Coffee Talk: Legislative Tidbits

^Three state representatives and State Auditor and Inspector Gary Jones issued the following statements on the Tulsa City Council’s call for an investigative audit of the Emergency Medical Services Authority:

“Right now, we can’t confirm if there are more cases of false billing and other problems. I think the audit will help determine whether EMSA is making the smartest and best use of the taxpayer dollars they have been entrusted with help answer the questions of my constituents and Tulsa city officials.” – State Rep. Seneca Scott, D-Tulsa.

“I think it is clear that there is a problem and that an audit is needed to find out the scope and nature of it. I support the Tulsa City Council’s request and would hope that it would be taken care of in a timely fashion.” – State Rep. Eric Proctor, D-Tulsa.

            “The citizens of Tulsa, Oklahoma City and their surrounding areas are supposed to receive ambulance service at no out-of-pocket cost. That service should be straightforward and no hassle. However, there have been numerous complaints about EMSA billing and collections and now concerns that they have been overspending their monies. I think an audit is critical.” – State Rep. Sean Roberts, R-Hominy.

            “Obviously, there are concerns from citizens that need to be addressed. Whether it’s our agency or a private auditing firm, I think it’s necessary that an audit be conducted to clear the air. Citizens have a right to have their questions answered.” – State Auditor and Inspector Gary Jones.

            The Emergency Medical Services Authority oversees a private contractor that provides ambulance service to more than 1.1 million people statewide. EMSA is a public trust, a type of government body, with the cities of Tulsa and Oklahoma City as its beneficiaries. Some board members are appointed by the mayors of Tulsa and Oklahoma City and others are subject to approval by city councils in nonbeneficiary cities such as Jenks and Bixby.

            On April 19, the Tulsa City Council approved a resolution calling on EMSA’s board to hire a firm or to engage the state Auditor and Inspector’s Office to conduct an investigative audit. The EMSA Board has appointed a committee to determine the scope of the audit and report back at May’s  meeting.

^House members have voted to use future “spillover” funds to shore up the state’s pension systems.

When revenue collections exceed projections, the Oklahoma Constitution provides for the extra cash to go into the state’s “Rainy Day” fund. Once Rainy Day fund deposits equal 15 percent of the certified amount, deposits exceeding that total are considered “spillover” that can be and have historically been appropriated for a wide range of uses.

Senate Bill 1264, by state Sen. Dan Newberry and state Rep. Randy McDaniel, creates the Oklahoma Debt Reduction Fund and would require that a significant portion of spillover funds be automatically directed to the reduction of pension liability debt.  Once all pensions systems are funded at 80 percent or more, the same share of spillover funding would then be dedicated to reducing the state’s other indebtedness.

            “Reducing our pension liability debt is critical to ensure the long-term sustainability and strength of the state,” said McDaniel, R-Oklahoma City.  “This legislation ensures that we take care of our past obligations before new spending proposals are considered.”

            “We must reduce our debt to assure our state’s long-term economic health,” said Newberry, R-Tulsa.  “When debt grows, it creates pressure to increase taxes. I would prefer that Oklahoma grow jobs.  This legislation is an important part of that effort.”

            Senate Bill 1264 would ensure that 30 percent of any spillover funding is applied toward the reduction of pension liability debt.  Once a system’s pension liability is funded at 80 percent or more, the same percentage of spillover funding would be dedicated to reducing the state’s bonded indebtedness. 

Although Rainy Day Fund spillover is not a routine occurrence, it has happened in recent years, including in Fiscal Year 2008 when lawmakers had roughly $150 million in spillover funding.

            House passage of Senate Bill 1264 occurred the same week it was reported that the Medicare and Social Security trust funds will be exhausted by 2024 and 2033.

McDaniel said pension reform will protect Oklahoma from the financial problems many other states and the federal government now face.

“This legislation will make debt reduction a higher priority. It requires us to first pay current obligations before committing to new spending programs,” McDaniel said. “By retiring debt more quickly and limiting the growth of government, we can ensure greater stability for Oklahoma in the future.”

^Senate Bill 1327 was approved by the House and returns to the Senate. The legislation would result in the creation of Regional Planning Groups (RPGs) to provide for grassroots, rather than top-down, water planning.

Creation of RPGs was one of the top eight priorities recommended in the Oklahoma Comprehensive Water Plan, largely because it was the most popular recommendation from Oklahoma citizens across the state.

 In the 19 states comprising the western U.S., more than half—including our neighboring states of Texas, Kansas, New Mexico and Colorado—conduct water planning through RPGs.

            Carolyn Brittin, Deputy Executive Administrator of Water Resources Planning & Information for the Texas Water Development Board, says that RPGs “have provided a broader range of educated citizens on water issues, including both RWPG members and the public (due to the public process in the regions).”

            Brittin maintains that Regional Water Planning Groups have facilitated cooperative water development projects and says that there is greater buy-in to plans by RWPG members in their regions since they adopted the regional water plans.

^Rep. James Lockhart, D-Heavener, placed an amendment on Senate Bill 1327 that would give citizens more control over regional water planning. Senate Bill 1327 sets up 9 regional water planning councils. The original language in the bill allowed government officials to appoint members to the councils.  Under this language, local citizens would not have a voice in choosing their council member.

Lockhart’s amendment allows the citizens of each region to elect their council members. The amendment passed by a vote 77-10, and the bill passed 59-30.

“I believe in the voice of the people,” said Rep. Lockhart. “In over one hundred meetings held across the state, the number one issue expressed by people was a desire to have a voice in the future of their water resources.”

“My amendment sends a clear message to the people of our state that their voice is heard at the State Capitol, and I am thrilled that the bill passed as amended. I would like to thank Speaker Steele and Senator Ellis for their leadership on this issue. I did not do this alone, it was a bipartisan effort.”


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