By Rep. Mike Sanders
The Oklahoma Board of Equalization met this week to certify revenue available for the Fiscal Year 2019 state budget. The board projected we will have a $167 million gap between what was appropriated for FY18 and what will be available for FY19. That is so much better than the $800 million gap the governor predicted in November, and that amount can be made up by using cash already on hand. In addition, we still have several months before we must sign an appropriations bill for FY19, and that gives more time for revenue to continue to improve.
In January, we entered the second year of positive revenue growth for the state with gross receipts to the treasury up 12 of the past 13 months and up 15 percent for January and 7.5 percent for the year. Hiring continues to be up, and most sectors of the economy continue to show improvement.
This revenue picture gives us hope of accomplishing our continued push for a teacher pay raise.
This week, the House passed three bills in special session to help us close out the FY18 budget. We’ve been working on this budget for more than a year, and we simply had to complete it and more toward the future. The first bill appropriates money for state agencies for the remainder of the fiscal year, cutting less than 1 percent from all budgets. The second bill directs the Department of Human Services to fully fund the ADvantage Home Waiver and other home-bound health services for the elderly and disabled adults as well as senior nutrition programs and foster care. The third bill supplements federal funding cuts to our physicians’ training programs at the state’s medical colleges. Once these bills pass the Senate and are signed by the governor, we can end our second special session and focus solely on the regular session and the FY19 budget.
In other news, House Bill 3330, which I authored, passed the House with a vote of 87-0. This bill adds family home child care centers to the list of places protected from sexual predators. These people will now not be able to move within 2,000 square feet of these facilities. These smaller child care centers were inadvertently left off the list of protected places when the Oklahoma Child Care Facilities Licensing Act was signed into law several years ago. This new law will protect children and childcare workers.
I also co-authored House Bill 1340, which should be heard soon on the House floor. This bill will pay a stipend to our state retirees, including teachers, firemen, police, highway patrol troopers and others. This benefit will help our retirees with cost of living increases while maintaining the adequacy of their respective retirement funds. I appreciate the service of these dedicated retirees, and this bill is a way to show them support.
I’ll keep you updated on these and other measures as they move through the legislative process.
By Rep. Mike Sanders
The Step Up Oklahoma plan was brought to a vote on the House floor on Monday. It failed to get the supermajority three-fourths vote required by the state Constitution to pass, ending with a vote of 63-35. It could be placed on a future state ballot for a vote of the people.
The plan would have raised revenue in a variety of ways to fund $5,000 teacher pay raises and to shore up state health care services for those most in need. A portion of the money would have gone towards roads and bridges.
While it was disappointing to some that the plan failed, I’ve explained in previous columns that there were concerns by many on both sides of the political aisle with the amount of revenue sought and the sources from which it would be derived. There are some portions of the plans that still have merit, and may be brought forward in the future. Several reform measures in the plan would give us greater oversight of agency spending; these need to pass, and I believe they will.
While this plan failed, there are several smaller revenue portions that are still being explored. These include increasing the tax on alcohol as our laws have changed to allow its sale in more venues in the future; and increasing the tax on gasoline and diesel. This hasn’t been done since the 1980s, and a small increase would still keep Oklahoma below the regional average. The money would be used to replenish transportation funds and help us build and maintain safe roads and bridges in rural Oklahoma. Portions of the money raised could go to increase pay for our teachers and to support rural health care – two issues of which I have been adamant in my support. Increasing the cigarette tax is still under consideration as well.
I want to remind everyone, we are only in the second week of the legislative session. I’m optimistic that reason, common sense and rational thought will prevail at the state Capitol. I’m not giving up, and neither should anyone else.
Next week, the Board of Equalization meets to give lawmakers a clearer look at fiscal year 2019 revenue. The numbers should be in line with the improved economic picture we’ve already seen for the past year. Last week’s state treasurer’s report showed 12 of 13 months of improved revenue, with January collections of $1.1 billion topping the same month in 2017 by 15 percent and up 7.5 percent for the past year. Unemployment is down, and economic activity in the state is increasing. These are all signs for hope.
Meanwhile, the House investigation of Health Department spending and other agency audits continues in an effort to root out all abuse and mismanagement and make sure we are running at top efficiency.
I will keep you posted about the status of the state budget and other bills as the legislative session continues. Please keep a positive attitude. There is much cause to be optimistic.
By Rep. Mike Sanders
The governor this week gave her final State of the State address, officially starting the new legislative session. As expected, she touted the Step Up Oklahoma budget initiative promoted by business and industry leaders from across the state.
There are definitely some good ideas on reform in this plan such as the formation of a government accountability office to expose waste, fraud and abuse of taxpayers’ dollars intended for core government services, as well as giving the next governor direct appointment power over the largest state agencies.
The plan also would pay for a $5,000 teacher pay raise, something I’m adamant about passing. I must ensure, however, that the plan gives all teachers in the state a raise, even those who work in school districts that don’t receive money through the state funding formula.
The plan still has some issues, and there is still room for negotiation. I’ll keep you posted as the bill progresses.
In the meantime, I’ve filed several pieces of legislation this year. I want to detail a few of those in this column, and will talk about others in the coming weeks.
House Bill 3330 would ensure sex offenders could not move to within 2,000 feet of a family childcare home serving five children or less. Previously, the law protected schools, licensed daycares, campsites and playgrounds but did not cover these smaller childcare facilities. This law closes that loophole and ensures our children will be better protected from predators.
House Bill 3329 is an addition to my House Bill 2005, which became law in 2015. The statute eliminated the 45-year-old age limit for new firefighters by giving them the ability to join a department without the requirement that they be added to the state’s pension plan. Many of these volunteers already have their own businesses, or they work in the oil field or in other lucrative careers. They were happy to volunteer without needing to receive a state pension.
Since the law’s passage, we’ve added more than 200 volunteer firefighters who protect our rural areas and are helping stem the shortage in Oklahoma. This measure is a great model to be used nationwide. One fix needs to be made, however. We need to allow paid firefighters retiring from municipal fire departments the ability to become volunteer firefighters under the pension exemption. This bill will allow local fire chiefs to determine hiring regardless of a current pension plan. This bill will add to our rural firefighter base and is a good extension to an already positive law.
Over the next few weeks, bills will be moving through the committee process. I’ll keep you updated on the progress of key legislation and the budget.
Thank you to everyone who has sent me back my annual survey. If you have not yet done this, please do so soon. I use your responses to help guide my decisions as I represent you.
By Rep. Mike Sanders
A group of business and civic leaders recently announced a combination of reforms and revenue measures they call the Step Up Oklahoma plan. Their hope is to eliminate abuse and waste in state government while raising revenue to pay for a $5,000 teacher pay raise and to fund what they consider to be core services for the state of Oklahoma.
The group behind this plan met with the governor and legislative leaders over the past several weeks. The group includes many corporate leaders as well as several large newspaper publishers as well as television and radio station owners. The plan is similar one released by the state chamber late last year.
The plan includes many reform measures, including these that I really like:
- Increase teacher pay by $5,000;
- Revise the state budget to reflect accurate numbers (all revenue sources and all expenditures – not just appropriated amounts under the purview of the Legislature);
- Establish a budget stabilization fund that would be structured similarly to an endowment where the income generated could be used to cushion the budget during economic downturns;
- Give the governor direct appointment power over the largest state agencies;
- Create an independent budget office to assist with eliminating waste.
Other suggested reforms:
- Modify term limits for lawmakers;
- Lower the supermajority required to raise revenue;
- Make the governor and lieutenant governor running mates;
- Change the process to fill Supreme Court vacancies;
- Allow voters to decide the structure of each county’s government – home rule.
Revenue-raising measures in this proposal:
- Raise the tax on cigarettes, little cigars, chewing tobacco and e-cigarettes;
- Raise gross production tax on oil and gas wells; impose a new tax on wind energy;
- Increase the price of motor fuels;
- Eliminate certain income tax deductions and loopholes and reform the tax code;
- Expand taxable gaming activities;
I want to express my appreciation and thanks to these community leaders for being willing to help Oklahoma come out of its recent recession and address budget reform. Their plan is certainly ambitious.
It must be noted that this plan could not proceed as one package deal. Several measures require constitutional changes and thereby a vote of the people through individual state questions. Another concern would be the state Supreme Court’s recent rulings on logrolling – legislation that contains more than one issue. Typically, appropriations bills are allowed to proceed under the one-topic rule, but combining revenue measures with reforms could pose a legal challenge.
I’ve talked to many lawmakers and they have concerns with measures such as the ones that remove income tax exemptions or that would raise personal income tax rates. Redoing county and municipal government under a home rule structure also brings concerns.
Oklahoma has 101 duly elected representatives and 48 senators in our state Legislature. Each represents a varied body of constituents. There has to be room for negotiation and give and take. We certainly will be reviewing this plan over the next few weeks. I’ll keep you posted on our work.
By Rep. Mike Sanders
The latest revenue reports for the state contain some very good news. Collections are up, and companies are hiring. All signs are positive for the economy.
According to the latest state treasurer’s report, December collections to the state treasury were $1 billion – up $107.9 million, or 12 percent – compared to receipts from December 2016. During 2017, gross receipts were $11.45 billion – 6.2 percent, or $667.6 million – above 2016 collections.
The state showed across-the-board growth in every major revenue stream – income tax, gross production tax, sales tax, motor vehicle taxes and other sources. Monthly receipts were up 11 out of the past 12 months.
Allocations to the state’s General Revenue Fund also are improving. November GRF allocations exceed the estimate by 14.1 percent. Fiscal-year-to-date collections are ahead of the estimate by 9.4 percent. The General Revenue Fund is used by the Legislature to appropriate money for core government services such as transportation, public safety, health care and education. So this is good news for our roads and bridges, our police and fire departments, our rural hospitals and nursing homes and our schools.
The Tax Commission attributes $24.2 million in December to new revenue resulting from legislation enacted during the last regular session. The additional revenue comes primarily from changes in sales tax exemptions and gross production incentive tax rates. The new revenue accounts for 22.4 percent of the growth in December collections compared to the prior year.
In addition, the state’s unemployment rate is down, and state jobless numbers have improved. Many companies report they are hiring. The Oklahoma Business Conditions Index shows anticipated economic growth during the next three to six months. Oil and gas prices are up as are active rig counts – important for a state still heavily reliant on energy to fund many services for our citizens. New wind projects are in the works. Retailers are reporting positive sales over Christmas.
After several years of recession and budget decline leaving gaps in funding from one budget year to the next, this sustained positive revenue and job growth is terrific news. If revenue growth continues, we could end the fiscal year with no budget hole. This is so different from the doom and gloom diet we’ve all been fed for the past year.
The Legislature will still need to consider how to pay for teacher pay raises as well as restore funding to transportation, public safety and health care. But, I can assure you that any revenue proposals put before the Legislature this year will be attached to specific reforms and will come with accountability measures for our state agencies.
I want to address the narrative that the Legislature for too long has relied on one-time funding sources to balance the state budget. It is true, that during the recent recession we relied on using our Rainy Day Fund or the state’s Special Cash Fund or some of the state’s 1,100 revolving funds to fund core services. This is not unlike a family, though, who puts money aside for emergencies. Would they rather spend that money on a new car or a family vacation? You bet, but if they need to use it to buy groceries or pay bills during an illness or a stint of unemployment, they’ll do that before they consider asking someone else to bail them out.
More work still needs to be done, but these indicators are positive and this is great news for our state.
On a final note, be on the lookout for my annual citizen opinion survey, which should reach you in the next week or two. This gives you the opportunity to tell me what issues are most important to you. Please take a few moments to fill this out when you receive it and get it back to me. I really do rely on your input to help me represent you.
By Rep. Mike Sanders
As the clocks ticks down on 2017, I can’t help but be hopeful that 2018 will be a better year for Oklahomans.
This past year presented some challenges for people in our House District, people throughout the state and for lawmakers at the state Capitol. There’s still plenty of work to do, but things already are looking better for the future.
Revenue in the state is up for 11 of the past 12 months. Employers say they are hiring – manufacturing, oil and gas, wind industries are among those increasing jobs. We’re getting some things cleaned up in our state agencies so they can operate more efficiently, saving taxpayer dollars. New leadership is in place in several areas, and light is shining bright on areas that need further restructuring.
As a new year starts, I resolve to continue working to improve area roads and bridges; to enhance public safety; to continue working towards giving our teachers and state employees a pay raise; and to protect rural hospitals and nursing homes. As a small-government conservative, I will continue to work to ensure core needs are met but to scour for areas of waste and inefficiency.
I want to take this time to thank each of my constituents who have reached out to me in the past year to offer prayers or suggestions, voice concerns or ask for help. I value this input. With your help, I am able to better serve all the people in House District 59. Thank you for allowing me to be your voice at the state Capitol. Please know I will continue to strive to always to the right thing for you and for Oklahoma.
I wish each one of you a happy and prosperous New Year, one filled with hope and opportunity to live life at its best.
By Rep. Mike Sanders
At this time of year, it’s easy to get caught up in all the trappings of the season: the shopping, the lights, the search for the perfect tree, the perfect presents, the decorations, baking, wrapping, family traditions, you name it.
We have some wonderful traditions in our House District, and I enjoy each one of them.
It’s also a great time of year to remind those closest to us that we love and appreciate them. I love finding the perfect gift for my wife Nellie, something that helps show her how much she means to me and to our boys. I love seeing the excitement on our sons’ faces when they get up early Christmas morning to see what Santa brought them.
I’m grateful for my extended family, especially my dad. I love getting to spend time with him this time of year.
I appreciate our military men and women, many of them away from home during the Christmas season. I extend to them a very Merry Christmas and wish for them a happy New Year. This goes out to our first responders as well – our police officers and firefighters, our EMTs. It extends to our teachers and other educators who watch over our children and make sure they are learning all they need to know to be successful in the future. It goes to our civil servants who work hard every day to ensure we have the state services supplied by government funds.
But maybe after a while you’re a bit like me. The business of the season, the lights, the colors, the sounds, the smells, the enormous amounts of food, can all start to feel a bit overwhelming. I sometimes find myself at this time of year, asking like Charlie Brown did in “A Charlie Brown Christmas,” “Isn’t there anyone who knows what Christmas is all about?”
Sweet little Linus gives the answer, when he quotes Luke 2:8-14 from the Bible.
“And there were in the same country shepherds abiding in the field, keeping watch over their flock by night. And, lo, the angel of the Lord came upon them, and the glory of the Lord shone round about them: and they were sore afraid. And the angel said unto them, Fear not: for, behold, I bring you good tidings of great joy, which shall be to all people. For unto you is born this day in the city of David a Savior, which is Christ the Lord. And this shall be a sign unto you; Ye shall find the babe wrapped in swaddling clothes, lying in a manger. And suddenly there was with the angel a multitude of the heavenly host praising God, and saying, ‘Glory to God in the highest, and on earth peace, good will toward men.’”
“That’s what Christmas is all about Charlie Brown,” Linus says.
Indeed it is. Merry Christmas to all.
By Rep. Mike Sanders
When many people think of the nation’s first Thanksgiving, they often envision the Pilgrims sitting down with a group of First Americans sharing a harvest dinner.
I want to harken to the Thanksgiving Day called to observance by President George Washington in 1789, the same year the government of the United States of America began under the newly ratified Constitution.
President Washington issued a proclamation declaring an official holiday of “sincere and humble thanks” to be observed in November of that year to honor the new Constitution.
According to the George Washington Mount Vernon Society, “Washington declared that the necessity for such a day sprung from the Almighty’s care of Americans prior to the Revolution, assistance to them in achieving independence, and help in establishing the constitutional government.”
The items spelled out in Washington’s proclamation are things for which I still am thankful – the Almighty’s care and protection, His help in establishing and helping us maintain our liberty, and the opportunity to peaceably establish a constitutional system of government for our safety and happiness.
I may not always agree with our government, but I can honestly say I’m grateful for the foundation laid so carefully by our nation’s founding fathers and the Constitution that allows us to this day to continue to live in tranquility and freedom.
I’m grateful as well for my family – my wife Nellie and our boys. I’m very blessed.
I’m grateful for the district in which we live, for the people who enrich our lives in so many ways. I will continue to serve you to the very best of my ability.
On Thanksgiving as every day, I offer grateful prayers for our military – our service men and women who protect us both at home and abroad; for our law enforcement officers and our first responders; for our teachers and other civil servants who keep our many community services running. I’m thankful for the many business owners who choose to call House District 59 home.
As you go about your busy lives, I hope you too will take a moment to express your gratitude towards others and in the words of Washington, “Acknowledge the providence of Almighty God, obey His will, be grateful for His benefits, and humbly implore His protection and favor.”
By Rep. Mike Sanders
I voted no on the stop-gap budget bill this week.
From day one I have been a supporter of the County Improvements for Roads and Bridges (CIRB) Fund. I have voted against state budgets in the past because they dipped too heavily into transportation. It’s one thing when our partners in transportation tell us they have enough to complete their projects and that we can pull the excess for other necessary state services. But, when Western Oklahoma county commissioners tell me this will hurt projects currently in the five-year plan, I believe them, and I stand with them.
Safe and well-maintained roadways are a vital part of our infrastructure, allow for economic development in rural Oklahoma and, most of all, assure our families can travel safely in their daily routines.
The state’s top three medical and health agencies will be funded, and the agency directors were very supportive of this bill. Keeping our rural nursing homes and hospitals open was my top priority of this special session.
Twelve agencies will receive no cuts. These include common education, the state Health Department, Corrections and the Indigent Defense System, among others.
One source of revenue for the state budget is a removal of a remaining credit on gross production taxes on legacy oil wells (those drilled before July 2015) from 4 percent to 7 percent. This will bring in almost $49 million this fiscal year and about $100 million next year.
In the meantime, the state receives some positive economic news. October gross receipts rose by 10.6 percent over the same month a year ago. This is the first time for double-digit growth in the last 4½ years. It’s also significant that nine out of 10 months this calendar year have shown growth over the previous year as have almost all major revenue streams.
Our No. 1 mission during this special session was to take care of the health care crisis, and we have done that. Now we are preparing for next session. The House is still committed to a teacher and state employee pay raise, and we will continue to fight for that among other priorities.
By Rep. Mike Sanders
The House on Wednesday voted on House Bill 1054X that would have increased taxes on cigarettes, cigars and smokeless tobacco; gasoline and diesel; 3.2 beer consumed on premise; and the gross production tax on new oil wells.
The $79.1 million from the tobacco tax would have gone to the three health care agencies affected when the state Supreme Court struck down the Smoking Cessation Act of 2017. This would help keep services for our most vulnerable in place as well as our rural hospitals and nursing homes open.
The $40.5 million from the motor fuels tax would have been designated for roads and bridges beginning in July.
The $10.4 million from beer, and $2.1 million from gross production tax would have gone towards a teacher and state employee pay raises.
Those who don’t use tobacco or drink will not pay those taxes.
The bill failed to get the 76 votes required.
The bill was held over so it could be brought back to the House floor for another vote. I’m not sure yet whether that will happen.
In the meantime, the House already has passed – appropriations of state carryover cash, as well as a measure that increases the gross production tax on legacy wells (those drilled before July 2015) from 4 percent to 7 percent.
The measures await approval by the state senate and the signature of the governor.
I’m disappointed HB1054X failed.
For those who said they wouldn’t vote on this bill before we audit our agencies, I would say, I agree, we must audit our agencies for waste and fraud. But, those audits will not start in time to save our core health care services, to fix our roads and bridges, and to give our teachers and state employees a much needed raise.
People in this state are looking for leadership and a solution for our budget problems now. I have looked for compromise among my fellow Republicans and with my Democrat colleagues. I have taken a reasonable and bipartisan approach to this entire process and will continue to do so. I have listened to the people of my district, and I will always vote with those who hired me to do this job.