Fallin prefers special session while awaiting legislative deal
Oklahoma Gov. Mary Fallin on Wednesday said she wants a special session to fill a $215 million shortfall in several agencies’ budgets, but she now must wait for lawmakers to strike a deal.
Four agencies lost that expected cash after the Oklahoma Supreme Court struck down a cigarette “fee” this month, the Departments of Mental Health and Substance Abuse Services, Human Services, the Oklahoma Health Care Authority and the commission that enforces alcohol and tobacco laws. Without reappropriation, the agencies will have to restructure their budgets.
“A special session is the best option,” Fallin said. “Failure to meet in special session would mean $215 million would be cut mostly from these three state agencies. These agencies and the people they serve cannot sustain the kind of cuts that will occur if we do not find a solution.”
Fallin also warned lawmakers that the executive branch can’t make up the money with existing state funds.
“No money can be spent from any state fund unless the Legislature specifically appropriates it,” said Fallin. “Let’s be clear. The director of the Office of Management and Enterprise Services does not have the authority to transfer monies to the affected agencies from different sources without legislation directing him to do so.”
Without legislative intervention, the state’s mental health agency said it would
run out of state appropriations in November. OHCA, which administers Medicaid, said it would in run out January, and DHS said it would in May.
Several organizations that represent the state’s health care infrastructure met this week to discuss the situation. Nico Gomez, president of the Oklahoma Association of Health Care Providers, said they left the meeting without answers.
“We didn’t come up with any concrete solution because the solution has to come from the Legislature and the governor,” Gomez said. “We’re asking legislators to keep the promise they made in the last budget. And their promise was we weren’t going to cut those Medicaid rates that support our seniors and individuals with disabilities.”
Lawmakers respond
House Speaker Charles McCall didn’t have a response to the governor’s news release on Wednesday, but a spokesman said the ideal course is still to wait and see what the court does with other new revenue streams that have been challenged.
Senate President Pro Tem Mike Schulz issued a statement that echoed the speaker’s office.
“If the governor calls a special session, the Senate will abide by her call,” Schulz said. “While a special session seems inevitable, there are still court cases pending. Just as important as addressing this quickly, we must address this correctly and completely. As we wait for other court rulings, the Senate continues to look at all the available options to best help the three health care agencies facing budget cuts.”
Craig Jones, president of the Oklahoma Hospital Association, said the Oklahoma Health Care Authority told his group that without the cigarette fee, Medicaid providers could see an 8-percent cut in reimbursements.
“That’s on top of the 18-percent cuts that providers have taken over the last three to four years combined,” Jones said.
The authority said it is trying to avoid rate cuts if possible and is working with lawmakers to find a solution.
“Across-the-board provider rate reductions save the agency about $21 million in total funds (including $8.6 million state dollars) for every 1 percent reduction,” said spokeswoman Jo Stainsby. “However, we have not started the rate reduction process at this time.”
House Minority Leader Scott Inman, whose bloc of Democrats are key to negotiating significant new revenue measures, said he agrees that a special session is necessary.
“House Democrats have already put forth a constitutional, bipartisan plan to Restore Oklahoma and are ready to negotiate in good faith with the governor, speaker, and pro tem to find a viable, longterm budgetary solution before a special session begins,” he said, referencing the group’s budget proposal.
Among other items, the Democrats’ Restore Oklahoma plan would include raising the tax on oil and natural gas production to 7 percent.