OKLAHOMA CITY -- The chair of a House committee blasted State Treasurer Scott Meacham for opposing a proposal that would earmark $1 million for an audit of the state Department of Corrections.
That line-item, state records show, is part of a recently passed budget agreement developed by House and Senate leaders. The bill -- House Bill 1234 -- has drawn the fire of Gov. Brad Henry and his chief budget negotiator, Meacham. Neither Henry nor Meacham participated in meetings that spawned the bill.
On Friday, state Rep. Rex Duncan, R-Sand Springs, claimed Meacham has a "poor track record" when it comes to making budget projections.
"'Meacham math' certainly isn't doing the state any favors," Duncan, chair of the House Judiciary and Public Safety Committee, said in an e-mailed media statement. "Given his failures on the tobacco tax and lottery, it's clear (he) has a poor track record when it comes to making projections. He has aggravated the harmful cycle of band-aid supplemental spending on prisons, and it's time to stop that cycle."
Duncan continued, accusing Meacham of having "consistently low-balled" budget estimates for DOC.
"In each case the Legislature appropriated millions more for state prisons than recommended by the executive branch, and then had to make supplemental appropriations on top of that year after year," Duncan charged.
Friday afternoon Meacham's spokesman, Tim Allen, downplayed Duncan's statement. "It sounds like we struck a nerve," Allen said.
Allen said lawmakers have failed to provide the proper funding for the corrections department.
"Consistently, the administration has proposed funding for the Department of Corrections as requested by the Department of Corrections," he said. "And consistently, the Legislature has failed to adaquetly fund the Department of Corrections and has been forced to come back in and pass supplemental appropriations."
Duncan said the audit's $1 million price tag is a fraction of DOC's total budget. "Meacham should stop protecting mediocrity after four years of failed policies to address problems in Oklahoma's prisons," he said.
But Meacham, Allen said, is not opposed to an audit.
"An audit is fine. But earlier, the state auditor did a complete audit of DOC and it only cost $16,000. And now, the Legislature needs $1 million for the same thing?"
Duncan said neither Meacham nor the governor questioned the proposal when it was first introduced in January.
"If Meacham wants to oppose reform measures, then I think he is out on island by himself," Duncan said. "I certainly hope the governor repudiates this stance."
Allen countered, saying responsibility for the problem was the Legislature's.
"They've never wanted to bite the bullet and do what they needed to do," he said. "That's the problem."
The Governor has until Wednesday to take action on the bill.
Monday, March 5, 2007
Budget deal "flawed" Meacham says
OKLAHOMA CITY — An omnibus budget bill, quickly ushered through both houses of the Legislature this week, is “very flawed” and a good portion of it should be vetoed, the governor’s chief budget negotiator said Thursday.
“I’ve never seen anything like this before,” said State Treasurer Scott Meacham, “where a deal just sorta’ emerged from the back room and then passed both bodies of the Legislature within a week.”
Meacham, Gov. Brad Henry’s Cabinet secretary for revenue and finance — and Henry’s chief budget negotiator — wasn’t allowed to participate in the House-Senate budget meetings which created the bill.
And that, he said, created problems.
“This is the type of product you get when three people get together behind closed doors and do a deal,” he said. “There’s a reason why the subcommittees exist. There’s a reason why we go through the appropriation process. There’s a reason you work together. You don’t get extra points for doing it fast, but for doing it right.”
And, so far, Meacham said, the Legislature gets very few points.
“The whole time we’ve been here, there’s always been this idea that the Legislature writes the budget and the governor’s job is to sign off on it,” he said. “I don’t think lawmakers fully understand that state government is a three-legged stool. It makes a lot more sense to participate from the outset.”
As it’s currently written, Meacham said the budget — contained in House Bill 1234 — is very flawed. So flawed, he said, that it funds some programs which no longer exist, doesn’t fully pay for last year’s $3,000 pay increase for teachers and only gives the Department of Corrections enough supplemental revenue to operate for another 30 days.
“I think the taxpayers expect the Legislature to get up here and work,” he said. “They want lawmakers to take the time to get things done right. This bill doesn’t do that.”
Meacham said the bill’s flaws include:
• Not providing enough funds for school districts to fund last year’s teacher pay increase for those teachers who have a portion of their salaries funded by federal money — such as special education teachers. “That’s at least an $8 million problem,” he said.
• Not annualizing the pay increase so it includes teachers hired in 2007. “By the time schools would get their money, they would actually see a cut in their operations budget,” he said.
• Funding programs which have previously been eliminated. “Lawmakers put in money for the Stars program. But that program doesn’t exist any more.”
• Funding the state’s higher education system at a ‘stand-still’ level which would result in “big tuition increases.”
• Only providing the state Department of Corrections about $10 million when they need $40 million. “They need $40 million for operations to the end of the fiscal year,” he said. “But the legislature only provided them $10 million. That will only keep them operating for about 30 days.”
• Funding a pay increase for correctional officers twice — in the corrections budget and in the general appropriations budget.
But Meacham saved his harshest criticism for a $1 million appropriation to the Legislature’s joint staff, the Legislative Service Bureau.
“They (lawmakers) gave the Legislative Service Bureau $1 million to go and contract with somebody — and we don’t know who — to find out how much we should fund corrections,” he said. “Both the House and Senate have fiscal policy analysts, but instead they want to contract with someone else to find out how much money to appropriate to DOC.”
“Funding corrections isn’t hard,” he said. “It’s a function of the number of contract beds you’re gonna have to pay for through the end of the year, plus salaries you’re gonna have to pay for through the end of year. It’s funny, we’re able to figure out how much money they need, I don’t understand why they can’t. It’s not that hard.”
Because of the bill’s flaws, Meacham said he would ask Gov. Henry to use a line-item veto on “a majority” of the proposal and only endorse the bill’s supplemental appropriations.
“I think it’s important that Gov. Henry sign the supplemental section,” he said. “But he should take a hard look at vetoing all, or a part of the 2008 budget.”
Henry, Meacham said, almost needs to veto the whole general appropriation budget just to force lawmakers to start over. “Why not just run the supplemental bill,” he said. “We’ve got plenty of time to do the general appropriations measure.”
That idea probably won’t sit well with legislative leaders.
In a statement issued Thursday, Sen. Glen Coffee, the Senate’s co-president pro tempore, praised the proposal, calling it “historic.”
“The Legislature has made history by reaching the earliest agreement on the state budget since 1972,” Coffee said. “We have worked very hard to develop this carefully balanced bipartisan budget agreement. When Gov. Henry returns we are confident he will like what he sees in this historic agreement.”
The Senate’s Democratic leader, Mike Morgan, agreed.
“This measure represents the earliest budget agreement in more than three decades. For the first time, it will allow us to meet the ‘fund education first’ deadline we established in 2003,” he said. “Most importantly, the budget agreement will allow state agencies to continue to provide the services Oklahomans count on every day. It also makes good on all of the Legislature’s existing obligations.”
Meacham disagreed.
“We didn’t even get the bill until Monday afternoon,” he said. “And every day we find new problems. The bill is very flawed; the question is whether it is so flawed that you can give it life support and get it fixed, or whether it needs to die and start over — but that’s the governor’s decision.”
“I’ve never seen anything like this before,” said State Treasurer Scott Meacham, “where a deal just sorta’ emerged from the back room and then passed both bodies of the Legislature within a week.”
Meacham, Gov. Brad Henry’s Cabinet secretary for revenue and finance — and Henry’s chief budget negotiator — wasn’t allowed to participate in the House-Senate budget meetings which created the bill.
And that, he said, created problems.
“This is the type of product you get when three people get together behind closed doors and do a deal,” he said. “There’s a reason why the subcommittees exist. There’s a reason why we go through the appropriation process. There’s a reason you work together. You don’t get extra points for doing it fast, but for doing it right.”
And, so far, Meacham said, the Legislature gets very few points.
“The whole time we’ve been here, there’s always been this idea that the Legislature writes the budget and the governor’s job is to sign off on it,” he said. “I don’t think lawmakers fully understand that state government is a three-legged stool. It makes a lot more sense to participate from the outset.”
As it’s currently written, Meacham said the budget — contained in House Bill 1234 — is very flawed. So flawed, he said, that it funds some programs which no longer exist, doesn’t fully pay for last year’s $3,000 pay increase for teachers and only gives the Department of Corrections enough supplemental revenue to operate for another 30 days.
“I think the taxpayers expect the Legislature to get up here and work,” he said. “They want lawmakers to take the time to get things done right. This bill doesn’t do that.”
Meacham said the bill’s flaws include:
• Not providing enough funds for school districts to fund last year’s teacher pay increase for those teachers who have a portion of their salaries funded by federal money — such as special education teachers. “That’s at least an $8 million problem,” he said.
• Not annualizing the pay increase so it includes teachers hired in 2007. “By the time schools would get their money, they would actually see a cut in their operations budget,” he said.
• Funding programs which have previously been eliminated. “Lawmakers put in money for the Stars program. But that program doesn’t exist any more.”
• Funding the state’s higher education system at a ‘stand-still’ level which would result in “big tuition increases.”
• Only providing the state Department of Corrections about $10 million when they need $40 million. “They need $40 million for operations to the end of the fiscal year,” he said. “But the legislature only provided them $10 million. That will only keep them operating for about 30 days.”
• Funding a pay increase for correctional officers twice — in the corrections budget and in the general appropriations budget.
But Meacham saved his harshest criticism for a $1 million appropriation to the Legislature’s joint staff, the Legislative Service Bureau.
“They (lawmakers) gave the Legislative Service Bureau $1 million to go and contract with somebody — and we don’t know who — to find out how much we should fund corrections,” he said. “Both the House and Senate have fiscal policy analysts, but instead they want to contract with someone else to find out how much money to appropriate to DOC.”
“Funding corrections isn’t hard,” he said. “It’s a function of the number of contract beds you’re gonna have to pay for through the end of the year, plus salaries you’re gonna have to pay for through the end of year. It’s funny, we’re able to figure out how much money they need, I don’t understand why they can’t. It’s not that hard.”
Because of the bill’s flaws, Meacham said he would ask Gov. Henry to use a line-item veto on “a majority” of the proposal and only endorse the bill’s supplemental appropriations.
“I think it’s important that Gov. Henry sign the supplemental section,” he said. “But he should take a hard look at vetoing all, or a part of the 2008 budget.”
Henry, Meacham said, almost needs to veto the whole general appropriation budget just to force lawmakers to start over. “Why not just run the supplemental bill,” he said. “We’ve got plenty of time to do the general appropriations measure.”
That idea probably won’t sit well with legislative leaders.
In a statement issued Thursday, Sen. Glen Coffee, the Senate’s co-president pro tempore, praised the proposal, calling it “historic.”
“The Legislature has made history by reaching the earliest agreement on the state budget since 1972,” Coffee said. “We have worked very hard to develop this carefully balanced bipartisan budget agreement. When Gov. Henry returns we are confident he will like what he sees in this historic agreement.”
The Senate’s Democratic leader, Mike Morgan, agreed.
“This measure represents the earliest budget agreement in more than three decades. For the first time, it will allow us to meet the ‘fund education first’ deadline we established in 2003,” he said. “Most importantly, the budget agreement will allow state agencies to continue to provide the services Oklahomans count on every day. It also makes good on all of the Legislature’s existing obligations.”
Meacham disagreed.
“We didn’t even get the bill until Monday afternoon,” he said. “And every day we find new problems. The bill is very flawed; the question is whether it is so flawed that you can give it life support and get it fixed, or whether it needs to die and start over — but that’s the governor’s decision.”
Future of budget deal in doubt
OKLAHOMA CITY -- The future of the current version of a quickly passed omnibus budget bill is bleak, a spokesman for Gov. Brad Henry's chief budget negotiator said Monday.
"The FY 2008 budget will not be what is currently in House Bill 1234," said Tim Allen, Oklahoma Treasurer Scott Meacham's spokesman. "There will have to be changes made."
And while Meacham -- the governor's cabinet secretary for revenue and finance -- Henry and Rep. Danny Morgan held a press conference Monday to discuss their concerns about the proposal, Henry spokesman Paul Sund confirmed the governor will sign the bill's supplemental appropriations for the departments of education and corrections.
"The governor will defenitely sign the education supplemental and the corrections supplemental," Sund said. "He'll sign the education supplemental so school districts can get money needed for the teachers' pay raise, and he'll sign the corrections supplemental because the state's prisons need the money."
However, Henry said he would "closely look at" the remainder of the bill, including sections which cover the state's $7 billion 2008 budget.
"My staff and I will begin a line-by-line review of the 49-page, omnibus bill and pass final judgment when the review is completed," Henry said.
The governor has until Wednesday to take action on the proposal.
Last week, Henry and Meacham complained that they were left out of budget negotiations. "I'm deeply disappointed in the way budget negotiations were conducted and the manner in which the vast majority of the 149-member Legislature and the executive branch were denied input in the process," Henry said.
However, on Monday, House Speaker Lance Cargill, R-Harrah, denied that Henry or Meacham were excluded from budget hearings.
"We started budget meetings in January," Cargill said. "Those were open committee hearings. That's inaccurate (for the Gov. and Meacham to say) they weren't included."
Earlier this year, Cargill said, he wrote a letter to Henry inviting him to conduct weekly meetings with legislative leaders.
"I wrote Gov. Henry a hand-written letter and invited him to have weekly meetings with legislative leaders," Cargill said. "The governor declined those meetings, saying he only wanted to meet as needed. It's very ironic for him to now say we excluded him."
Yet while Cargill urged Henry to sign the full proposal and described the budget as "a positive achievement for the state" he did leave room for negotiation.
"This bill isn't set in stone," Cargill said Monday afternoon. "We still have a reconciliation process. This is just a safety net. It's not the final product or end game of the Legislature."
Sill, both Henry and Meacham described the current proposal as "flawed."
"The flaws in this process and the $7 billion budget bill have been well documented by the executive branch and members of the House Democratic Caucus," the governor said.
Cargill countered, saying HB 1234 is "a historic measure" which represents "the first time the state has met" its "fund education first" deadline.
"The only substantive claims made by the state treasurer have been refuted point by point," Cargill said. "For example, the Stars program, that's wrong. That program is an ongoing program."
Last week, Meacham said the bill didn't fully pay for a $3,000 pay increase for teachers, and only gave the Department of Corrections enough supplemental revenue to operate for another 30 days. Meacham said he urged Henry to veto "almost all" of the bill's 2008 general appropriations budget.
Should that happen, Cargill said, House leaders "would have to look" at the governor's action. "A veto would certainly not be in best interest of the state," Cargill said. "This bill was done in a bipartisan fashion."
Henry, Cargill said, also would have a hard time sustaining his veto.
"We're pleased that a majority of the House Democratic caucus voted for the measure," he said. "I think it's very difficult for those who voted for the budget to turn and now flip-flop because the governor told them to.
"The FY 2008 budget will not be what is currently in House Bill 1234," said Tim Allen, Oklahoma Treasurer Scott Meacham's spokesman. "There will have to be changes made."
And while Meacham -- the governor's cabinet secretary for revenue and finance -- Henry and Rep. Danny Morgan held a press conference Monday to discuss their concerns about the proposal, Henry spokesman Paul Sund confirmed the governor will sign the bill's supplemental appropriations for the departments of education and corrections.
"The governor will defenitely sign the education supplemental and the corrections supplemental," Sund said. "He'll sign the education supplemental so school districts can get money needed for the teachers' pay raise, and he'll sign the corrections supplemental because the state's prisons need the money."
However, Henry said he would "closely look at" the remainder of the bill, including sections which cover the state's $7 billion 2008 budget.
"My staff and I will begin a line-by-line review of the 49-page, omnibus bill and pass final judgment when the review is completed," Henry said.
The governor has until Wednesday to take action on the proposal.
Last week, Henry and Meacham complained that they were left out of budget negotiations. "I'm deeply disappointed in the way budget negotiations were conducted and the manner in which the vast majority of the 149-member Legislature and the executive branch were denied input in the process," Henry said.
However, on Monday, House Speaker Lance Cargill, R-Harrah, denied that Henry or Meacham were excluded from budget hearings.
"We started budget meetings in January," Cargill said. "Those were open committee hearings. That's inaccurate (for the Gov. and Meacham to say) they weren't included."
Earlier this year, Cargill said, he wrote a letter to Henry inviting him to conduct weekly meetings with legislative leaders.
"I wrote Gov. Henry a hand-written letter and invited him to have weekly meetings with legislative leaders," Cargill said. "The governor declined those meetings, saying he only wanted to meet as needed. It's very ironic for him to now say we excluded him."
Yet while Cargill urged Henry to sign the full proposal and described the budget as "a positive achievement for the state" he did leave room for negotiation.
"This bill isn't set in stone," Cargill said Monday afternoon. "We still have a reconciliation process. This is just a safety net. It's not the final product or end game of the Legislature."
Sill, both Henry and Meacham described the current proposal as "flawed."
"The flaws in this process and the $7 billion budget bill have been well documented by the executive branch and members of the House Democratic Caucus," the governor said.
Cargill countered, saying HB 1234 is "a historic measure" which represents "the first time the state has met" its "fund education first" deadline.
"The only substantive claims made by the state treasurer have been refuted point by point," Cargill said. "For example, the Stars program, that's wrong. That program is an ongoing program."
Last week, Meacham said the bill didn't fully pay for a $3,000 pay increase for teachers, and only gave the Department of Corrections enough supplemental revenue to operate for another 30 days. Meacham said he urged Henry to veto "almost all" of the bill's 2008 general appropriations budget.
Should that happen, Cargill said, House leaders "would have to look" at the governor's action. "A veto would certainly not be in best interest of the state," Cargill said. "This bill was done in a bipartisan fashion."
Henry, Cargill said, also would have a hard time sustaining his veto.
"We're pleased that a majority of the House Democratic caucus voted for the measure," he said. "I think it's very difficult for those who voted for the budget to turn and now flip-flop because the governor told them to.
Sunday, March 4, 2007
House passes bill to expand OHLAP
OKLAHOMA CITY -- Less than a week after the Oklahoma Senate passed legislation to provide a stable revenue source for a popular scholarship program currently out of money, the Oklahoma House of Representatives voted 75-25 to expand that same program.
Both measures -- one by a Republican House member and the other by the Senate's Democratic leader -- come on the heels of an announcement made earlier this month saying the scholarship program had exhausted its funding.
Originally known as the Oklahoma Higher Education Access Program (OHLAP) and now called "Oklahoma's Promise," the program pays the tuition of college students from families earning less than $50,000 per year. To quality, a student must take a rigorous college curriculum, maintain a 2.5 grade point average and exhibit good behavior.
However, the scholarship's popularity has proven difficult for lawmakers.
Growing from just a few hundred students in the early 1990s, OHLAP is expected to cost $18 million for the 2006-07 year and more than $41.7 million by 2007-08. By 2010 program costs are expected to exceed $60 million per year.
Currently, about 15,000 students are attending college on Oklahoma's Promise scholarships. More than 30,000 middle and high school students have enrolled in the program.
Earlier this month, state regents warned lawmakers of a potential funding shortfall for the current semester and temporarily suspended "any further payments of claims for spring semester scholarship awards."
Following the regents' announcement, Senate Pro Tempore Mike Morgan, D-Stillwater, pushed legislation through the Senate to create a permanent funding source for the program.
Senate Bill 820 requires the Oklahoma State Regents for Higher Education to certify the amount needed to fund the program in the coming fiscal year each November. The funds would then be set aside when the State Board of Equalization meets in December and February.
"This legislation will assure that every student who qualifies for an Oklahoma's Promise scholarship will receive their scholarship," he said.
In addition, Morgan said lawmakers would work to ensure the program is funded for the current year.
"I am confident the Legislature will provide a supplemental appropriation and these students will receive their scholarships. Passage of this legislation will mean we won't have to have this discussion in the future. Oklahoma's Promise scholarships will get funded first," he said.
Morgan's measure passed the state Senate 47-0.
On Monday, the Oklahoma House of Representatives expanded the program.
House members voted 75-25 for House Bill 1299, by Rep. Randy Terrill, which adds students schooled at home to those eligible for an Oklahoma's Promise scholarship.
Terrill estimated the cost of adding home schooled students to the system at $69,000 for the next fiscal year, and $348,000 by FY 2010.
"It's only fair that all Oklahoma students have the chance to apply for these scholarships," Terrill, R-Moore, said. "There's no reason to discriminate against any qualified student and every new college graduate we generate in Oklahoma is a key component of future economic growth and job creation."
Still, lawmakers remain concerned about expanding the program further.
Earlier proposals to increase the program's income level from $50,000 to $75,000 have failed to make it to the governor's desk.
"I don't think anyone knows how it will go," said Robin Maxey, a spokesman for Morgan. "All of those things will come down to finding the money. There are a number of issues like that around here right now, and it will all depend on budget negotiations."
While Maxey said Morgan will "look at all options" to send more Oklahoma kids to college, the state's budget is limited. "Again, it's all about priorities," he said.
Members of both houses have until this Thursday to act on legislation originating from that house. Next week, Terrill's bill will go to the Senate for action, while Morgan's proposal will be reviewed by House members.
Both measures -- one by a Republican House member and the other by the Senate's Democratic leader -- come on the heels of an announcement made earlier this month saying the scholarship program had exhausted its funding.
Originally known as the Oklahoma Higher Education Access Program (OHLAP) and now called "Oklahoma's Promise," the program pays the tuition of college students from families earning less than $50,000 per year. To quality, a student must take a rigorous college curriculum, maintain a 2.5 grade point average and exhibit good behavior.
However, the scholarship's popularity has proven difficult for lawmakers.
Growing from just a few hundred students in the early 1990s, OHLAP is expected to cost $18 million for the 2006-07 year and more than $41.7 million by 2007-08. By 2010 program costs are expected to exceed $60 million per year.
Currently, about 15,000 students are attending college on Oklahoma's Promise scholarships. More than 30,000 middle and high school students have enrolled in the program.
Earlier this month, state regents warned lawmakers of a potential funding shortfall for the current semester and temporarily suspended "any further payments of claims for spring semester scholarship awards."
Following the regents' announcement, Senate Pro Tempore Mike Morgan, D-Stillwater, pushed legislation through the Senate to create a permanent funding source for the program.
Senate Bill 820 requires the Oklahoma State Regents for Higher Education to certify the amount needed to fund the program in the coming fiscal year each November. The funds would then be set aside when the State Board of Equalization meets in December and February.
"This legislation will assure that every student who qualifies for an Oklahoma's Promise scholarship will receive their scholarship," he said.
In addition, Morgan said lawmakers would work to ensure the program is funded for the current year.
"I am confident the Legislature will provide a supplemental appropriation and these students will receive their scholarships. Passage of this legislation will mean we won't have to have this discussion in the future. Oklahoma's Promise scholarships will get funded first," he said.
Morgan's measure passed the state Senate 47-0.
On Monday, the Oklahoma House of Representatives expanded the program.
House members voted 75-25 for House Bill 1299, by Rep. Randy Terrill, which adds students schooled at home to those eligible for an Oklahoma's Promise scholarship.
Terrill estimated the cost of adding home schooled students to the system at $69,000 for the next fiscal year, and $348,000 by FY 2010.
"It's only fair that all Oklahoma students have the chance to apply for these scholarships," Terrill, R-Moore, said. "There's no reason to discriminate against any qualified student and every new college graduate we generate in Oklahoma is a key component of future economic growth and job creation."
Still, lawmakers remain concerned about expanding the program further.
Earlier proposals to increase the program's income level from $50,000 to $75,000 have failed to make it to the governor's desk.
"I don't think anyone knows how it will go," said Robin Maxey, a spokesman for Morgan. "All of those things will come down to finding the money. There are a number of issues like that around here right now, and it will all depend on budget negotiations."
While Maxey said Morgan will "look at all options" to send more Oklahoma kids to college, the state's budget is limited. "Again, it's all about priorities," he said.
Members of both houses have until this Thursday to act on legislation originating from that house. Next week, Terrill's bill will go to the Senate for action, while Morgan's proposal will be reviewed by House members.
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