CONTACT:
Jennifer Monies, Press Secretary
Oklahoma House of Representatives
Office of House Speaker Chris Benge
Office: 405-962-7679
Email: jenniferm@okhouse.gov

OKLAHOMA CITY (Sept. 24, 2009) – If State Question 744 is approved by the voters next fall, planned roads and bridges wouldn’t be built, thousands of prisoners would have to be released, mentally ill Oklahomans would be left without care leaving them destined for the streets or prison, thousands would be dropped from the Medicaid rolls and several health services would be eliminated, fewer state troopers would protect Oklahoma streets, more children and senior citizens would be cut out of state care and college tuition would increase across the state, House members were told by agency directors at an interim study today.

The interim study was requested to examine the potential effects of the passage of State Question 744, which would tie the state’s Common Education funding to an arbitrary regional average set by Oklahoma’s surrounding states.

Today, officials with seven state agencies varying from health care, human services to public safety testified that if the state question is approved, and the diversion of funds is paid for solely with budget cuts to other state agencies, the results will be dire for all Oklahomans.

If approved, the state question will require a diversion of at least $850 million in state funds to Common Education. In order to fulfill that requirement, lawmakers would likely have to look at income or sales tax increases possibly as high as 40 percent or budget reductions in other agencies of as much as 20 percent across the board.

"The level of services to Oklahomans that would have to be cut to accommodate State Question 744 is stark and would be hugely damaging to our state," said House Speaker Chris Benge, R-Tulsa. "Approval of the state question would divert millions of dollars to Common Education, but at what cost with no guarantee of improved achievement results?"

"While the petitioners of State Question 744 may be well-intended, the question is irresponsible—it is a zero-sum game where one budget component benefits to the detriment of the other vital state services like transportation, public safety and health care," said Rep. Ken Miller, chairman of the House Appropriations and Budget Committee, which is overseeing the study.

Several agency officials noted that budget cuts forced by SQ 744 would not only eliminate state dollars, but would mean fewer matching federal dollars coming into the state, a fact that will only exacerbate the funding cuts.

State Transportation Director Gary Ridley said a $42 million state budget cut to his agency would equate to a total hit of $395 million on the agency’s 8-year transportation plan when federal matching dollars are also included.

"The impact that (level of cut) would have on the agency would certainly put us back many years from where we are at now," Ridley told members of the committee, which would contribute to unsafe roads.

Chief Operating Officer of the Oklahoma Health Care Authority Mike Fogarty said for every dollar reduced in state money, about $1.75 in federal money will also be lost to his agency. Under the budget cut scenario, the Health Care Authority, which operates the state’s Medicaid and Medicare programs, would be cut by about $134 million in state funds, which would have about a $536 million total loss impact when federal dollars are also included, he said.

Director of the Department of Human Services Howard Hendrick said the cuts his agency would face would be limited to state-funded programs, such those that impact senior citizens and children in the foster care system. He stressed that the impact health and human services has on a child has a direct correlation to how well that child will do in school and whether he or she will become a productive member of society.

"Family structures tie back into why kids don’t show up (to school)," Hendrick, a former state Senator, told the committee. "When kids show up to school hungry, they’re not going to learn very well….sometimes they’re not going to show up."

Department of Mental Health and Substance Abuse Services Commissioner Terri White agreed that making sure children have a healthy brain before going to school is critical in a student’s overall education experience. She said an approximate $40 million cut to her agency would lead to a reduction in services, many of which have been successful in combating mental illness early, especially in juveniles.

"We cannot consider State Question 744 in a vacuum. Today’s study showed how interconnected our state agencies are when it comes to the health, productivity and education of the citizens of our state," said Rep. Leslie Osborn, R-Tuttle, who requested the study. "A cut to one agency causes ripples across our state, many of which have a direct effect on the education and the future of our youth."

Public safety will also suffer as a result of the budget cuts that could be required with passage of SQ 744.

Commissioner of Public Safety Kevin Ward said a 20 percent cut in his budget would lead to reductions in force, including cutting state troopers who are charged with keeping Oklahoma roads safe.

Executive Assistant to the Corrections Department Director Neville Massey said the same budget cut, which would eliminate $101 million in state funds from her department, could mean the closure of up to nine state prison facilities, which could lead to the release of as many as 8,400 criminals onto the streets.

State Regents for Higher Education Chancellor Glen Johnson said once fully implemented, the state question could lead to as much as a 23 percent cut to higher education if only budget cuts to other agencies are pursued to pay for the additional required funding for Common Education.

That level of cut could mean a reduction or elimination of course offerings, employee furloughs, reductions in the number of graduate assistants, departmental cuts, early retirement for faculty and staff, freezes in travel and technology purchases, reductions in scholarships or possibly as much as a 33 percent tuition increase across the entire higher education system in the worst case scenario.

Joel Robison, associate executive director at the Oklahoma Education Association, concluded the interim study by saying the assumption that budget cuts to other state agencies will be needed to pay for SQ 744 is unfounded.

"The Oklahoma Education Association claims that State Question 744 can be completely funded through revenue growth in our existing budget, but that is wishful thinking," said Rep. Randy McDaniel, R-Oklahoma City, who also requested the study. "Realistically, even when our economy grows in the future, which is uncertain in the near-term, other increased costs will require additional dollars, especially when it comes to health care costs and public safety needs."

State Question 744 will appear on the ballot for consideration in November, 2010.

NOTE: For accompanying video, go to http://www.okhouse.tv/ViewVideo.aspx?VideoID=194