FOR IMMEDIATE RELEASE May 31, 2017
Governor Mary Fallin Signs Budget Bill, Highlights Successes in 2017 Legislative Session
OKLAHOMA CITY – Governor Mary Fallin today
signed the Fiscal Year 2018 budget bill (Senate Bill 860) into law, which closes an $878 million shortfall, maintains common
education funding at current levels, and prevents the closings of hospitals and
nursing homes. The 2018 fiscal year appropriated budget will be $6,830,177,825.
It is $37,782,641, or 0.55 percent less than the revised fiscal year 2017
appropriated budget, which includes supplementals and the revenue failure.
“Developing a
budget in this difficult fiscal and political climate is never easy,” said
Fallin. “This plan keeps our government from shutting down and, despite
challenging circumstances, funds our core mission services. We worked hard to protect key
core services – common education, health and human services and public safety. This budget minimizes cuts and
puts some recurring revenue on the table. It repeals certain exemptions in the
sales tax code.
“It
also modifies the incentives on the gross production tax from 1
percent to 4 percent on current producing wells that were drilled between July
1, 2011, and July 1, 2015,” the governor said. “That will provide about $92
million for the 2018 fiscal year budget. Various rebates for the oil and gas
industry that cost the state about $46 million a year have been suspended next
year. Of the $878 million shortfall facing lawmakers this session, about $140
million is being made up from the oil and gas industry.
“My top priorities remain strengthening
education and workforce, reducing the state’s incarceration rates and improving 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,” Fallin said.
“But we missed
an opportunity to do more to reform our budget process and find efficiencies,” she said. “We still need to do more to address structural imbalances
in the state’s budget, fix problematic tax policies and make available more
recurring and stable revenue.
“As this year’s session ends, I’m pleased that
legislators approved a fee on cigarettes. Smoking is Oklahoma’s leading cause
of preventable death. Lawmakers approving an additional $1.50 per pack is the
most important thing they could do to improve Oklahoma’s health ranking,”
Fallin said.
2018 Fiscal Year Budget
A Budget that Protects Core
Government Services
“It is not an
ideal budget, but it avoids draconian cuts to our core services such as
education, health and human services, and public safety; unfortunately it
leaves many agencies facing cuts for the 6th year in a row. It puts some
recurring revenue on the table, but does not address the structural budget
challenges that I have been working to fix since I took office. Year after
year, I have repeated my warning about our reliance on one-time funding and our
eroding tax base, and yet again we have crafted a budget that only fixes some
of the defects in our funding formula.
“There is still
work to do. When legislators return next year, they will already face a $400
million hole caused by one-time funds and $100 million of obligations coming
due over the next 12 months that will need to be paid. Hopefully, in the months
that follow they will begin putting together a plan to address the budget
and fill that hole.” – Governor Mary Fallin
2017 Policy Highlights
Criminal Justice Reform
Senate Bill 603: Requires all
offenders receive a validated risk and needs assessment that will guide
providers to programs available to offenders, and mandates the Department of
Corrections to create an individualized case plan for each offender.
SB 604: Provides training for law enforcement
relating to domestic violence victim safety at the pretrial stage. (pending governor’s signature)
House Bill 2284:
Provides training for public defenders, district attorneys and judges. Training
is to include substance abuse, behavioral health, and impact and dynamics of
domestic violence.
These three measures were the
result of recommendations from Governor Fallin’s Oklahoma Justice Reform Task
Force. The task force recommended nine other bills, but they failed to win
passage, mostly because of resistance from the chairman of the House of
Representatives Judicial Criminal Justice and Corrections Committee.
“Our
prisons are way over capacity, and our prison population is expected to grow by
25 percent in the next 10 years. Oklahoma’s overall incarceration rate is the
second-highest in the country, and we lead the nation in female incarceration –
incarcerating women at two-and-a-half times the national average. By 2018, we
will have the highest incarceration rate in the country.
“By failing to address these
issues, Oklahoma could be forced to build three new prisons over the next decade,
at a cost of almost $2 billion to taxpayers if no further action is taken. One
of the bills, House Bill 2281, included important sentencing changes to
low-level property crimes, and would have had a particularly important impact
on our female prison population. Without jeopardizing public safety, with these bills, we could
have implemented smart, data-driven solutions to safely and
prudently fix our criminal justice system.” – Governor Mary Fallin
Educational Attainment and
Improving Oklahoma’s Schools
“A thriving, prosperous economy must
have a skilled, educated workforce. That starts with good teachers in the
classrooms providing our children a quality education five days a week. We have
to ensure more existing dollars are reaching every classroom by tackling
administrative inefficiencies head-on.” – Governor Mary Fallin, 2017 State of
the State Address
House Joint Resolution 1028: Approves in whole the Assessment
and Accountability Report prepared by the state Department of Education and
approved by the state Board of Education.
HB 1576: Directs the
Commission for Educational Quality and Accountability to adopt rules requiring
coursework or training in the use of digital and other instructional
technologies as a requisite for teacher program accreditation by Nov. 1. The
bill also requires public schools to offer professional development training to
teachers on the use of digital resources in classrooms.
HB 1578: Creates a task
force of a cross section of educators, business and political leaders to study
multiple facets of the State Aid Funding Formula including formula structure,
efficiencies and cost saving measures regarding the footprint of school
districts. In addition, it creates the School Finance Review Commission
for ongoing oversight of school finance including the school funding formula,
teacher compensation, benefits and administration costs. (pending governor’s signature)
HB 1693: Revises the A-F
school grading system and brings the state into compliance with Every Student
Succeeds Act (ESSA) and Elementary and Secondary Education Act (ESEA)
standards.
HB
2155: Allows local schools to create the
Individual Career Academic Plan (ICAP) for students in grades 6-12 to
strengthen college and career goals through various activities.
SB 84 and HB 1760: Increases the
accountability measures in the Reading Sufficiency Act (RSA) by requiring a
study of students who do not achieve the academic level required to be promoted
to the fourth grade; it also makes RSA parent committees permanent and raises
the reading level required to pass from limited-knowledge to proficiency in the
2017-18 school year.
SB 301: Expands the Lindsey Nicole Henry
Scholarship program, which provides a scholarship for students to a private
school of choice, to children who are in an out-of-home placement with the
Department of Human Services (DHS) or Office of Juvenile Affairs; or who were
adopted while in the permanent custody of DHS.
SB 563: Authorizes school districts,
including technology centers, to participate in or administer a cooperative
purchasing agreement with one or more public agency.
Improving Health Outcomes
“Our overall health ranking has
improved from 49th in the country at the beginning of my term, to 46th today.
That’s progress, but none of us are going to settle for a ranking of 46th.
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 in the upcoming
fiscal 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 1703: Establishes a program to promote,
incentivize and provide support for pregnancy resource centers, also known as
“crisis pregnancy centers,” which assist pregnant women by
providing counseling, ultrasounds, prenatal care, parenting classes, maternity
clothes, adoption options, and other goods and services.
HB 2039: Allows for Naloxone, a drug that
can save lives from opioid overdose, to be prescribed and dispensed by a
licensed pharmacist. It also allows pharmacists to dispense medication so as to
save people from taking numerous trips to the pharmacy.
HB 2406: Authorizes the development of
health insurance stabilization tools in order to reduce or maintain individual
premiums, increase health insurer competition in the marketplace, and stabilize the
individual market to enable Oklahomans to continue to access
health insurance. (pending governor’s signature)
HB 2389: Authorizes a bond issue to
finance the construction of a new Department of Health laboratory to replace
the department’s antiquated and dilapidated laboratory, which is in danger of
losing accreditation.
SB 748: Allows the Department of Human
Services (subject to funding) to create a pilot program to improve
socioeconomic outcomes for children in state custody.
SB
229: Allows juveniles in the care of the
Office of Juvenile Affairs to receive appropriate treatment for mental illness
where applicable.
SB
632: Streamlines the process for transfer
and/or enrollment of students in state care, including timely delivery of
records. It also establishes the Education Compact for Students in State Care
Advisory Committee.
SB 773: Directs the
development of a Request for Information (RFI) for care coordination models for
newborns through children 18 years old who are in the custody of the Department
of Human Services.
SB
734: Expands the entities that can employ
behavioral health case managers and peer recovery support specialists to
include tribal facilities and Department of Veterans Affairs facilities. Also
removes the two-year history of addiction time limit placed on an opioid
substitution treatment program.
SB
816:
Directs medical education residency programs to give priority to in-state
students with good academic standing when assigning clinical rotation.
SB
845: Smoking Cessation and Prevention Act
of 2017 - The purpose of this legislation is to prevent people, especially children,
from taking up smoking.
SB
870: Adds outcome incentive payments to the
list of services a parent or legal guardian must pay if a court orders such for
their child who is in the custody of the Office of Juvenile Affairs.
Public Safety
HB 1845: Brings Oklahoma into compliance with the federal REAL ID
Act while protecting the privacy and freedom of our citizens. Those Oklahomans
who are concerned about privacy and liberty will be allowed to opt out and
receive a state-compliant ID, but those citizens who need access to federal
installations or who desire to travel uninhibited can receive a federally
compliant ID.
HB
1468: Creates the hidden predator act;
modifies the statute of limitations for rape and forcible sodomy against
children to be at the 45th birthday of the alleged victim.
SB
35: Allows for concealed or unconcealed
carry for individuals 21 or older with a handgun license or valid military ID
or honorably discharged service members.
SB
397: Makes exceptions for firearms carried
for self-defense in regards to bus transportation.
SB 643: Improves
statewide law enforcement ability to fight impaired driving, per recommendation
from the Governor’s Impaired Driving
Prevention Advisory Council (GIDPAC). (pending
governor’s signature)
Veterans and
Military
HB
1198: Directs the Department of Veterans
Affairs to create a registry of all veterans in the state, which will include
any person who served on active duty in the armed forces, was discharged, or
released with an honorable discharge. This creates an accurate listing of
veterans in the state, which could have numerous advantages, including more
efficient provision of services, reducing fraud, and accurate statistics.
SB
543: Authorizes the Department of Veterans
Affairs to establish and maintain a State Veterans Cemetery. Funding will be
sought through the Veterans Cemetery Grants Program provided for by the U.S.
Department of Veterans Affairs. Such grants will be used by the state of
Oklahoma to provide a final resting place for Oklahoma veterans in commemoration
of their service to our nation.
SB
690: Instructs the State Regents for Higher
Education, Oklahoma Military Department, and schools of social work to develop
a Guard advocacy program for Oklahoma National Guard soldiers and airmen. The program will allow Oklahoma universities
with social work programs to partner with the Oklahoma National Guard to allow
social work students to assist National Guard soldiers and airmen through
behavioral health issues while working on their required social work practicum.
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
HB 1533: Requires
the state bond adviser office and the Office of Management and Enterprise
Services to create a debt affordability study to analyze Oklahoma’s debt
position.
HB 1720: Allows
insurance companies to provide a discount, rate reduction or other related
adjustment for new insurable property built to resist loss due to tornado or
catastrophic windstorm events, only when the company determines the discount or
reduction to be actuarially justified.
HB 1833:
Abolishes the Council of Firefighter Training and transfers those duties to the
state fire marshal’s office.
Energy
HB 2298: Sunsets
the tax credits for the wind industry on July 1, 2017.
SB 867: Expands
laws for horizontal drilling, adds rights for vertical well owners and creates
protections for mineral rights owners.
Agriculture
HB 1388: Modifies the
nuisance provisions for agricultural operations. The purpose of modifying these provisions is
to provide protection to farmers and ranchers from frivolous and malicious
lawsuits against their operations should they expand or introduce new technology
to the operation.
HB 1431 and HB 1994: Completes the process or
privatization for the Oklahoma Sorghum Commission and the Oklahoma Oilseed
Commission. Privatizing the commissions
to a non-appropriated agency saves money in the state budget and gives the
commission freedom to retain any earned income.
SB 326: Prohibits the
possession or importation of exotic swine. This bill protects Oklahoma’s
domestic livestock and native wildlife from foreign diseases. In addition, it guards against the
potential threat exotic swine pose to private and public property, historic
landmarks and the ecosystem by rooting near waterways, causing increased erosion
and contamination of water sources.
SB 595: Provides
protection to farmers' markets registered with the Oklahoma Department of
Agriculture, Food and Forestry. It also
adds an assumption of risk for farmers’ market attendees so they cannot hold
the market responsible for inherent risks.
Tourism
SB 153: Removes the
requirement that the Tourism and Recreation Department use monies collected
from entrance or day-use charges at state parks for capital improvements. This allows the revenue to be used for
operations in parks where the fees are generated.
SB 872: Moves
ownership of the American Indian Cultural Center and Museum to the city of
Oklahoma City, relieving the state of its future financial responsibility.
Economic Development
and Commerce
HB 1681: Directs
the Oklahoma Aeronautics Commission to administer an airport inspection program
for all public-use airports in the state of Oklahoma.
HB 2351: Allows every
county, not just those with populations of 500,000 or more, to establish a tax
incentive district. This helps level the playing field for suburban and rural
counties seeking to attract new industries.
SB 120: Maintains the
job-generating tax incentive to employers and employees in the aerospace
industry by extending sunset date on the tax credit until Jan. 1, 2026.
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