Oklahoma State Senator Micheal Bergstrom provides information about issues of concern to his constituents, including updates on legislation. He also offers opinions on matters ranging from politics to public policy, from recent news stories to matters of faith.
Tuesday, December 19, 2017
Tuesday, November 7, 2017
Statesmanship Please: Fixing the budget hole
Oklahoma State Senate
Senator Micheal Bergstrom
Senate District 1
November 7, 2017
Statesmanship Please
Capitol Considerations by Senator Micheal Bergstrom
Capitol Considerations by Senator Micheal Bergstrom
What
should have been an opportunity for statesmanship has spiraled into a comedy of
politics. The Senate, once again, is trying to fix that.
After
the Oklahoma Supreme Court overturned the cigarette fee that was passed by the
legislature last session, the state found itself in a $215 million budget hole
with three agencies (Department of Mental Health
and Substance Abuse Services, the Oklahoma Healthcare Authority and the Department
of Human Services) facing a more
than $70 million budget shortfall each.
The
governor called the legislature into special session not only to fill the
shortfall but to tackle other issues including a teacher raise, sales tax on
commercial vehicles, and ways to avoid future budget failures.
Okay.
Next
the governor laid out a “Grand Bargain” with a myriad of tax increases while
offering no real efficiencies or spending cuts.
It
was a disaster.
After
weeks of negotiations, the House and Senate leadership came up with what has
been termed the “A-plus Budget Proposal,” which includes a $1.50 tax increase
on cigarettes as well as increased taxes on other tobacco products, a six cent
per gallon increase on motor fuels, a raising of the gross production tax (GPT)
on oil and gas from two to four percent. There are also budget cuts for many
agencies in the package.
The
House asked the Senate to request the House run the package, which includes
teacher pay raises next year.
The
Senate passed a resolution requesting the House run the package.
Following
an interesting round of musical chairs in its JCAB (House Joint Committee on
Appropriations and Budget), where multiple members walked the vote (walked away
and didn’t vote) and nearly all Democrats voted nay, the House failed to pass
the revenue bill out of committee.
The
Department of Human Services (DHS) announced that the budget failure will force
them to discontinue programs that help keep the elderly and those with
developmental disabilities in their homes, and it has been discovered that the
Department of Health has basically been running two sets of books and deceiving
everyone about its fiscal condition. It now needs another $30 million.
So
what happened next?
The
House offered proposals that will use all of the state’s emergency funds and
will leave us with a more than $600 million hole to fill in the next budget. It
also doesn’t fix the funding issue at the Health Department.
We,
in the Senate, decided to act like statesmen and stateswomen.
Despite
the fact that many of us have issues with various aspects of the A-plus plan,
we amended a bill the House had sent us previously with the language of the
A-plus revenue bill with a truly bipartisan vote and we sent it back to the
House asking them to put it up on the board and vote on it.
As I write this afternoon, the House has run the original bill in their JCAB committee earlier and voted 19-6 to put it up for a vote on the floor. I hope that is what happens.
I welcome your questions and
concerns, so please feel free to contact my office at the State Capitol if you
would like to discuss a particular issue or problem. Our office can be reached by phone at
405-521-5561 or by email at bergstrom@oksenate.gov. If you visit the Capitol, we are located in
Room 527A.
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Tuesday, October 24, 2017
Supreme Court Strikes Down Electric Vehicle Fee
Senator Bergstrom issues statement on Supreme Court’s ruling on electric,
hybrid vehicle tax
On Tuesday, the Oklahoma Supreme Court struck down, in a 6-3
decision, a fee that would have been charged to drivers of electric
and hybrid vehicles, declaring it an unconstitutional tax.
Senator Micheal Bergstrom, R-Adair,
agrees with the court’s decision.
“The Oklahoma Supreme Court made the right
decision here,” said Bergstrom, “but it will cut this year's
revenue by about another $400,000, which probably means more cuts in
the budget.”
Bergstrom argues that since the legislation was
clearly intended to replace revenue with the $100 fee on electric
vehicles and $30 on hybrids, it should have required the same 75
percent support in both the House of Representatives and the Senate
as required by the state constitution (as amended by the voters in
1992 with State Question 640) for tax increases.
“Those who drive electric vehicles on
Oklahoma roads should help pay to maintain those roads, but they
don’t since they do not pay fuel taxes like everyone else,”
Bergstrom said. “However, this bill should have been passed as a
tax and not as a fee.”
-END-
Friday, October 13, 2017
More To Governing Than Just Raising Taxes
Capitol Considerations
by Senator Micheal Bergstrom
There is more to governing than just raising taxes.
Now don't misunderstand me, Oklahoma has to pay its bills, but just opening the tax spigot is not the answer.
Recent press reports revealed that Governor Fallin presented the state's legislators her grand bargain, a package of more than $560 million in new taxes so the state can pay its bills. It is neither grand nor a bargain. It also does not align with her stated goals in her call of the legislature into special session.
(The special session was recessed after three days and, hopefully, will only be returning when there is a realistic proposal for legislators to vote on, which means the cost to taxpayers is also on hold.)
In the governor's call, she wanted to address "the immediate budget shortfall created by the loss of the $215 million cigarette fee revenue" due to a state supreme court decision overturning the fee. She called for long-term solutions for future budget shortfalls, "consolidation and other efficiencies in all areas of state government," a revision of the 1.25 percent sales tax on commercial vehicles, and a teacher pay raise.
All excellent objectives. So how did the grand bargain address those matters?
Her plan called for taxing all forms of tobacco at higher rates, increasing the initial gross production tax (GPT) on new wells from 2 percent to 5 percent, raising the income tax rate on those earning $250,000 or more, raising motor fuel taxes six cents a gallon, taxing a variety of "luxury services," and eliminating the wind manufacturer tax exemption.
Almost all of these taxes require a 75 percent vote in both houses to pass.
And by the way, for those who see raising the GPT as the salvation for our budget, raising it to 5 percent adds just over $21 million to the state's coffers and taking it all the way to 7 percent would only yield about $35 million. It is not the panacea many are claiming it to be.
Still, it would seem that the governor's long-term solution for future budget shortfalls is to raise taxes. The only efficiency in her plan is a down the road forced consolidation of the administrations of smaller schools throughout the state.
Where are the "efficiencies in all areas of state government"?
Yes, we need to pay our bills, but this plan is not the solution.
I welcome your questions and concerns, so please feel free to contact my office at the State Capitol if you would like to discuss a particular issue or problem. Our office can be reached by phone at 405-521-5561 or by email at bergstrom@oksenate.gov. If you visit the Capitol, we are located in Room 527A.
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Friday, September 29, 2017
Is Everyone Feeling Special?
Capitol Considerations
by Senator Micheal Bergstrom
The special session has set sail.
The question is, will this ship accomplish its mission, or be so tossed and battered by the storms of political squabbling that it returns to port with nothing in its holds?
On Monday, the Governor of the Great State of Oklahoma had the legislature convene for an extraordinary session to deal with the $215 million budget shortfall created by the Oklahoma Supreme Court’s decision to overturn the cigarette fee. (A good decision, by the way.) She also requested that we deal with inefficiencies in state government, clarify exemptions on the new 1.25 percent sales tax on vehicles, come up with the money for a teacher pay raise, and work on solutions to problems in the budgeting process.
On Wednesday we recessed until further notice with nothing to show for our efforts.
Well, that’s not entirely true. While many are complaining about the money being spent on the special session, the first two days were necessary and expected to be uneventful. Oklahoma’s constitution does not allow the legislature to vote on bills during the first two days of session. So now those days are out of the way.
Anything else to report?
Not much.
I have filed two bills for this session. The first is a soft cap on the payouts for wind generation tax credits. That is, electricity produced from zero-emission facilities. The cap begins at $50 million for the first two years and gradually steps up in the following years until the credit is paid in full. In other words, if there are $75 million in credits claimed during those years, they would receive 67 percent of the claim, and then use the remaining credit in future years.
This limits the state’s liability so we can budget without fear of surprises (since it is possible for claims to exceed $100 million a year), yet still pay over time the full amount of credits promised the wind industry.
The second bill cuts by 25 percent, for two years, many business tax credits.
Both bills are works in progress, but the idea is to help us fund necessary government services while keeping the budget in check, at least a little.
Other bills have been filed that I am hoping leadership will consider in order to try to get the budget even more under control. Next regular session I hope we will be returning to line item budgeting to force department heads to make cuts that are appropriate, and not the ones that cause pain to the state’s citizens.
Hopefully common sense will prevail during this session.
I welcome your questions and concerns, so please feel free to contact my office at the State Capitol if you would like to discuss a particular issue or problem. Our office can be reached by phone at 405-521-5561 or by email at bergstrom@oksenate.gov. If you visit the Capitol, we are located in Room 527A.
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Thursday, September 21, 2017
Budgets are an issue, Federal and State
Capitol Considerations
by Senator Micheal Bergstrom
Budgets.
I’m spending a lot of time looking at budgets.
Here in Oklahoma there is the state budget, which must now be balanced since the Oklahoma Supreme Court has overturned the cigarette fee that was passed during the last legislative session. It is a $215 million hole, and it is a hole in funding to three agencies, which, when we consider the loss of matching federal funds, will result in a $500 million budget failure.
For those agencies, Oklahoma Health Care Authority (OHCA), Oklahoma Department of Mental Health and Substance Abuse Services (ODMHSAS), and the Oklahoma Department of Human Services (OKDHS) and for the Oklahomans these agencies serve, this will be a devastating shortfall if not corrected. That is why we will be returning for a special session on September 25.
I have also been looking at the federal budget.
From September 12-15, I was in Phoenix, Arizona attending the Balanced Budget Amendment (BBA) Planning Convention as a delegate. This gathering prepared the rules and guidelines for a future Article V Convention of the States for proposing an amendment.
Just one amendment. A balanced budget amendment.
The national debt just surpassed $20 trillion and it is projected to increase by a trillion dollars a year for the next decade. We are borrowing trillions of dollars from foreign countries. We have had the Federal Reserve Bank printing money to pay our bills. We have looted all of our Federal trust and pension funds, including our military retirement funds, to pay for our government. This is just not sustainable.
Since Congress has failed to restrict its spending, it is up to the states to act, and that is what we are doing. Article V of the United States Constitution provides two methods for proposing amendments to the Constitution. It may be either a resolution adopted by two-thirds of both houses of Congress, or by the states at a convention called for that purpose. At this time 27 states, including Oklahoma, have signed on to the convention, with seven more needed for the convention to be called.
In Phoenix we created a model set of rules, set up a standard for the next convention, and re-established a mechanism for the states to come together and exercise their authority to restrain the federal government.
We are on the path to a financial disaster that will make the Great Recession of 2008 seem like an economic speed bump in comparison.
That is why states like Oklahoma are stepping forward to force Congress to change its behavior. We must do this to protect our children, grandchildren and future generations from a crippling national debt, and I’m proud to be a part of this process.
In my next column I will address the other budget I’m trying to understand and the special session we are preparing for in the Oklahoma legislature.
I welcome your questions and concerns, so please feel free to contact my office at the State Capitol if you would like to discuss a particular issue or problem. Our office can be reached by phone at 405-521-5561 or by email at bergstrom@oksenate.gov. If you visit the Capitol, we are located in Room 527A.
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Thursday, September 14, 2017
With Federal Budget Out of Control, States Move Toward Article V Amendment
Bergstrom attends Balanced Budget Amendment Planning Convention
OKLAHOMA CITY – Sen. Micheal Bergstrom is in Phoenix, Arizona as a delegate attending the Balanced Budget Amendment (BBA) Planning Convention, which commenced on September 12 and is scheduled to complete its work on September 15. The gathering is preparing the rules and guidelines for a future Article V Convention of the States for proposing amendments.
“The national debt just surpassed $20 trillion this week, and it is projected to increase by a trillion dollars a year for the next decade. This is just not sustainable,” said Bergstrom, R-Adair. “Since Congress has failed to restrict its spending, it is up to the states to act, and that is what we are doing.”
Article V of the United States Constitution provides two methods for proposing amendments to the Constitution. It may be either a resolution adopted by two-thirds of both houses of Congress, or by the states at a convention called for that purpose. Currently, 27 states, including Oklahoma, have signed on to the convention, with seven more needed for the convention to be called.
“What we are preparing for is a convention which will focus on only one amendment, one that will limit our federal government from spending more than it takes in,” Bergstrom said. “At this time, we are spending more than our nation’s gross domestic product (GDP), which is the size of the U.S. economy. We are borrowing trillions of dollars from foreign countries. We have had the Federal Reserve Bank printing money to pay our bills. We have looted all of our Federal trust and pension funds, including our military retirement funds, to pay for our government.”
“We are on the path to a financial disaster that will make the Great Recession of 2008 seem like an economic speed bump in comparison,” added Bergstrom.
In 1990, foreign entities owned six percent of the nation’s gross debt. That has climbed to more than 34 percent. The United States is beholden to China, Japan, Russia and many other countries for loans that finance the government.
“Congress has put our nation in a dangerous position, where we are subject to the political influence of other nations over U.S. foreign and trade policy because of its willingness to run up an insane amount of debt and take money from nations who do not have our best interests in mind,” Bergstrom said. “That is why states like Oklahoma are stepping forward to force Congress to change its behavior. We must do this to protect our children, grandchildren and future generations from a crippling national debt, and I’m proud to be a part of this process.”
The Oklahoma delegation consists of state Senators Micheal Bergstrom, Nathan Dahm and Julie Daniels as well as Reps. Mark Lepak and John Bennett, former Rep. Gary Banz and attorney Mark Nuttle.
-END-
For more information, contact:Sen. Bergstrom: (405) 521-5561
Thursday, August 24, 2017
Senator Bergstrom joins Congressman Mullin and Representative West in addressing area Realtors
Senator Bergstrom joins Congressman Mullins,
Representative West as local panelists
Representative Josh West, Chuck Perry, Senator Micheal Bergstrom and Congressman Markwayne Mullin |
State
Senator Micheal Bergstrom joined Congressman Markwayne Mullin and
Representative Josh West as panelists for the Northeast Board of
Realtors’ meeting held Tuesday, August 22 in Grove. They were
invited by ReMax Grand Lake owner and broker, Chuck Perry to weigh in
on state and federal issues affecting real estate in Oklahoma.
"Gatherings
like this give me an opportunity to be made aware of the needs of my
constituents," said Bergstrom, R-Adair. "As someone who is
focused on economic development and the areas of business, commerce
and tourism, I am always looking for suggestions on how to make my
district and the state more successful in these areas. Gatherings
like this help me to hear those ideas.”
Bergstrom
added he appreciated Perry’s invitation to participate in the forum
with his fellow legislators, noting the importance of staying aware
of the issues affecting his district and others around the state.
"I
appreciate having the opportunity to discuss the issues of our state
and my district. This forum provided a chance for me to hear about
how federal regulations are reducing opportunities for Oklahomans,”
said Bergstrom.
For
more information, contact Sen. Micheal Bergstrom at (405) 521-5561 or
by email at bergstrom@oksenate.gov.
-END-
Thursday, August 10, 2017
Oklahoma Supreme Court Strikes Down Cessation Fee
Sen.
Bergstrom issues statement on ruling on smoking cessation fee
Senator
Micheal Bergstrom, R-Adair, issued a statement Thursday regarding
the Supreme Court’s ruling striking down the cigarette fee and
declaring it an unconstitutional tax:
"As
I sat in the courtroom and listened to the arguments in the Oklahoma
Supreme Court on Tuesday, I came to the conclusion that the smoking
cessation fee we passed last session was in serious trouble. This
morning the court ruled that the fee was unconstitutional.
“The
court made the right decision. That means, however, that $215 million
must be cut from the budget, primarily from the Department of Human
Services, the Department of Mental Health and Substance Abuse
Services and the Oklahoma Health Care Authority, or we have a special
session to fix this.
"I
expect we will go into a special session. This is too important. It
must be addressed, and preferably sooner than later."
-END-
Monday, August 7, 2017
Confused By Labels
Capitol Considerations
by Senator Micheal Bergstrom
Confused By Labels
Here
are three bills I voted for that are being labeled as liberal.
TANNING
In
SB 765 minors are restricted from using indoor tanning facilities.
Skin
cancer is increasing dramatically, especially in younger people.
Tanning beds are one of the causes. We don't let minors buy
cigarettes because we want them to be adults before they opt to start
breathing in carcinogens, so why would we not want a similar
restriction to help keep our children from getting melanoma?
Some
argue that by voting for this bill lawmakers were saying, "people
can't handle their own decisions and the state needs to protect them
from their own stupidity." Would they be upset if a bill were
proposed to allow minors to decide if they want an abortion?
There
are times when we need to restrict access of minors to products or
services.
REAL
ID
HB
1845 brings Oklahoma into compliance with the federal REAL ID Act. It
allows Oklahoma residents to get a drivers license for use in
boarding airplanes and entering military facilities. Once the federal
law is fully implemented you will either have to have a passport or a
REAL ID compliant license to board a plane. Those who work at Fort
Sill or Tinker AFB or other military installations will have to have
this to go to work.
The
bill allows Oklahoma citizens to opt out and get a non-compliant
license.
AUDITING
Out-of-state
businesses doing business in Oklahoma often fail to accurately report
their income or collect appropriate taxes in our state. HB 1427
approves auditors to inspect the books of those companies. When other
states started doing this, businesses suddenly chose compliance
rather than face stiff penalties. This should bring tens of millions
of dollars to the state. Money that is owed Oklahoma.
I
consider these bills to be relatively conservative and a common sense approach to the issues. What do you think?
I
welcome your questions and concerns, so please feel free to contact
my office at the State Capitol if you would like to discuss a
particular issue or problem. Our office can be reached by phone at
405-521-5561 or by email at bergstrom@oksenate.gov.
If you visit the Capitol, we are located in Room 527A.
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Friday, July 21, 2017
DHS, Sexual Predators & Finding Cuts
Capitol Considerations by Senator Micheal Bergstrom
DHS,
Sexual Predators & Finding Cuts
DHS
CUTS
The
Oklahoma Department of Human Services (DHS) director, Ed Lake, is
proposing some significant cuts in services despite the state Senate
having sent him a clear message when it passed Senate Bill 848 by a
42-3 vote telling him to make reductions in administrative areas if
there was a revenue shortfall.
For
the record, DHS received a budget increase, not a cut, from the
legislature, and there has not been a revenue failure.
Still,
the director contends he is going to have to make about $30 million
in reductions. Even if that is the case, he has opted to cut in some
areas that he should not. He does have some flexibility in other
areas of his budget.
Director
Lake is proposing cuts in senior nutrition that will eliminate
277,000 meals and close 30 nutrition centers, and he plans to reduce
the funding for developmental disabilities services which helps keep
those with disabilities in their homes. An example of a program that
will be hurt by this is the Home of Hope in Vinita.
Such
reductions in funding seem short-sighted.
It
is my hope that Director Lake will reconsider these cuts.
(After finishing this column, news reports came out that some funds are being returned to agencies because a projected revenue failure did not occur. OKDHS is receiving $4.2 million, almost enough to fully fund the cuts cited above, if the Director chooses to do so. I suggest my readers contact OKDHS and urge him to use the funds in that way, and restore the funding to senior nutrition and developmental disability services.)
SEXUAL
PREDATORS
Senator
James Leewright and Representative Kyle Hilbert have authored an
update to House Bill 1124 to include the residency of the victim of a
sex crime to the list of places that are protected by a “zone of
safety”. Currently the “zone of safety” is defined as a 500 ft.
area around locations that sex offenders are not allowed to loiter.
However, if the bill passes, the zone around a victim’s residence
could be extended to 1000 ft.
Existing
statutes are intended to protect potential victims from sexual
predators, but this bill’s intent is to protect those who have
already been victimized. As the bill is written, it would require
the predator remain, or perhaps even live, at least 1,000 feet from
the victim. I hope that buffer zone is extended even further as the
bill moves forward. For some people, it would be better if the buffer
was 1,000 miles and not just a few minutes’ walk.
FINDING
CUTS
In
my last column, I asked my constituents to offer specific suggestions
on where waste exists in the state's agencies' budgets. I received
two responses. One recommended I speak with State Auditor Gary Jones.
I have done this, several times. The second response from a gentleman
from Vinita provided solid, specific suggestions that I plan to look
into. Thanks. I'm always open to good ideas.
I
welcome your questions and concerns, so please feel free to contact
my office at the State Capitol if you would like to discuss a
particular issue or problem. Our office can be reached by phone at
405-521-5561 or by email at bergstrom@oksenate.gov.
If you visit the Capitol, we are located in Room 527A.
-30-
Wednesday, July 19, 2017
Victims of Sexual Assault Should Not Have To Reside Near the Predator!
Adair legislator supports bill to further protect abuse victims
OKLAHOMA CITY – A bill that closes a loophole in state statute allowing sex offenders to reside near their victim has the full support of Adair state senator Micheal Bergstrom. HB 1124, authored by Rep. Kyle Hilbert and Sen. James Leewright, aims to amend Oklahoma law to include the residency of the victim of a sex crime to the list of places that are protected by a “zone of safety”. Under current Oklahoma statute, the “zone of safety” is defined as a 500 ft. area around locations that sex offenders are not allowed to loiter. However, if the bill passes, the zone around a victim’s residence could be extended to 1000 ft.
“Existing statutes are intended to protect potential victims from sexual predators, but this bill’s intent is to protect those who have already been victimized, who have been molested, been harmed and suffered at the hands of one of these offenders,” Bergstrom said.
The loophole was discovered when convicted Oklahoma sex offender Harold English moved into a home next door to his victim, Danyelle Dyer. Since that time, Dyer has advocated for a change in state law.
“I was surprised to learn that 44 other states currently face a similar loophole in their own statutes. As the bill is written, it would require the predator remain, or perhaps even live, at least 1,000 feet from the victim. I hope that buffer zone is extended even further as the bill moves forward through the legislative process,” Bergstrom said. “For some people, it would be better if the buffer was 1,000 miles and not just a few minutes’ walk. I support Senator Leewright and Representative Hilbert’s work on this bill. I’m glad to see them taking steps to protect victims from further harm.”
HB 1124 is set to be heard when the 2018 session gets underway, beginning in committee and working its way through the legislative process.
-END-
Wednesday, June 14, 2017
Taking Control of State Spending: You Can Help
Capitol Considerations by Senator Micheal Bergstrom
Taking
Control of State Spending
When
it came to the state's budget this past session, whether it was in
the phone calls to my office or the emails I received, there were two
things I heard over and over:
"You
must raise taxes!"
"You
must cut spending!"
Generally
speaking, it was a call to raise taxes and spend more, or it was a
demand that spending be cut, and sometimes cut taxes.
Let's
focus on the idea of cutting spending.
There
are some things the state government must oversee and funds must be
allocated for them. Education, public safety, child advocacy and
protection, our prison system, senior nutrition, roads and bridges
and a wide variety of other programs must be sustained and properly
funded.
But,
at what levels must each program be sustained, and what is proper
funding?
Are
there programs that should be eliminated or agencies that should be
merged?
Are
there duplicative services that can be eliminated?
How
can we make an agency or program more efficient and eliminate waste?
I
am no expert on the budgets of all the programs and agencies in the
State of Oklahoma's government, though I am continually striving to
learn more.
So
here's my request to you.
Help
me.
Don't
just complain that the state needs to "live within its means,"
a refrain I saw in many emails, but tell me how to get there. Agency
budgets are available online. Dig into your favorite areas of the
state's budget and tell me line items to eliminate, programs that
need to be reduced or eliminated, and other ways to cut spending.
Give
me concrete, specific examples I can investigate and possibly take
action on. Make a logical argument for your position.
Who
knows how many bills I could author to cut waste, with your help.
I
welcome your questions and concerns, so please feel free to contact
my office at the State Capitol if you would like to discuss a
particular issue or problem. Our office can be reached by phone at
405-521-5561 or by email at bergstrom@oksenate.gov.
If you visit the Capitol, we are located in Room 527A.
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A Call for DHS to NOT play politics
Press Release on June
12, 2017
Bergstrom
urges OKDHS
to use stalled legislation as agency budget guide
OKLAHOMA
CITY – Following a challenging legislative session where the
nearly $1 billion budget shortfall was a top concern, State Senator
Micheal Bergstrom sent a letter this week to the director of the
state Department of Human Services (DHS), urging the agency to
continue to protect the programs outlined in Senate Bill 848, even
though the legislation stalled before lawmakers adjourned for the
year.
The
measure passed in the Senate with a 42-3 vote, but time ran out in
the session before it could be passed in the House. Regardless,
Bergstrom (R-Adair) is requesting DHS director Ed Lake to use the
components of SB 848 as a “common sense” guide to prioritize
spending as he leads the agency into the next year. In his letter
to Lake this week, Bergstrom urges a reduction in administrative
expenses, and not cuts to essential services, in the event of a
revenue shortfall this year.
“I
commend Director Lake and his staff for their
diligence in working to meet the needs of Oklahoma citizens,”
Bergstrom said. “The job of each agency, as well as that of the
legislature, is to meet the needs of our citizens, especially those
who are most vulnerable. With that in mind, it is critical that
agencies like DHS do everything possible to protect the funding and
implementation of the services referenced in SB848, such as, but not
limited to, Senior Nutrition, Child Welfare Services, Developmental
Disability Services, the Pinnacle Plan, and the Child Abuse
Multidisciplinary Account. These programs have far-reaching benefits
to our families and communities.”
-END-
Sunday, June 4, 2017
Issues in the wake of Oklahoma's newest budget
Capitol Considerations
by Senator Micheal Bergstrom
When
the Oklahoma legislature locked down the budget on Friday, May 26, it
may have filled a budget hole for the fiscal year beginning in July,
but it left a few problems in its wake.
As
things stand right now . . .
*
Legislators are facing a built-in budget deficit next session of $200
million to $400 million.
*
Oklahoma's prison system is at 109 percent capacity.
*
We approved fees or taxes that may not be constitutional.
Since
we failed to make significant budget cuts and did not put in place
sufficient new, recurring revenue streams, next year we will be
facing another budget shortfall, although, hopefully, not as
difficult to deal with as this year's.
We
did make progress in the area of criminal justice reform, but we have
a long way to go. Prison overcrowding, if it continues, is going to
be opening the door for a Justice Department investigation, and
lawsuits. The Department of Corrections is calling for three more
prisons while the public seems to want a reduction in the number of
nonviolent criminals going to prison. We must deal with this.
Then
we have our taxes and fees.
Needless
to say, when voters passed State Question 640 years ago, they wanted
to limit the legislature's ability to raise taxes. It's worked. With
a 75 percent super-majority vote required to pass a tax increase in
both chambers, doing so is almost impossible.
The
problem is, that after years of significant cuts and a series of
revenue failures, there were some agencies we couldn't cut. I'll
admit that after just months on the job, I was not expert enough to
know where to seek cuts in critical agencies like Common Education,
Department of Corrections, Department of Public Safety and the
Department of Human Services.
So
we either have to pass fees or remove exemptions from existing taxes,
since that only requires a 50 percent plus one vote.
One
of the increases we ended up with is SB 845. This is a new $1.50
cessation fee on each pack of cigarettes. We want smokers to quit and
young people to not start, so we are raising the cost of smoking. It
doesn't hurt that it will help fill about $215 million of our budget
hole.
I
voted for the bill, and am sorry I did.
Originally
this was going to be a tax, but it couldn't get passed in the House
of Representatives, and suddenly it appeared as a fee. Now I don't
have a problem with it as either a tax or a fee since it's going
toward health care and will help pay for the treatment of Oklahoma
citizens with smoking related diseases.
The
problem is whether or not it is constitutional. If the courts see the
fee as a tax then the bill will be tossed out, that funding will be
gone, and our shortfall will be even greater.
Obviously,
we could have and should have done better.
I
welcome your questions and concerns, so please feel free to contact
my office at the State Capitol if you would like to discuss a
particular issue or problem. Our office can be reached by phone at
405-521-5561 or by email at bergstrom@oksenate.gov.
If you visit the Capitol, we are located in Room 527A.
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