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Sine Die in Sight

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When lawmakers adjourn the legislative session, it’s called “sine die,” which is Latin for “without assigning a day for a further meeting.”  House Republican leadership announced last week they intended to wrap up the 2018 session around May 4, a few weeks before we are legally required to end legislative work.

 

As we near the end of my second regular session (and fourth if you count the special sessions), I’ve found myself really proud of what we’ve finally accomplished. It wasn’t perfect, and it certainly wasn’t pretty, but it was progress.

 Most notably, lawmakers passed legislation raising salaries for all teachers, support staff and most state employees. These raises will have an impact on thousands of Oklahoma families across this state who deserve this increased compensation for their service to the state. Legislators also increased funding for education through a textbook stipend and boosted state aid formula dollars. These are all wins – all steps in the right direction.  

 What I’m perhaps most proud of, however, is that Democrats and Republicans were able to accomplish this in a year without a huge surplus in our budget. As many of you know, recent state budgets have enforced cut after cut to state agencies because of revenue failures. These slashed budgets have resulted in numerous headaches for the civil servants who have been forced to do more with less. This year, though, lawmakers joined together to change the state’s course.

Nobody likes increased taxes, especially when it impacts your bottom line. But sometimes good governing involves making uncomfortable choices because we know it will set the state on a better path forward. With the revenue-raising measures my colleagues and I passed earlier this session, we’ve done that and we’ve done it in a way that will impact most Oklahomans on average of $21 per year in gasoline taxes.

Those votes and the bipartisan cooperation mean we can start to properly fund our government. And thankfully, the increased revenue means a “robust increased budget,” according to Majority Floor Leader Jon Echols.

Of course, my colleagues and I can’t take all the credit. The economy continues to improve, too. The Office of Management and Enterprise Services (OMES) reported that March General Revenue Fund collections were $405.5 million – $53.5 million, or 15.2 percent, above March 2017 collections and $21.4 million, or 5.6 percent above the monthly estimate.

Moody’s, one of the nation’s top credit-rating agencies, also issued a credit-positive report for Oklahoma earlier this month. If you remember, Moody’s gave Oklahoma a credit negative warning about five months ago when the Legislature had not yet closed a $215 million hole in the state budget. Talk about a turnaround.

 

As we wrap this session up, I will continue to work during the interim to find efficiencies in government that allow us more freedom to fully fund core services. It’s a project I’ve been working on since my first election, and it’s one I’ll continue from here on out. We cannot allow government waste to hinder our state’s ability to efficiently function. I know you want a funded government that works for its people and does so without waste.

As always, I’m here if you need me. Don’t hesitate to reach out at Marcus.McEntire@okhouse.gov or 405-557-7327. Thanks, and God bless.

Senate Report from Chris Kidd April 26 2018

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 It’s no secret; education and its funding have been the focus and all-consuming issue this session. It’s much more than just a legislative issue, it’s a personal one.  The hundreds of Senate District 31 constituents who have visited my office over the last four weeks aren’t just constituents; these are the people we all do life with. People, who I go to church with, grew up with. They’re the ones who taught me in school. They are classmates, former students of mine and former colleagues. They are relationships I value.

But in addition to education, our rural nursing homes and hospitals, our mental health system, our intellectually and developmentally disabled population, our roads and bridges also need attention and funding. Two things I’ve learned serving as your senator: you elected me to ensure all areas of state government are running efficiently (without waste) and to make sure all areas of state government are properly funded.

Regarding state government inefficiencies, waste, and reforms:

Last session, new legislation was signed into law for the first time in state history requiring performance audits of the state’s 10 largest agencies every four years. (HB 2311)

In addition, we have cut 85% of the state’s agencies, 45% over the last decade. We’ve also reduced 7,000 state employees and consolidated or eliminated 18 agencies in that time.

Regarding proper funding of state government (education):

This session, the state legislature passed a bi-partisan education funding bill that included the following:

1. Teacher pay raises: $353.5 million

2. Support staff pay raises: $52 million

3. Text books: $33 million

4. Teacher Flex Benefits: $24.6 million

5. State Employee Pay Raise: $63.7 million

To put this into perspective, half a billion dollars (over $500 million) in new revenue was created for public education in an environment of tough political circumstances and a requirement of a three-fourths majority vote. What had not been accomplished in 30 years and what seemed to be impossible, was accomplished on March 26, 2018. This legislation provides the largest teacher pay raise in state history, moving Oklahoma to the second-highest in the region in average teacher pay.

We also passed HB 3705, which appropriates $2.9 BILLION, or a 19.7 percent increase overall in education funding. The bill includes a 22 percent increase overall to the State Aid Funding Formula, with $33 million line-itemed for textbooks and $17 million into the state aid formula. The revenue package also includes $63 million in tiered funding for state employee pay raises, and another $52 million for a $1,250 pay raise for education support staff.

What was accomplished with the passage of the above mentioned legislation is historic. Difficult decisions were necessary, and while our work in education is not done, I am proud of the strides we have achieved thus far.

At the State Senate, I can be reached by writing to Senator Chris Kidd, State Capitol, 2300 N. Lincoln Blvd. Room 411A, Oklahoma City, OK 73105, emailing me at kidd@oksenate.gov, or by calling (405) 521-5563 and speaking to my assistant Suzanne Earnest.

New law to allow Oklahoma farmers to grow hemp

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OKLAHOMA CITY – Sen. Lonnie Paxton applauded Gov. Fallin for signing legislation Tuesday to help grow Oklahoma’s agriculture industry by allowing farmers to grow industrial hemp. House Bill 2913, by Sen. Paxton, Rep. Jon Echols and Rep. Mickey Dollens, creates the Oklahoma Industrial Hemp Agricultural Pilot Program.

“Currently, Oklahoma can import hemp but can’t grow it.  This will help diversify our state’s struggling economy and will provide a tremendous boost to the agriculture industry,” said Paxton, R-Tuttle.  “This new industry will potentially create thousands of jobs and put hundreds of millions of dollars a year into our economy.  There’s a strong possibility that it could easily become a $1 billion industry.”

The new law will allow universities or farmers contracting with universities to cultivate certified hemp crops for research and development for industrial uses.  The Department of Agriculture, Food, and Forestry will manage the program.  A revolving fund will also be created for all registration, lab, and inspection fees paid by program participants.

Hemp is the strongest natural fiber in the world and has been found to have more than 50,000 uses including rope, clothes, food, paper, textiles, plastics, insulation and biofuel.  Being a weed, it is drought tolerant taking one-third the amount of water of alfalfa.  The benefits of cultivating this plant is that it can yield 3-8 dry tons of fiber per acre per year, which is four times what an average forest can yield and it does not require chemicals such as pesticides or herbicides. Hemp could yield Oklahoma farmers as much as $1,500 per acre.

The new law, which went into effect upon being signed, was made possible by the Agricultural Act of 2014 allowing the growing of hemp under pilot programs overseen by universities.  Nearly 40 other states already have industrial hemp programs.

Senate approves work requirements for Medicaid recipients

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OKLAHOMA CITY – To strengthen Oklahoma families and the state’s economy, the Senate approved legislation Wednesday to establish work or training requirements to participate in the SoonerCare Medicaid program.  House Bill 2932, authored by Sen. Adam Pugh and Rep. Glen Mulready, would instruct the Oklahoma Health Care Authority (OHCA) to seek waiver authority to modify Medicaid eligibility criteria to require documentation of the same education, skills, training, work or job activities currently required by the Supplemental Nutrition Assistance Program (SNAP).

“This bill follows direction from the federal government to help those Medicaid recipients who are working-aged and able-bodied get back into the workforce and become a self-sufficient, contributing member of society.  It will align SoonerCare qualification requirements with those already in place for Oklahoma’s SNAP,” said Pugh, R-Edmond.  “I grew up extremely poor and my mom, who was a single parent, worked three jobs to support our family.  I would work as many jobs as necessary to take care of my family.  This will encourage Medicaid recipients to take some personal responsibility in getting the education or job training they need to support themselves and their families.”

The bill would mirror federal Medicaid law and SNAP by exempting from the new eligibility requirements those individuals who are 19 years of age or younger or over 60 years old, pregnant, medically-certified as physically or mentally unfit for employment, or who are a parent or caretaker of a dependent child under a year old.

According to the OHCA, there are approximately 106,600 Oklahomans who are a part of the parent/caretaker group receiving Medicaid coverage who are able-bodied/working-aged adults 19 to 64 who are not pregnant, disabled or blind.  Thirty-two percent of those recipients were male and 25 percent were two adults living in the same home and both receiving Medicaid coverage. An analysis by the agency of SoonerCare members covered in FY’17 found that around 8,000 out of those 106,600 would not have met any of the exemptions outlined in the bill.

Currently, more than 600,000 Oklahomans receive SNAP benefits (formerly known as food stamps) each month. In FY’17, there were more than one million Oklahomans enrolled in SoonerCare Medicaid with nearly 796,000 SoonerCare recipients in March 2018.  OHCA also noted there are nearly 81,000 SoonerCare recipients who also receive SNAP benefits.

The coauthor of the measure, Sen. Paul Rosino has been a strong advocate for the federal government’s push to get states to create work requirements for eligible Medicaid recipients.

“I applaud the Governor for championing these work requirements and my colleagues in the Senate and House for supporting them.  This will provide these individuals with the tools, whether through education or job training, to help better their lives to be able to support themselves and their families,” said Rosino, R-Oklahoma.  “We must break the cycle of government dependence that is getting worse with each generation. Since getting into office, personal responsibility and work requirements for able-bodied adults 19 to 64 has been one of my top priorities. I will continue to advocate for and support any legislation that helps strengthen Oklahoma families and our economy by helping more people become independent and self-sufficient.”

The bill now returns to the House for final consideration. Besides being approved by the Governor, the new eligibility requirements would have to also be approved by the federal Centers for Medicare and Medicaid Services.

Bill aimed at boosting state’s second largest industry

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OKLAHOMA CITY – The Senate Appropriations Committee unanimously approved legislation Wednesday to boost the state’s second largest industry, the aerospace industry.  House Bill 2578, by Sen. Paul Rosino and Rep. Tess Teague, would create the Aerospace Commerce Economic Services (ACES) program under the Department of Commerce.  The ACES program is based on similar business models from other states that have proven to have substantial economic impacts.

“The aerospace industry in Oklahoma is a $44 billion industry and utilizing ACES proven organizational structure and methodology is estimated to further grow the industry to $50-$60 billion annually,” said Rosino, R-Oklahoma City.  “This focused initiative will help drive further job creation, economic growth and increased tax revenues for our state.”

HB 2578 would create a partnership of service providers to more effectively respond to the needs of the aviation, aerospace and defense industries in the areas of education and training, research and economic development.  A panel would be formed, chaired by the Governor to facilitate Oklahoma agencies, industry, academia and other key stakeholders in creating and aligning goals.

ACES would build on the success of its precursor, the Center of Aerospace and Defense Supplier Quality (CADSQ) ran by the Oklahoma Aeronautics Commission (OAC).  A 2015 Economic Impact Study found that CADSQ created $72 million in new business and had a $237 million state economic impact.  The OAC invested $2 million in CADSQ, which produced $9.7 million in new taxes for the state.

“The aerospace industry has tremendous momentum right now and we must keep that going. The previous business model used by the Oklahoma Aeronautics Commission provided a five to one or 517 percent return on the state’s investment and ACES will help produce even more growth in Oklahoma’s economy,” said Rosino. “Having a strong business strategy will help the aerospace industry continue growing by being able to better utilize available resources for the recruitment of specific targeted businesses that have production and sustainment capabilities.”

HB 2578 will now go before the full Senate.

Shelby and Ryleigh Watkins serve as pages for Senator Chris Kidd

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Comanche High School senior, Shelby Watkins, and sophomore, Ryleigh Watkins served as Senate pages for State Sen. Chris Kidd, R-Waurika, during the tenth week of the legislative session from April 9 – 12, 2018. Shelby and Ryleigh are the daughters of Waurika residents Chris and Raquel Watkins.

Statement from Senate Democrats on Oklahoma Teacher Walkout

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OKLAHOMA CITY- Senate Democratic Leader John Sparks released the following statement on behalf of the Senate Democratic Caucus:

“Today the Senate Democratic Caucus welcomed thousands of educators, parents, students, and concerned citizens to the Capitol. We stand with them in their fight to properly fund public education in Oklahoma.

Paying our teachers a fair and competitive salary is a priority, but this movement is about more than just teacher pay, it’s about the chronic underfunding of public education in Oklahoma.

Over the last decade state funding for public education is down $180 million, marking a 28% cut. Since the 2013-14 school year, student enrollment has grown by 15,000 students but there are 700 fewer teachers in our public schools, with 20% of public school districts in Oklahoma moving to four day school weeks.

Our students deserve better. We need to restore funding for education which has been slashed by years of tax cuts. The legislature passed a revenue package last week, but more work needs to be done to provide sustainable revenues for education.

Last month the Senate passed SB 1086, bipartisan legislation to eliminate the capital gains tax loophole, which would bring in an additional $100 million in revenue for education. We urge the House to take action and pass the bill this week so we can make a serious investment in Oklahoma’s classrooms.”

Senate May Repeal Hotel Tax

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OKLAHOMA CITY – The Oklahoma Senate will meet Friday to consider special session and regular session measures.

The Senate will meet in special session at 8:30 a.m. Friday to consider HB 1019xx, the marketplace fairness act or so-called “Amazon bill,” as well as HB 1012xx, a bill that repeals the “hotel/motel” tax that was originally included the $530 million revenue package (HB 1010xx) passed by the Legislature last week that completely funds the largest teacher pay raise in state history.

The Amazon bill is estimated to generate approximately $20 million and when added to growth revenue in the state budget more than makes up for the hotel/motel tax.

The Senate also will meet in regular session Friday morning to consider HB 3375, the so-called “ball and dice” bill.

Agendas can be viewed on the Senate website. Senate floor proceedings can be viewed via livestream.

Teacher Pay Negotiations Continue

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The Capitol has been fairly quiet this past week, which is typical for Spring Break. Lawmakers met briefly on the floor each day, and Senate bills were assigned to committees. Several of my colleagues and I brought our families to Oklahoma City for the break, and I really enjoyed getting to meet everyone. It was especially fun to watch our children play together and observe life on the House floor – a future generation of leaders, that’s for sure!

Even though floor sessions and committee meetings were pretty light this week, negotiations continue on a teacher pay raise plan. Leaders in the House, Senate and governor’s office are hard at work trying to provide teachers with proper compensation while balancing the needs of all other core services of government. It’s not an easy feat, which is why you may have seen several possible plans floating around social media lately.

Last week, House Speaker Charles McCall unveiled a proposal that is being dubbed the Transformational Teacher Pay Raise Plan. This plan is a backup plan should a grand revenue package we can pass not materialize. It is a long-range plan intended to come to fruition over the course of the next six years. What it lacks in immediacy, it makes up for in salary increases. By the time the plan is complete, Oklahoma’s teacher salaries would be highest in the region. Educators who have been in the classroom for 25 years would be making $60,000 on the minimum teacher salary schedule.

As the teacher walkout looms, there are a number of other plans on the table to fund education, fund teacher and state employee pay increases, and fund core services. It is becoming evident I will be forced to make some tough calls on your behalf soon. Lawmakers will be faced with choices I would honestly rather not face over these next few weeks and months, but my job is to listen to you and carry out the will of the people in House District 50.

Of course, none of this is easy – and all of it is taking much longer than anyone would like. But I am in this for the long haul, and I intend to stand with teachers every step of the way.

If you have any thoughts on the pay raise proposals, please reach out and let me know. I’m at Marcus.McEntire@okhouse.gov  or 405-557-7327. Thanks, and may God continue to bless our great state.

Senate Review March 22 2018

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We’re into the second half of the legislative session.  Being that last week was the deadline for floor action on Senate bills, we were extremely busy.  We heard more than 300 bills in the last two weeks. 

Senate Republicans voted strongly (85%) in favor of the revenue package presented Thursday night through HB 1033.  We voted on HB 1033 that would generate $450 million for a 12.7 percent teacher pay raise and a $2,500 state employee raise.  The measure would have increased the GPT from 2-4 percent on all wells ($126 million); increase the gas diesel tax by six cents ($170 million); and increase the cigarette tax by $1/ pack ($152 million). 

            SB1033 failed by two votes, only two votes away from the constitutionally-required three-fourths majority.  But we’re not done.  We will keep working to find a solution to create revenue that our Democratic colleagues can agree with.  While the bill to pay for the raise failed, the actual bill (SB133) creating the raise passed overwhelmingly so as soon as we find a revenue source, the vehicle is there ready to move forward.

Unfortunately, revenue raising measures must get approved by 75 percent of both the Senate and House.  In the Senate that is 36 votes and in the House, it’s 76 votes.

The source of the gridlock in Oklahoma is that we require super majority approval for revenue raising measures. SQ 640, enacted by voters in 1992, has led to the current gridlock and made it virtually impossible to approve reasonable revenue plans to shore up the state budget and provide teacher and state employee pay raises. 

The Senate recently approved SJR61 which would send SQ640 back to the vote of the people for them to modify SQ 640 so that 75 percent support for tax increases is required except for increases to sales and use taxes, which would only require a 60% (3/5) support from the House and Senate. 

Also this week, I finished up my remaining bills that passed off the Senate floor.  These included:  SB1364, which modifies procedures for sale of certain property and SB1365 modifies the maximum amount of certain county retirement contributions. SB1369 is a bill that clarifies language relating to police and fire arbitration. SB1372 extends the billing cycle of the State Medicaid Program and, lastly, SB1488 creates a lifetime landowner license.

            At the State Senate, I can be reached by writing to Senator Chris Kidd, State Capitol, 2300 N. Lincoln Blvd. Room 411A, Oklahoma City, OK 73105, emailing me at kidd@oksenate.gov, or by calling (405) 521-5563 and speaking to my assistant Suzanne Earnest.

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