House Session Reaches Halfway Point

FOR IMMEDIATE RELEASE: March 13, 2014

House Reaches Session Midpoint; Passes Legislative Goals

OKLAHOMA CITY – At the close of deadline week, the Oklahoma House of Representatives passed legislation achieving several of its core goals for this session.

“The House is the chamber closest to the people,” said House Speaker Jeff Hickman, R-Fairview. “I applaud my fellow members for their time and dedication. We have worked to ensure Oklahoma continues to have an economically free environment, increase public safety measures for our citizens, develop a stable state pension system and fair compensation for state employees, address education standards and tend to the crumbling Capitol.”

House Bill 2508, authored by Rep. Earl Sears, would cut the personal income-tax rate from 5.25 to 5 percent beginning in 2016 provided personal income-tax revenues are equal or greater in fiscal year 2015 than revenues generated in fiscal year 2014. Rep. David Derby added an amendment to the legislation that would also lower the corporate income-tax rate from 6 to 5 percent in 2016 if corporate income-tax revenues in fiscal year 2015 are equal or greater than 2014. If revenue levels are not sufficient to enact the tax cuts in 2016, revenues will be reviewed each subsequent year to determine when the cuts will go into effect.

The tax cuts would be independent from one another, which would allow a greater chance for economic development and fiscal opportunity for those who reside in Oklahoma.

“The people of Oklahoma deserve a tax cut,” said Rep. Earl Sears, R-Bartlesville. “Rep. Derby and I have tailored legislation that strikes the balance between providing tax relief and encouraging economic growth while making sure core government functions are adequately funded. Lower taxes create more jobs and give our citizens more control over their hard earned money.”

Currently, Oklahoma faces a state pension crisis and carries more than $11 billion in unfunded pension debt. House Bill 2630, authored by Rep. Randy McDaniel, creates a defined-contribution system for new employees who are part of the Oklahoma Public Employee Retirement System (OPERS) based off of models used in the private sector. If signed into law, the system will phase out the state’s current and broken system over the next several decades, reduce the state’s unfunded pension debt and allow employees the retirement mobility that the modern job market demands.

“The current pension system is not sustainable and lacks the economic freedom modern pension systems offer,” said Rep. Randy McDaniel, R-Oklahoma City. “Service and hard work should be compensated, and our state employees and taxpayers deserve a system that is modern, efficient and sustainable.”

If signed into law, the defined-contribution system would take effect November 1, 2015 and would only impact newly hired employees. Current employees and retirees would not be affected.

After a recent study requested by the governor found state employee salaries to be up to 20 percent below market, particularly in the areas of public safety, corrections and social services, the House took the lead to address the issue of state employee compensation.

Representative Leslie Osborn’s House Bill 3293 would boost state employee salaries to 90 percent of private-sector pay over a four-year period. The bill would set aside 3 percent of the previous fiscal year’s payroll costs for salary adjustments each year. The bill would also remove salary structures from statute and give authority to the Office of Management Enterprise Services to set pay structures and determine if targeted pay band adjustments are necessary, rather than the state doling out across-the-board pay raises as in years past.

“The State of Oklahoma is losing skilled and educated employees to retirement and the private sector,” said Rep. Leslie Osborn, R-Mustang. “Our state needs hardworking employees who are highly skilled and possess the ingenuity needed to address state problems. By addressing our pay structure, we are making public service a viable career choice for the top recruits.”

The House also passed two state questions addressing public safety and infrastructure repair.

House Joint Resolution 1092, by state Reps. Jon Echols and Mark McBride, authorizes school districts to submit questions to a vote of the people to approve issuing of bonds for the construction or improvement of school safety facilities such as safe rooms or underground storm shelters.

“This measure allows local control over whether or not school districts should take on debt to increase safety provisions,” said Rep. Mark McBride, R-Moore. “By allowing communities to vote on such projects, this allows citizen and parental input on what is needed to keep Oklahoma children safe.”

House Speaker Jeff Hickman’s House Joint Resolution 1033 asks the people of Oklahoma to approve a $120 million bond to conduct much needed repairs and renovations to the Capitol building. For decades, the Capitol has suffered from neglect and is literally falling apart on the inside and the outside.

“The longer we wait, the more expensive the repairs will be,” said House Speaker Hickman. “This is one option that will get the job done.”

If approved by the Senate, the Secretary of State will place both HJR 1092 and HJR 1033 on the November 2014 ballot.

Finally, the House members, in a bipartisan vote, passed legislation to create more rigorous education standards that will direct Oklahoma children towards achievement and success.

House Bill 3399 places control over common education standards solely in the hands of Oklahomans. It directs the state of Oklahoma to opt for Option B under No Child Left Behind. Option B allows states to create elementary and secondary school standards that are certified by state higher education institutions to be college and career ready without risking federal funding and waivers.

“This option allows the flexibility needed to create standards that are purely Oklahoma and will prepare our children for higher education or careers in the modern job market,” said House Speaker Hickman, R-Fairview. “The House applauds Governor Fallin for her executive order and taking a stand against overbearing federal intrusion into our children’s education. We are following her lead with this measure and look forward to working with her to create a better education system with high standards for our most precious commodity, our children.”

The Oklahoma House of Representatives will now begin considering bills that have passed through the Senate.

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