OSCIPA recently hired former House member Dennis Adkins of A&A Advocates, Inc. as our new lobbyist. We’d like to take the time to introduce Mr. Adkins to you. We have included in this week’s blog his past achievements as well as his pre-session legislative report. Mr. Adkins will also be available to meet and greet our members at the upcoming relicesning seminar on February 26th after class ends at 5:00PM.
About Dennis Adkins and A&A Advocates
A & A Advocates, Inc.
Government and Public Relations Strategies
P.O. Box 54413, Oklahoma City, OK 73154
Phone: 405-706-2615 Email: dennis.adkins@ymail.com
Government affairs clients currently include; AT&T, AES Shady Point, ITC Great Plains, Newfield Exploration, Oklahoma Municipal League, Oklahoma State Chiropractic Independent Physicians Association, Oklahoma State Employees Association, Plains Pipeline, Sunoco Logistics, Tarrant Regional Water District.
Legislative Career Highlights:
Dennis Adkins elected to the House of Representatives in November of 2000 and served to November 2008.
He is the past Chairman of the Energy, Utility, Aerospace, and Technology Committee for the Oklahoma House of Representatives. Chairman Adkins’ responsibilities included jurisdiction and oversight of Oklahoma’s oil and gas industry, telecommunications and technology, mining, aerospace industry, as well as, all electric and water utilities.
Representative Adkins was also served as a member of the Public Health Committee for six year. Adkins was named to the Leaders on Public Health Policy shortly after being elected in 2000.
Chairman Adkins has testified before the Environment and Public Works Committee of the United States Senate with respect to the energy industry and its relation to carbon emissions and climate change.
In addition, Adkins served on the Executive Committee of the International Energy Council, a leading organization of energy producing states, Venezuela, Canada, and China.
Adkins was selected by the International Republican Institute to serve as an official observer of the first democratic Presidential elections in Macedonia.
Representative Adkins was also chosen by the American Council of Young Political Leaders to participate in a United States mission to Tanzania and Uganda to study emerging issues with regional African leaders.
Representative Adkins’ legislative career was highlighted by being twice named Oklahoma Independent Petroleum Association legislator of the year.
He was also named the Higher Education legislative newcomer of the year, American Royalty Council legislator of the year, and Industrial Electric Consumers legislator of the year.
He was selected to participate in Leadership Oklahoma and is now a lifetime member of the organization.
In addition to the Energy and Public Health Committees, Dennis served on the powerful Appropriations and Budget Committee, the Revenue and Tax, and the Environment and Natural Resources committee in the House of Representatives.
Previous Employment and Education:
Prior to the legislator, Adkins served the State of Oklahoma in professional positions within the Department of Corrections, Department of Human Services and the Department of Rehabilitative Services.
He graduated from Northeastern State University in Tahlequah, Oklahoma with a Bachelor of Arts in Political Science.
2011 Pre-Session Legislative Report
The 2011 legislative session opened on Monday, February 7 and the face of Oklahoma’s government will be significantly different than at any time in our history. Both houses of the legislature are now solidly controlled by Republicans. Of the 101 members in the House of Representatives, 70 are Republican―32 of the 48 members of the State Senate are Republican. But that is only the beginning of the story. Mary Fallin, the state’s first female Governor, is a Republican, as is the Lieutenant Governor, State Treasurer, State Auditor and Inspector, State Insurance Commissioner, State Labor Commissioner, and the State Superintendent of Public Instruction. This dominance by the Republican Party is sure to change the philosophy and direction of the state for years to come.
What can be expected from the new legislature and executive branch? The most pronounced change from past governments will be a much more conservative approach to the issues facing the state. That conservative approach should manifest itself in a downsizing of state government (fewer agencies, departments and state employees), a rejection of any new tax increases, better financial management of state assets, and a much more conservative approach to social issues. While it will take time for the new government to hit its stride, there is little doubt that change is coming. The only question left to answer is how quickly the changes will occur.
As is always the case when a legislative session begins, the dominate issue will be the state budget. Questions that must first be answered relate to the state’s revenue picture. How much money will the legislature have to spend? Once that question is answered, the legislature will turn its attention to balancing the budget by making cuts to various agencies and programs. As it moves toward writing the FY2012 budget, legislators want to hear from state agency heads relating to ideas they may have about how budget cuts can be handled within their agencies. Legislative leaders have already directed the various agency heads to develop plans that show how they could operate with as much as a 10% cut from their current budget level. With little Federal Stimulus money left to help soften the blow, and with no reasonable prospect of additional revenues from tax increases, agency directors will be hard pressed to meet their budgetary requirements without additional layoffs of employees. Every agency will be given an opportunity to make its budget case to both the House and Senate early in February. Then the job of writing the FY’2012 budget will begin.
Before looking at the revenue projections for the state, here are a few facts about the Oklahoma economy.
- The state’s jobless rate remains flat at 6.9%, while total employment fell by 3,100 jobs in November.
- The state’s personal income grew in the third quarter of 2010 by 1%, down from 1.8% in the second quarter.
- December revenue collections were up 13% from the year before. Thus far, FY2011 revenue collections are up 7.5% over the previous year, but that is still 23% less than revenue collections in FY2009.
- After 30 months of growth, the number of Oklahomans receiving SNAP (formerly food stamps) benefits declined in October, but Medicaid enrollment rose 2.1% in October, reaching the historically high level of 726,960 persons.
As the data above indicate, Oklahoma’s economy is improving but is still far from fully recovered. Most estimates show that it will be FY2014 or beyond until state revenues return to pre-downturn levels. By that time agency cuts will have trimmed the size of state government. So a return to pre-downturn levels of revenue could result in sizable surpluses for the state. However, there will be pressure to use much of the increased revenue to offset further cuts in the state’s income tax. Reducing the state income tax continues to be a goal of the Republican majority. The ultimate goal is to completely eliminate the tax in order for the state to compete with Texas when trying to entice out-of-state companies to relocate here.
Revenue projections for the next fiscal year indicate that the legislature will have between $200 million and $600 million less to spend than it did in the current fiscal year, a figure that is about $800 million less than in FY2009. It is estimated that the total appropriated state budget will be around $6.3 billion, as opposed to $7.125 billion in FY2009. Federal Stimulus dollars have largely been used, so the state will not have those funds to help offset its budget shortfall. Almost every state in the country is facing similar, if not greater, deficit. Due to its budget-balancing requirement, Oklahoma is better positioned to address its needs than other states―a few who are even facing the possibility of bankruptcy. But that does not mean Oklahoma is without pressing problems. Unfunded liability levels in our pension systems continue to be a concern and most counties and school districts are also facing financial pressures.
So the members of the legislature and new Governor Mary Fallin return to the Capitol with a significant challenge. The revenue shortfall must be accounted for. The state constitution prohibits deficit spending. There is no desire to raise general taxes to help make up for the shortfall. Specific fees, such as fees on health care providers, will be discussed. But even those targeted fees will face stiff opposition, and their passage will probably require a three-fourths vote by both houses of the legislature to become law. That means that further budget cuts seems almost a certainty. Those cuts will come in the form of across-the board reductions or through targeted cuts to specific agencies. The budgetary process over the next four months will determine that.
In addition to budget discussions, the legislature will be taking up many non-budget issues. Look for the State Chamber of Commerce to play a bigger role in shaping those issues than it ever has. Conversely, organized labor and attorney groups have lost supporters inside the House and Senate chambers. Their influence has been diminished. Because Oklahoma is one of the most conservative states in the Union, there will be an aggressive conservative social agenda as well.
As of the writing of this report, a total of 2137 bills and 85 JR’s have been introduced for consideration during the 2011 session. House members filed 1,168 and 41 joint resolutions, compared to 1,153 bills and 31 JR’s in 2010. There were a total of 969 Senate bills and 44 JR’s filed as opposed to the 1082 bills and 82 JR’s filed in 2010. A new Senate rule exempts appropriation bills from the deadline, an effort to improve efficiency and increase transparency in the legislative process. Over the next four months A&A Advocates will report on all the important issues that are before the legislature and Governor. Some of the issue areas that will receive scrutiny in our legislative updates will include:
Insurance: General insurance changes; health insurance bills; uninsured motorist
General Business: Workers Comp changes; Tort Reform efforts; Quality Jobs issues; Aeronautical issues
Medical/Health: Health Care Reform; Medicaid funding and changes; Chiropractic proposals, local control tobacco regulation
State Government: Procurement legislation; Tribal issues; Ethics and Elections discussions; Privatization efforts; State employee reductions
Corrections: Private Prison efforts; Prisoner reduction efforts
Energy: Incentives for oil and gas exploration; Pipeline Issues; Electric Transmission; Electric Generation; Recycling efforts; Water transfer and development legislation
Tax and Revenue: Income Tax reductions; Miscellaneous tax incentives; Tax Credit changes
Education: Overall funding; consolidation proposals; Property tax changes; Private college legislation
Communications: Telecommunications legislation; Changes regarding 911 laws; Mobile phone/Hand held device restrictions
Local Government: Municipal bond law changes
Politics: Majority party and minority party issues inside the House and Senate; State elected office politics
In addition, the A&A Advocates’ updates will pass along any credible tips and rumors that we believe may impact coming actions in the legislature. We will tell you what we’re hearing behind the scenes, so you can make sense of what you’re reading in the daily newspapers. Each week we will also provide links to other internet sites that we feel might provide additional useful information. The 2011 session promises to be interesting. We look forward to working with you and will do our best to keep you fully informed.
Thank you to those of you who took the time to read this information we have posted for you here.
Larry Bridges, Ph.D.
Executive Director
Amy Prentice, BS, ASCT, CPC
Provider Relations Representative