As revenues decline, Henry rethinks vision; Salary increases for teachers and state workers won't be decided until the budget is negotiated

Gov. Brad Henry's legislative program fared well in the state Senate in the first three weeks of the legislative session, but the fate of many of his programs won't be determined until much later.

His proposals such as salary increases for teachers and state employees are appropriations issues that won't be resolved until he and legislative leaders write the final budget for the fiscal year that begins July 1.

Thursday was the deadline for Senate committees to act on Senate bills.

The state House's deadline for its committees to act on House bills is March 6.

The state equalization board approved figures showing legislators will have about $113.9 million less to spend this session than last. The Legislature spent $7.1 billion last session for the fiscal year that began July 1, 2007.

Henry told lawmakers not to panic but said he will have to revise his pay raise proposals.

Last week his proposal for a permanent funding source for the Economic Development Generating Excellence fund, a state research endowment, was approved by a Senate committee and sent to the full Senate.

His proposal for a "graduation coaches" program to mentor at-risk students and keep them from dropping out of school was sent to the full Senate by a committee recently.

His proposal for a consumer price index Web site for prescription medications died in committee.

His proposal for a $45 million bond issue to finance completion of the American Indian Cultural Center and Museum wasn't heard in committee. But the governor's office said there still could be a chance for this proposal if legislative leaders decide to authorize some bond issues this session.

How other bills are faring

Henry's bills are not the only ones in limbo in the wake of gloomy revenue projections for funding government next year.

Passage of bills to reduce taxes is highly unlikely because of less money for appropriations, Republican and Democrat legislative leaders said.

Taxes

A bill to eliminate the sales tax on groceries was not considered and is dead.

Still alive is a bill to expand the back-to-school state sales tax holiday. It would add school supplies to the list of items that can be purchased during the sales tax holiday in August. Current law exempts only students' clothing from the sales tax.

Also still available for negotiation by leaders is a bill to lower the income tax rate from 5.5 percent to 5.25 percent in 2009. It's alive but probably won't be enacted because of state revenue problems.

Insurance

Killed was a bill to require health insurance coverage for the treatment of autism.

Approved was "Steffanie's Law," a bill to require insurance companies to cover some medical costs of patients who are undergoing clinical trials for new treatments.

Smoking

A Senate committee approved a bill that would ban smoking in all public places in Oklahoma.

Current law allows exemptions for places such as bars that do not serve food as a restaurant does. It also permits a restaurant to build a separate smoking room with a separate ventilation system.

Hotels are permitted to allow smoking in 25 percent of their rooms.

These exemptions would be eliminated by this latest bill.

Energy

Dying was a bill to require state agencies to use alternative fuels in some of their state vehicles.

Also left in committee and dead for the session was a bill that would have required schools to develop a plan for cutting energy costs.

Combining agencies

Legislation passed in a Senate committee that would put the state medical examiner's office under the Oklahoma State Bureau of Investigation.

A bill won committee approval to merge the operations of the Criminal Justice Resource Center into the OSBI.

Another bill that still is alive would create an Office of Accountability and Innovation to conduct performance audits of agencies, recommend best practices for government agencies, review the effectiveness of tax incentives and bring new innovations to government.

Highways and bridges

A Senate committee passed a bill that would give more money to the state Transportation Department.

The bill would eliminate a provision in the law that keeps more money from going to the Transportation Department if the projection for revenue growth for the state is less than 3 percent.