Video: Fallin delivers State of the State address

Oklahoma Governor Mary Fallin delivered her sixth State of the State address on Monday afternoon to kick start the 2016 legislative session.

During her speech, Fallin address the state’s financial woes, which is quickly approaching a billion dollars, less jail time for non-violent drug offenders, sales tax, capitol repairs and pay raises for teachers.

Click here for the proposed budget for the fiscal year 2017.

The collapse of oil prices and decades-old structural budget problems have caused almost a $1 billion budget hole. She also asked lawmakers to approve a measure that would automate the reconciliation of some agency non-revolving funds from “one-time” funds to general revenue.  These funds, which contain about $1.5 billion, are there every year (see attached GRAPH 2). The governor requested legislators approve her executive budget, which begins the type of true, meaningful fiscal reform the state needs.

“This budget takes control of the challenges we face today and puts us on far better footing for the future. It makes necessary cuts that will require continued efficiencies from agencies, prioritizes spending and lessens those reductions in our core service areas wherever possible. It modernizes our tax code to make it more consistent with 21st century commerce. Because this budget proposes using recurring revenue, it uses zero one-time revenue. There is no one-time money in this budget. It doesn’t even use the Rainy Day Fund.”

Fallin told the legislature her budget would appropriate an additional $178.4 million to provide a $3,000 pay raise for each teacher.

“We applaud Governor Fallin for recognizing the need to pay Oklahoma teachers competitively as soon as possible,” State Superintendent of Public Instruction Joy Hofmeister said in a release. “The proposed $3,000 salary increase outlined in her State of the State address is an important step in aligning our educators’ pay with the regional average and could help alleviate the teacher shortages we are facing in all areas of pre K-12 education. We look forward to further discussion of the Governor’s plan,”

Despite scrutiny with the revenue failure for the current fiscal year, Fallin encouraged lawmakers to approve an additional $120 million to repair the state Capitol.

“Let’s finish the Capitol’s most pressing needs. In 2017 we will celebrate with a party this building’s 100th birthday. No one should want to stop construction. Interest rates remain low, and the new bond wouldn’t be issued until 2018, when 40 percent of our existing bond principal rolls off the books, so we can do this in a way that doesn’t affect next year’s budget. This is a legacy opportunity for you all. Let’s finish the job right.”

Fallin proposed a cigarette tax increase from $1.03 to $2.53 per pack. She stated the plan will help saves lives and reduce health care costs.

“Our smoking rate has dropped 19 percent since I took office.”

For the Department of Corrections, the governor’s budget includes a $20 million supplemental appropriation this year, which will be annualized, and a $10 million appropriation increase next year to address continued offender growth and help keep the public safe.

Fallin, noting that Oklahoma is still No. 1 in female incarceration and consistently in the top five in male incarceration, called for serious sentencing changes that will preserve public safety and reduce incarceration rates.

“First, let’s allow district attorneys to have the discretion to file any first drug offense as a misdemeanor. Next, we lower the mandatory sentence from two to 10 years in prison, to zero to five years in prison. For second felony offenses for drug possession, lower the mandatory sentence from two years to life, to zero to 10 years. And for third felony offenses for drug possession, lower the mandatory sentence from six years to life with no probation to zero to 15 years,” Fallin said.