.
HB
2474:
Allows limited driving privileges for offenders re-entering the community,
increasing the likelihood of success and productivity of those individuals.
Educational Attainment and Improving Oklahoma’s Schools
“Oklahoma’s future sits in the
classrooms of today. The education of our students remains my biggest priority
in my budget, even in fiscal climates like this.’ – Governor Mary Fallin, 2016
State of the State Address
HB
2720: Amends the Oklahoma Charter School Act to
clarify how public school districts may convert an existing public school to a
“conversion school.” A conversion school has the flexibility of a charter
school.
HB 2535: Creates
opportunities for schools to enter into agreements with public or private
organizations for the purpose of creating apprenticeships, internships, mentorships
that may fill the requirement of elective courses for juniors and seniors.
SB 1269: Develops
college and career endorsements for high school diplomas that direct student
coursework toward clear college and career pathways.
HB 3218: Reforms the student assessment requirements by
ending End of Instruction Exams and replacing them with high quality
assessments that measure the Oklahoma Academic Standards, provide a comparison on
how Oklahoma students correlate to their peers nationally
and provide a measure of future academic success for high school students. (pending governor' signature)
HB
2957: Modifies the Teacher Leader Effectiveness
Evaluation System (TLE) to create evidence-based and researched professional
development plans for every Oklahoma educator.
Improving Health Outcomes
“Our overall health ranking has improved from 49th
in the country at the beginning of my term, to 45th today. That’s
good progress, but none of us are going to settle for a ranking of 45th.
Together, we can continue to improve our health. As Oklahomans we can do
better. We all know that we’re facing a tight state budget this year. But that
doesn’t mean we shift our focus from our health and wellness. It helps all of
us – who are able – to be physically active. It keeps us in shape, helps us
deal with stress and improves our chances of being healthy. – Governor Mary
Fallin
HB 2549 & SB 1149: Supports
access to needed healthcare by stabilizing funds to nursing homes and integrating
quality using the upper payment limit.
SB 1386: Allows the state to apply
for an Innovation Waiver to make insurance more affordable and assist with
healthcare system transformation.
HB 1697: Clarifies
language when assisted outpatient treatment, a version of court-ordered
treatment, can be used for those with mental illnesses who have been
repeatedly unsuccessful in following their treatment plans.
HB 2547: Creates efficiency in
healthcare by modifying telemedicine requirements.
SB 983: Creates
an avenue for private sector input to the state chief information officer on
health information technology investments.
Government Efficiency
“Government
can always find ways to save taxpayer dollars by operating more efficiently and
effectively. The reforms we continue to pursue on a state level will help to
produce more flexible and responsive state agencies, eliminate government waste
and save money.” – Governor Mary Fallin
SB 1570: Consolidates the Will Rogers
Memorial Commission into the Oklahoma Historical Society, including funds,
personnel and property.
SB 866: Paves the way for a new state medical examiner
facility to be constructed and re-accreditation for the agency.
SB 1388: Consolidates the
Oklahoma Scenic Rivers Commission into the Grand River Dam Authority, including
facilities, vehicles and lands.
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