Governor outlines priorities for 2021
Gov. Kevin Stitt's third year in office will serve as a fresh start for the Republican who closed out the last legislative session at odds with leaders of Oklahoma's Legislature.
Forced to respond to the worst health crisis in modern history, the pandemic, budget woes and tension between the governor and legislative leaders derailed most of Stitt's policy agenda last year.
The tension came to a head when Stitt vetoed much of the proposed state budget, which the GOP- led Legislature quickly overturned in a historic rebuke.
In an extensive interview with The Oklahoman on Tuesday, Stitt said he's confident he has mended his relationships with legislative leaders.
Asked if he still would have run for governor if he knew he would have to tackle an unprecedented pandemic, Stitt didn't second-guess his actions.
“I'm honored to serve, and I take it in stride,” he said. “There's ups and downs.”
And with a quick knock on his wooden desk so as not to jinx himself, Stitt said he's optimistic he won't face a new, pandemic- sized challenge in the latter years of his term.
But for every governor, a new legislative session brings new priorities and challenges.
Budget breakdown
In the interview, Stitt hinted at his policy priorities for the year and said he's optimistic about the state's finances.
He indicated he's likely to unveil a flat budget to the Legislature on Monday when lawmakers convene for the governor's annual State of the State speech that kicks off the four-month legislative session.
“We should not have to cut the state agencies,” he said. “We're not going to be in a budget deficit situation. We can hold everybody flat.”
The budget state lawmakers enacted, without Stitt's support, for the current fiscal year included 4% cuts to most state agencies due to the unexpected economic downturn caused by the COVID-19 pandemic and plunging oil and gas prices.
Some of Stitt's policy priorities this year carried over from last year.
Stitt still wants to see changes to state employee protections, aims to slash state regulations and bureaucratic red tape and still supports universal licensing so Oklahoma can automatically recognize professional licenses and certifications granted by other states.
Citing an Oklahoma Department of Human Services decision to close half of its brick-and-mortar facilities, Stitt said he is supportive of efforts to consolidate state office space and increase the number of employees working remotely.
Last year, Stitt's office spent more than $1 million on consultants to advise on agency consolidation. The governor's office has not filled a public records request from The Oklahoman seeking recommendations from the consulting firm.
Some of the governor's State of the State speech also shouldn't come as a surprise to those who have been paying attention to his recent rhetoric.
The governor once again will publicly pressure Oklahoma's K- 12 schools to offer in- person education, despite the ongoing pandemic.
“Kids are safer in school,” he said. “The fact that some schools have not been open in Oklahoma City and Tulsa, some of the bigger districts, since last March, is a travesty.”
Stitt has little power over local school districts, but has for months pushed for districts to return children to classrooms, which has been met with resistance from some educators, medical professionals and superintendents.
The `People's Agenda'
Stitt said he has improved his relationships with House Speaker Charles McCall, Senate Pro Tem Greg Treat and the lawmakers who write the state budget since tensions flared last spring.
A key part of the governor's budget negotiating strategy is new Secretary of State Brian Bingman. The former Senate president pro tempore, who has close ties to many lawmakers, will participate in budget negotiations and help usher Stitt's policy priorities through the legislative process.
Bingman also is working with legislative leaders to craft a cohesive slate of policy goals for the upcoming session.
Instead of Senate leaders, House leaders and the governor all starting the session with similar but slightly different policy goals, Stitt wants to be unified from the start with “a People's Agenda.”
“That's kind of my dream to bring everybody together,” he said. Bingman and legislative leaders are still working out the details, Stitt said.
The governor didn't provide details of the agenda, but said it will could include tax and regulatory reform and policies to improve Oklahoma's pro- business climate.
Privatizing Medicaid
After torpedoing his SoonerCare 2.0 health care plan at the end of the 2020 legislative session, Stitt is starting this year with big plans to privatize Oklahoma's Medicaid program.
Stitt wants to contract with for- profit companies to outsource medical and dental care for many of the state's Medicaid recipients.
Many of the state's major health care associations and some Republican legislators oppose shifting Oklahoma's Medicaid program to what is often referred to as a managed care model.
“For 20 years, we've been at the bottom in health outcomes,” Stitt said. “I believe if you don't change and you don't innovate nothing's going to happen.”
The governor criticized the costs of Oklahoma's Medicaid program — the Oklahoma Health Care Authority, which oversees Medicaid, is the second-largest state agency in terms of state-appropriated dollars.
“We have a right, as a state, to manage that care and say, ` we want better outcomes and to make sure these people are getting healthier,'” Stitt said.
Legislative opposition to the governor's goal to overhaul Oklahoma's Medicaid program could set up a budget showdown between Republican legislators and Stitt. The managed care contracts the Health Care Authority will agree to with outside entities are contingent upon funding from the Legislature.
Stitt said he's unconcerned about rumblings that some legislators don't want to fund the contracts.
“I don't think that's going to happen because there are plenty of people in the House and Senate that appreciate changing this delivery model,” he said.
Pandemic response
Don't expect Stitt to drastically change his response to the COVID-19 pandemic anytime soon.
Asked about imposing any new business restrictions, Stitt said that's unlikely, although he continues to follow the COVID-19 data provided by the Oklahoma State Department of Health.
Should Oklahoma see a spike in hospitalizations or new challenges presented by emerging variants of the virus, Stitt said he will balance his three goals of protecting the health and lives of Oklahomans, keeping businesses open safely and getting kids back to inperson schooling.
“I'm not going to change direction from where I've led since March,” he said.
In the meantime, he's hopeful a recent decline in new COVID- 19 infections continues.
Stitt has praised the state's COVID-19 vaccine rollout, and said he's in contact with Oklahoma's federal delegation about trying to get more doses from the federal government.
Citing his ability to hire and fire the head of the Oklahoma State Department of Health, which has led the state's response to the pandemic, Stitt said he wants more control over state agencies. In his first year, state lawmakers gave Stitt hiring power at five of the largest state agencies.
But without citing specific agencies, Stitt said he wants oversight of at least 20 additional agencies. Shifting agency oversight from an independent board to the governor gives Stitt more power to carry out his policy agenda.
“The way it should work is the Legislature writes the laws and the budget, but the executive branch runs the state agencies,” Stitt said. “That's how it works in the federal system. That's how it works in most states.”
Four more years?
Stitt was mum on whether he's gearing up to run for another four- year term in 2022.
“I'll be making my decision very shortly and we'll be announcing that,” he said.
The governor recently registered his re- election campaign with the Oklahoma Ethics Commission. Registering does not commit Stitt to running in 2022, but allows the governor to fund-raise for a possible reelection bid.
If he does vie for a second term, Stitt already faces a primary challenger in former state Sen. Ervin Yen, an Oklahoma City anesthesiologist who has criticized the governor's handling of the COVID-19 pandemic.
Reporter Carmen Forman covers state government, politics and the COVID19 pandemic for The Oklahoman. Send story tips to cforman@oklahoman.com or connect on Twitter with @CarmenMForman. Support the work of Oklahoman journalists by purchasing a print or digital subscription today at oklahoman.com/subscribe.