[Oasfaa] House Speaker opposes OHLAP expansion

[Fair, Bryce]

FYI - below is an Associated Press article that was posted on the Daily Oklahoman website Tuesday afternoon (and in the Legislative Reporter this morning) about House Speaker Todd Hiett's state budget proposals.  The article doesn't seem to appear in this morning's Daily Oklahoman or Tulsa World.  The article specifically mentions the Speaker's opposition to the Senate proposal to increase the OHLAP family income limit from $50,000 to $75,000.  I've added one editing note in brackets [ ].

Also below is the text of an editorial in yesterday's Daily Oklahoman about the same issue.


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House speaker reveals blueprint for state budget

April 4, 2006
By Tim Talley of The Associated Press

House Speaker Todd Hiett opened the debate over the state budget Tuesday by proposing more than $500 million in tax cuts and rejecting Senate plans to accelerate teacher pay raises and expand a state-funded college scholarship program. 

Hiett said his tax cut plan, including eliminating the inheritance tax and an income tax cut of about 1.3 percent, is possible because of an estimated $1 billion in surplus revenue available next year due largely to economic growth. About $200 million has already been spent. 

"It's obviously an extraordinary year with a lot of surplus revenue," said Hiett, R-Kellyville. "I think this is the best opportunity Oklahoma has had in many years to grow the economy." 

While big on tax cuts, Hiett's budget plan includes modest spending increases including $1,200 across-the-board pay raises for teachers, a $56 million allocation that would pay for the second phase of Gov. Brad Henry's plan to bring teacher salaries to the regional average. 

Hiett said he does not support a proposed $3,000 across-the-board pay raise for state teachers, part of a $339 million education bill passed by the Senate. 

"We would be building the government as opposed to building the economy," Hiett said. 

The speaker also expressed opposition to a Senate plan to expand the number of students who qualify for free college tuition through the Oklahoma Higher Learning Access Program. 

"It would take quite a lot of convincing," said Hiett, a candidate for lieutenant governor this fall. His budget plan includes money to pay existing OHLAP obligations. 

"We should pay that bill before we consider expanding that," he said. 

A bill authored by Senate President Pro Tem Mike Morgan, D-Stillwater, would raise the maximum income level under which students are eligible for free college tuition from $50,000 to $75,000. The measure, pending in a House committee, increases the cost of the program by $27.3 million when fully implemented in 2010.  [Editing note:  Actually the program costs about $27 million this year.  2010 would be the first year of additional cost related to the $75,000 limit.  In 2010, the cost would be projected to be $10 million over the current projections at the $50,000 level.  The additional costs for the $75,000 level would continue to grow by about $12 million per year in the years after 2010. - Bryce] 

Hiett said he has not discussed his budget plan with Senate leaders or Gov. Brad Henry. Senate Appropriations Chairman Johnny Crutchfield, D-Ardmore, said Hiett appears to be negotiating the budget with news reporters. 

"At least that way we can get a glimpse of what he's for," Crutchfield said. 

Crutchfield said he is disappointed Hiett has not included new money for higher education and CareerTech, "two of the biggest economic engines we have in Oklahoma." 

"We have a unique opportunity this year to make significant investments that will pay dividends for the future of our state. We must, as we consider the budget, look beyond the next election and focus on the next generation," Crutchfield said. 

Hiett's budget plan dedicates much of the state's surplus revenue to one-time projects, including proposed cancer and diabetes centers and a new research tower for the Oklahoma Medical Research Foundation. 

It proposes annual spending increases for state drug courts, child abuse investigators at the Department of Human Services, roads and bridges and a variety of other programs.

Hiett has endorsed an income tax bill that would reduce Oklahoma's top income tax rate from 6.25 percent to 4.9 percent. It would reduce state revenue by $191 million in its first year and $480 million when fully implemented. 

The bill's author is Sen. Scott Pruitt, R-Broken Arrow, also a candidate for lieutenant governor. It was passed by the Senate and is pending on the House floor. The House earlier passed a separate bill by Hiett that would reduce the income tax rate to 5.85 percent, a $130 million cut. 

The House has also passed legislation to eliminate the inheritance tax at a cost of $87.1 million a year. The cut would benefit 3,200 of 1.6 million families in the state because spouses are already exempt and no tax is due for estates worth less than $1 million. 

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OHLAP's stability should be priority 

Oklahoman Editorial
April 4, 2006

THOUSANDS of Oklahoma students are getting a college education thanks to a scholarship program that rewards them with free tuition in exchange for taking tough classes and staying out of trouble. But a proposal to expand that program to include even more students is problematic. 

The Oklahoma Higher Learning Access Program serves students whose parents' annual family income is $50,000 or less. Senate President Pro Tempore Mike Morgan, D-Stillwater, wants to expand the eligibility cap to $75,000. 

We're all for helping as many students as possible go to college, regardless of their income levels. But the financial barrier for low- to middle-income students is substantial, and that's where the primary focus should remain. 

Expanding the program could increase costs significantly and we're concerned the neediest students may suffer. The scholarships already cost $27 million a year. As the program grows more popular and tuition rises, higher education officials predict the annual price tag could reach $110 million by 2015. 

It's worth every penny, but the state has no dedicated funding stream for the program. Making the promise of a paid-for education that the state can't keep is an unacceptable proposition. 

There are other ways to expand the program, if lawmakers deem it necessary. Students could be served on a sliding scale, with those most in need receiving more in tuition money than less needy students. We're not sure if that's the right approach either, but it's one alternative. 

We applaud those who want to help more students with financial aid for college. At the rate tuition is rising, even families with more money face a financial struggle to pay for higher education. But the state's ultimate goal should be to ensure the stability of the program under the current criteria before expanding it to include less needy students. 


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Bryce Fair 
Assoc. Vice Chancellor for Scholarships & Grants 
Oklahoma State Regents for Higher Education 
Phone:  (405) 225-9162 
Fax:  (405) 225-9230 
E-mail:  bfair at osrhe.edu 

Mailing Address: 
P.O. Box 108850 
Oklahoma City, OK  73101-8850 

Street Address: 
655 Research Parkway, Suite 200 
Oklahoma City, OK  73104