GOP struggles to defend slush fund, projects for ‘rural’ OKC

With solely days left on this yr’s legislative session, Oklahoma state lawmakers deposited $250 million right into a “slush fund”-style account with no authorized restrictions on how that cash will be spent.

Supporters struggled to clarify the proposal, providing solely imprecise descriptions of undefined “rural” financial improvement that have been contradicted by different supporters.

Though the Legislature permitted creation of the brand new quarter-billion-dollar fund, it drew bipartisan opposition and the dearth of readability had even Democrats, who usually wouldn’t have an ideological downside with beneficiant government-spending insurance policies, urging officers to faucet the fiscal brakes.

“That is an extremely ambiguous proposal,” stated state Sen. Julia Kirt, D-Oklahoma Metropolis. “We might by no means settle for this sort of ambiguity from businesses or from outdoors contractors attempting to work with us. We might count on a technique. We’d count on clear outcomes.”

Home Invoice 4456 creates the “Progressing Rural Financial Prosperity Fund” (PREP). The one substantive language within the invoice states that it will likely be “topic to legislative appropriation or switch as offered by regulation and shall encompass all such monies because the Legislature could direct to be appropriated or transferred to stated fund.”

Home Invoice 4464 deposits $250 million into the fund.

When the payments have been heard within the state Home and Senate, lawmakers from each events raised questions concerning the monetary knowledge of the fund and the dearth of safeguards to stop abuse and misspending.

“What standards will people want (to satisfy) so as to have the ability to apply for this fund, or what standards will the Legislature be utilizing so as to delegate or disseminate this cash?” requested state Sen. Carri Hicks, D-Oklahoma Metropolis.

“The precise standards has not been designed,” responded state Senate Appropriations Chair Roger Thompson, R-Okemah.

A number of lawmakers argued particular tasks ought to be recognized earlier than committing $250 million to the fund.

“Might we not have had these tasks laid out, after which resolve what tasks we’re going to get funded so we might have voted on that?” stated state Rep. Tom Gann, R-Inola. “I simply assume that we’re simply too cavalier in the best way we make the choices round right here on billions of {dollars} and never sufficient consideration for the person taxpayer.”

Kirt famous that state street funding is distributed based mostly on an eight-year plan that’s based mostly on precise, measurable wants and allotted accordingly, in sharp distinction to the provisions of the PREP Fund.

“How can we anticipate that these one-time funds are going to be spent in any form of strategic manner in the event that they’re not a part of that form of planning?” Kirt stated.

“If we might apply … your reasoning to this explicit query—that we needed to have a definitive reply earlier than we appropriated any cash or began any plan—we might be at a continuous standstill,” Thompson replied.

Supporters proclaimed the $250 million fund would profit rural communities.

State Rep. Trey Caldwell, R-Lawton, stated the unknown tasks funded by way of the invoice would “revitalize rural Oklahoma,” including that “Oklahoma Metropolis and Tulsa have had tons and tons of issues” funded by state lawmakers and it was time to “advocate for rural improvement.”

He additionally attacked rural conservatives who questioned the proposal.

“It actually saddens me that there are some rural members of this caucus that don’t care about Wilburton, Oklahoma, and don’t care about Frederick, and don’t care about Burns Flat, and don’t care about Mayes County, and don’t care about Delaware County, and don’t care about Cimmaron,” Caldwell stated.

However Caldwell’s claims have been instantly contradicted within the Senate when lawmakers famous that supporters stated the measure would profit all 77 of Oklahoma’s counties regardless of the fund being titled a “rural” financial prosperity fund.

It seems lawmakers’ definition of “rural” apparently contains each inch of Oklahoma, together with the city cores of Oklahoma Metropolis and Tulsa.

“I’ve been express and clear that the 2 metro areas will probably be a part of this plan,” stated state Senate President Professional Tempore Greg Deal with, R-Oklahoma Metropolis. “We didn’t have something to do with the naming of the fund because it came to visit, however we will probably be making investments all throughout your entire state of Oklahoma. We is not going to be excluding the metro areas from consideration.”

Supporters even stated the PREP Fund would go to “shovel-ready” tasks—though none could possibly be recognized—echoing the rhetoric of Obama officers touting that administration’s 2009 federal “stimulus” plan.

“This can be a very tough draft, so there’s not an settlement but with our good buddies on the opposite aspect of the rotunda but or the manager on the framework,” stated Home Speaker Professional Tempore Kyle Hilbert, R-Bristow.

He steered PREP funds might pay for industrial park upgrades for issues reminiscent of water, sewer, broadband, electrical and gasoline, or the cash could possibly be used to subsidize hospitals, presumably to entities that present matching funds.

However state Rep. Emily Virgin, D-Norman, famous that “none of that’s on this invoice but.”

State Sen. Roland Pederson, R-Burlington, stated the newly created fund “will set a stage for Oklahoma to be a world commerce companion” with “different international locations world wide.”

However state Sen. Warren Hamilton, R-McCurtain, stated the laws was “a type of authorities interference or meddling or ‘help’ that possibly a free-market financial system can be finest left with out.”

HB 4456 handed the Oklahoma Home of Representatives on a 72-17 vote and the Oklahoma Senate on a 32-13 vote.

HB 4464 handed the Oklahoma Home of Representatives on an 81-9 vote and the Oklahoma Senate on a 31-14 vote.

Regardless of the dearth of particulars related to PREP Fund spending, each payments have been nonetheless handed as “emergency” measures so they may take impact instantly, quite than later this yr.

The 2 measures grew to become regulation with out Gov. Kevin Stitt’s signature.

Opponents are uncertain that future, undefined PREP Fund spending will probably be useful to most of Oklahoma’s working households who paid the taxes that have been deposited into the fund.

“I simply don’t like the method that we’ve gone by way of right here,” Gann stated throughout flooring debate, “the place we create these funds, throw cash into it, after which simply hope—simply hope—that every little thing works out okay.”