Big new spending proposed for roads, schools
Capitol Spotlight for weeklies for week of Jan. 29, 2006
By Jim Campbell
OPA Capitol News Bureau
Gary Ridley has been up and down Oklahoma preaching about deadly roads and bridges and pleading for money to fix them, often in years too lean to expect the help he needs.
Times are better.
The Oklahoma Department of Transportation director stood beside Gov. Brad Henry as the governor proposed spending $520 million more over the next 10 years, thanks to growth revenue largely provided by increased taxes on oil production.
"Springboarding on top of House Bill 1078, this is one of the most significant steps forward in the history of the department, certainly in my 40 years," Ridley said.
 HB 1078 was last year's bill by Reps. Mark Liotta, R-Tulsa, and Jim Newport, R-Ponca City, which Henry credited with moving the state "tremendously in the right direction."
Calling it an economic development initiative, Henry said his Road to Progress program would add $1.9 billion in new road money over the next decade when coupled with last year's action.
"Oklahomans certainly deserve better roads and bridges," Henry said. "With this initiative we can repair Oklahoma's most dangerous roads and bridges without raising taxes or fees."
It would pump an immediate $100 million from surplus funds for bridge work, dividing it 50-50 between state and county and municipal structures. It also would annualize about $70 million that was appropriated last year for ODOT to pay debt service on road bonds.
Henry's plan includes a "lockbox" - requiring a vote of the people - to constitutionally prevent future legislators from diverting the road funds to other uses. It further provides for a low-interest revolving fund that could be used by cities and counties to repair their roads and bridges.
HB 1078 added at least $17.6 million annually to road and bridge funding, or $35 million in years when growth money topped three percent, and tops out at $170 million a year beginning in 2011. Another Republican plan announced this fall would boost the annual funding to $50 million.
Liotta and Newport attended Henry's news conference and said they welcomed his proposal, indicating they were ready to negotiate.
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Henry also rolled out proposals for spending about $256 million of a certified $314 million in additional spending money for education.  It would go for common school classrooms, teacher pay raises, college scholarships, CareerTech and state universities.
With proper oversight, he said, "every dollar we invest in the classroom and teacher salaries will pay dividends down the road."
The proposal came after announcement of a lawsuit by the Oklahoma Education Association, alleging the state is in violation of the state constitution by funding schools inadequately.
Although big Republican tax cut proposals were on the table, Henry said he expects there will be enough growth revenue to pay for his spending programs including $28.5 million more for firefighting purposes.
House Speaker Todd Hiett, R-Kellyville, proposed $235 million in tax relief, including a reduction in the state income tax from 6.25 to 5.8 percent. Sen. Scott Pruitt, R-Tulsa, would cut the rate to 4.9 percent in Senate Bill 2022.  Both Republicans are candidates for lieutenant governor.
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Retired teachers would get a five percent cost-of-living adjustment to help pay medical costs through a bill offered by Rep. Doug Cox, R-Grove.
"I've visited with many retired teachers in northeast Oklahoma, and a common problem they mention is that, each year, a greater proportion of their spendable income is being eaten up by increasing health care prices," said Cox, a physician.
Cost of living adjustments normally are issued every other year in Oklahoma. The last was 2.5 to 4.5 percent in 2004, depending on length of service.
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The chairman of a task force that has spent months studying the state's Medicaid system is proposing to scrap the old setup and move to consumer choice program providing a choice of options.
One option in the proposal by Rep. Kris Steele, R-Shawnee, is to opt out of Medicaid and use a state-allocated Medicaid premium to participate in an employer-sponsored health care plan.
"Medicaid is a 40-year-old system that's failing to meet the needs of Oklahoma's citizens today," he said. "And if we don't press for fundamental reforms now, Medicaid could consume the state's budget within a decade."
House Democrats proposed a package of healthcare initiatives, including a revival of last year's proposal for a hospital quality and access fee on hospitals. The fee of less than 1 percent of patient revenues would amount to about $90 million, which could attract $200 million more in federal matching funds. The money would be allocated to hospitals for the use of Medicaid patients.
Another Democratic proposal is for drug-re-importation from Canada.  Steele said he also would offer a re-importation bill.
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