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In State of the State, Oklahoma Governor Pushes Performance-Based Budgeting

Gov. Mary Fallin, in her annual state of the state speech, urged lawmakers to improve the way the state budget is drawn up so that priority areas of education, public safety and health can be adequately funded.

By Rick Green

Gov. Mary Fallin, in her annual state of the state speech, urged lawmakers to improve the way the state budget is drawn up so that priority areas of education, public safety and health can be adequately funded.

MORE: Text, highlights and video of every governor's annual address.

The speech to the Oklahoma Legislature and other officials marks the start of the four-month legislative session.

She touted a new system of "performance-informed budgeting" that seeks to link spending to measurable goals and outcomes. She said too much money is spent outside of the legislature's discretion in dedicated funding streams.

She noted that because of this so-called "pass-through funding," this year, legislators will only appropriate 47 percent of total Oklahoma tax receipts, down from 55 percent in 2007.

"Slowly but surely, elected representatives are losing the ability to guide state priorities and the flexibility they need to respond to changing circumstances," she said in prepared remarks. "My challenge to all of us is to reverse that trend and use this session to really unpack the way the state is spending its money.

"As a state we spend a lot of money now on programs we hope are working. We need to identify and support programs we know are working."

She also called on lawmakers to pass legislation requiring more than $200 million in tax credits and economic incentives to be evaluated through an objective process established by the Pew Charitable Trusts.

She said she intends to close an anticipated budget hole of at least $300 million, with unencumbered funds in state agency accounts, or so-called revolving funds.

Educational attainment

The governor said lack of education attainment is holding the state back.

"We must encourage more Oklahomans to continue their education beyond high school," she said. "Currently, Oklahoma's workforce is not meeting the education levels needed to sustain potential job growth. For Oklahoma businesses to meet labor demands and Oklahoma citizens to find good jobs and careers, we need to address the emerging 'skills gap.'"

She proposed a $25 million funding increase for the Department of Education.

She announced the launch of "Oklahoma Works," a program that "develops partnerships between K-12 schools, career tech, higher education and local businesses to help promote work skills, increase degree/certificate completion, and help steer students toward available careers."

Incarceration rate

Fallin also mentioned that the state's incarceration rate, one of the highest in the nation, is also holding the state back.

"Personal and community safety remain top priorities, and violent criminals will continue to be incarcerated," she said. "But the fact is, one in eleven Oklahomans serve time in prison at some point in their lives. Many of our current inmates are first time, non-violent offenders with drug abuse and alcohol problems. Many also have mental health issues they need treatment for. For some of these offenders, long sentences in state penitentiaries increase their likelihood of escalated criminal behavior.

"Oklahoma must ramp up its 'smart on crime' policies, including the Justice Reinvestment Initiative, designed to intervene for low-risk, non-violent offenders and more readily offer alternatives such as drug-courts, veterans courts and mental health courts."

She said the incarceration rate for non-violent offenders can be reduced by ensuring they are getting treatment and supervision when this is more appropriate than being sent to prison.

Fallin proposed a $5 million increase for the Department of Mental Health and Substance Abuse Services and a $15 million increase for the Department of Corrections

Health outcomes

Public health is Fallin's third main issue of concern.

"Oklahoma ranks at the top of the nation for prescription drug abuse; fourth in the nation in unintentional drug poisoning deaths; seventh worst for obesity; sixth worst for smoking rates," she said. "It's time to stand up and fight for better health. Every Oklahoman can do better in taking personal responsibility for their own health. But there are things we can do here at the capitol, starting by passing a prescription drug monitoring bill that cracks down on the practice of "doctor shopping" and ensures we aren't prescribing narcotics to addicts.

"We can pursue commonsense solutions: like going smoke-free at all K-12 schools, and banning practices like texting while driving that kill Oklahomans -- many of them teenagers -- every year."

She called for a:

_ $20 million increase for the Oklahoma Health Care Authority

_ Passage of a prescription drug monitoring bill to keep dangerous prescription narcotics out of the hands of addicts.

_ Passing legislation to ban texting while driving.

_ Going "smoke-free" at all K-12 public schools

_ A statewide goal of decreasing heart disease deaths by 25 percent by 2025.

Fallin also attached goals to her agenda, including

_ A 10 percent decrease in the prison population by 2025.

_ A 13 percent decrease in the rate of infant deaths by 2018.

_ A 25 percent decrease in heart disease deaths.

(c)2015 The Oklahoman

Caroline Cournoyer is GOVERNING's senior web editor.
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