Getting The Government Out Of The Retirement Business

Getting The Government Out Of The Retirement Business
24 June 2007

One of the biggest road blocks to government reform is the approximate 7 billion dollar liability that exists in the Teachers’ Retirement System. The problem is, these are benefits that the state does not currently have to give. We have this problem because liberal big-spending politicians have irresponsibly increased benefits without paying for them.

Since 1991, the Legislature has increased the unfunded liability in the Teacher Retirement System fourteen times. The increase in the unfunded liability, due to legislation from 1991 to 2005, has been $1.3 billion. The result is that the Oklahoma Teachers’ Retirement System is the third most poorly funded public pension system in the country.

This year liberal politicians sponsored at least ten bills to increase benefits without finding new ways to dedicate resources or reform the system.

In order to deal with attempts to raid the retirement system, the House has implemented the Oklahoma Pension Legislation Actuarial Analysis Act (OPLAAA). OPLAAA establishes three criteria that bills amending the retirement system must meet. First, benefits cannot be increased by the Legislature without paying for them. Second, actuarial investigation of the bill is required to provide the true cost of proposed legislation. And third, a one year delay mechanism is established that allows more time to assess the merits of retirement legislation. This forces fiscal impact legislation to lay over for a year before it can be considered. This way politicians and special interests should not be able to drum up sentiment in the heat of the moment to generate enough votes to raid the retirement system.

It appears there were no new successful raids on the Teachers’ Retirement System this year and legislation was passed to increase funding in order to begin drawing down the amount of the liability.

However, I believe teachers’ retirement will always be a problem as long as the government remains in the business of managing retirement funds.

For one thing, government pension fund managers, in their efforts to maximize investment, have made questionable investments in foreign companies which invest in terrorist sponsoring nations.

Also, the OPLAAA law can be changed at any time. Liberal politicians can amend OPLAAA in the same bill by which they are proposing to raid the retirement funds. Until OPLAAA is placed into the state’s constitution (which can only be amended by a vote of the people) it will guard the retirement fund much like a bulldog without teeth.

It is my belief that state government should get out of the retirement business and allow new enrollees in the state retirement plans to have ownership of their own retirement accounts.

Known as a defined-contribution plan, these retirement accounts would be entirely controlled by their owners who could invest as they see fit, instead of the government having control of their money. This means that teachers who want a different job could take their retirement plan with them in the form of a 401k. No longer would they be trapped in a job they do not like just because they have state retirement. Also, since the state would be forced to make its contribution directly to that teacher’s 401k, the politicians would be unable to raid the account because the teacher would own the money. And, with a 401k, there would arguably be greater inheritability and survivability benefits for the owner of the account.

Under this system, the government would gradually get out of the retirement business and save the cost of having to manage the billions of dollars it controls in retirement funds. And, people in the retirement system would be empowered with the ability to invest their own accounts.

I believe this plan would shrink the size of government while giving control to the people. I am strongly committed to this reform and as always, appreciate your feedback at 557-7350 or www.housedistrict31.com .

NRSC Starts New Website: "The Cost Of Democrats.Com"

There is a perception (and it’s correct) that the left has been far more effective at harnessing the power of the Internet for grassroots organizing and fundraising. They’ve even coined a new phrase for their activists calling them the “netroots.” The technology gap was even more evident after the first quarter fundraising reports were released. Hillary Clinton and Barak Obama raised tremendous sums on the Internet, but that wasn’t the underlying story. The story was that Clinton had amassed 50,000 + contributors while Obama doubled her amount with over 100,000. As has been widely reported, Obama’s contributors gave in small amounts, which makes them eligible to keep giving and giving until they reach campaign finance limits.

We received an email recently from the National Republican Senatorial Committee that suggests the Republican Party – specifically the Senatorial Committee -is making a serious effort to close that gap and compete with the Democrats on the Internet. We’ve learned the committee has an “e-press secretary” that monitors the blogs, and, they’ve started a new site called “Cost of Democats.com” The site claims that in the first 100 days of Democratic Senate control, they have passed a “$700 billion dollar tax increase.” According to the site, that would equate to an extra 2,500 on the average Oklahoman. There are other features on the site including videos and links to other blogs. The RNC has a lot of ground to make up, but this is an encouraging start.

Letter From Sen. Inhofe

Hat tip: Oklahoma Opinions

We reported to you last week that Sen. Inhofe was starting an online petition for Americans to voice their displeasure at the resurrection of the “Shamesty Bill” in the Senate. The above map shows the response so far. Below is a letter from Sen. Inhofe:

Word is already spreading around Washington about our efforts to stop this immigration bill, and every day we’re closer to victory. It is my hope I can write to you a week or two from now to celebrate the defeat of this bill and a renewed focus on border security and the enforcement of exiting immigration laws.

In addition to sharing the good news, I’m writing to you today for two reasons:

Our work isn’t done yet. There is plenty of time for more ‘closed-door’ deals and the pressure on undecided Senators right now is incredible. Let’s keep building on the early success of the petition by inviting five friends to join us in signing it. Click here to use our Forward to a Friend page. We’ve provided the invitation text; all you need to do is provide email addresses.

I also want to share with you a new Secure Borders Now Blog that will keep you informed on the latest immigration bill details. I’ll keep track of all upcoming votes, speeches and news, and shine a light on the bill’s progress through the Senate. I’m specifically sharing the link with folks who have signed the petition because I want you to help spread the word and keep our citizens up to date with the latest information. Click here to read the Secure Borders Now Blog.
Thank you again for your help in making the petition a tremendous success in such a short period of time. The word is getting out through your e-mails, word of mouth, in blogs, and in forums. It’s humbling to be reminded in such a powerful way that elected officials are responsible to those who elected us. I’m proud to be able to serve Oklahomans and so many Americans across the country on this issue in the U.S. Senate.

Best wishes,

Jim Inhofe

Rep. Terrill Quoted in Washington Post

With the Senate taking up the illegal immigration bill once again, the Washington Post reports that over 1,100 pieces of legislation were written in the state legislatures this year to address the problem. Rep. Terrill’s quotes from the article are below:

“Illegal immigrants will not come to Oklahoma if there are no jobs waiting for them,” said state Rep. Randy Terrill (R), who wrote his state’s law, one of the most sweeping in the country. “They will not stay here if there are no government subsidies, and they certainly will not stay here if they know that if they come in contact with one of our officers, they will be physically detained until they are deported.” Read more…

OKGOP Chairman: "Special Prosecutor Needed to Probe Campaign Contributions"

FOR IMMEDIATE RELEASE

Contact: Gary Jones
June 25, 2007 405-528-3501

This Wednesday Steve Phipps is scheduled to plead guilty as part of a plea agreement with the United States Government in connection with an FBI investigation of political corruption in Southeast Oklahoma. His estranged business partner, former Democratic State Senator Gene Stipe, will be back in court Thursday for a probation revocation hearing. Stipe, who is in the midst of a 5 year-probation sentence for illegal campaign activities, appears to be facing the judge in connection to similar charges of illegally funneling contributions to Congressman Dan Boren’s 2004 congressional campaign.

The federal investigation into the corrupt political shenanigans of Gene Stipe has sparked a grassfire of additional illegal activities and has grown to include a number of high level Democrats. While the federal government is doing its job, the same can not be said of the State of Oklahoma. While federal prosecutors are handing out indictments for federal crimes, justice will not be served without a state investigation and charges sought at that level. The feds have filed charges in connection with donations to Boren, but what about more than a hundred thousand dollars in contributions to State Auditor Jeff McMahan, Attorney General Drew Edmondson and Governor Brad Henry? To add insult to injury it appears that it was our own state tax dollars illegally funneled into these campaigns.

The Oklahoma officials normally responsible for investigating and prosecuting state related crimes have been implicated and may very well be involved themselves. It is imperative that Governor Brad Henry name a special prosecutor to pursue charges in this corruption ring. Attorney General Drew Edmondson has made comments that state charges may be pursued. However, he himself has been caught up in the straw donor scam along with the state auditor, not to mention the Democrat Leader of the Oklahoma Senate, Mike Morgan.

It’s time for an independent state investigation. It’s time for Governor Henry to show leadership and name a special prosecutor. We need someone to investigate these crimes and stop those who are abusing our state and our citizens. Sadly, political corruption has been a part of our past hundred years. It need not be tolerated in our future.

Related

BUBBAWORLD dot NET: “Big Week for Gene Stipe”

Should Journalists Donate to Campaigns? MSNBC Research Reveals Journalist Gave 9-1 to Democrats

Elk City News Publisher Donated $2,500 to AG Edmondson in ‘06

Edmondson Accepts Contributions from Tulsa World Chairman in ‘06; Also Receives Paper’s Endorsement

Anyone who reads the Oklahoma Political News Service regularly knows that we have railed for months on the incestuous relationship between the Oklahoma Media and Oklahoma Politicians - particularly Democratic ones. We always felt it was unethical for a member or owner of the media to be contributing to a politician’s campaigns.

Today, the MSNBC website has published a list of more than 140 journalists who donated to political candidates in the last three years. The network counted donations from 2004 to 2007, and listed journalists in every discipline – from public radio to online. The sample found that the journalist gave 9-1 to Democrats. Surprise, surprise!

The political reporter for the St. Louis Post Dispatch wrote this today regarding her and other journalists giving money to politicians:

“The Post-Dispatch has had a written policy for some time that bars or discourages (depends on staff member’s position) campaign contributions or public political activity, while also reaffirming journalists’ right to participate in the political process (voting.) Most reporters in the industry — (there’s tens of thousands) — do not donate money to political candidates, because of concerns about public perception of bias. The St. Louis chapter of the Newspaper Guild, the union which represents reporters and others at the Post-Dispatch, also has a provision in its by-laws that the chapter will make no political contributions.”

Maybe the Oklahoma media could take a lesson or two here. Just a thought.

Standing Up for All Our Colleges, Universities & Students

By Senator Jay Paul Gumm, D-Durant

Hello again, everybody! We who represent rural areas often fight the notion that big cities should come first and small towns should get crumbs in the state budget.

A bipartisan group of senators joined to fight that notion when it came to funding higher education. The higher education budget included $34 million for capital improvements; most was directed – as you might imagine – to The University of Oklahoma and Oklahoma State University.

I represent both a regional university – Southeastern Oklahoma State University in Durant – and a community college – Murray State College in Tishomingo. Originally, Murray State College and all the state’s community colleges were left out of capital improvement funding.

Then, 32 senators – both Democratic and Republican – joined to oppose a funding formula that was patently unfair. The result of our efforts was that the money going to regional universities was spread out to include community colleges. OU and OSU were held harmless. It was the classic “good news/bad news” situation.

Community colleges were included in the capital funding, but at the expense of regional universities. Again, the situation was unfair, but less so. It is not right that OU and OSU did not share in the burden to make funding fair to all the colleges and universities.

While the Legislature has the power to appropriate money to the state’s higher education system, we do not have the power to direct where that money goes within the system. Oklahomans created the higher education system as a constitutional entity. That constitutional provision gives the Regents for Higher Education the power to take what money we send them and distribute it among the state’s colleges and universities as they see fit.

Earlier this month, 15 of us who were part of that bipartisan coalition sent the Regents for Higher Education a letter asking the board to “exercise its constitutional authority to allocate to each institution according to its needs and functions.” In short, we asked the Regents to use their constitutional authority to ignore the earmarks placed in the capital improvements bill by legislative leaders.

Those earmarks unfairly benefit only two institutions to the detriment of all the others. As of now, we do not know if the Regents will take that step; predictably, those who advocate for OU and OSU are already raising red flags, saying if the Regents do the right thing, it would put at risk very popular programs at those universities.

That’s called the “Washington Monument” strategy. Whenever Congress proposes cutting the National Park Service budget, the Park Service says it will close the important and popular Washington Monument, ending talk of budget cuts.

The fact is reallocating the $34 million in a more fair manner will boost campuses across the state without creating undue hardships at OU and OSU, the two wealthiest and best funded universities. I hope the Regents give our proposal serious consideration.

Thanks again for reading the “Senate Minute,” have a great week, and may God bless you all.

Inhofe Launches Secure Borders Petition

Oklahoma Senior Senator Jim Inhofe recently announced the creation of an online “Secure Borders Now” petition that invites all American citizens who oppose the comprehensive immigration reform bill set to be resurrected in the Senate this week or next.

Senator Inhofe, as quoted in a campaign press announcement:

“Unfortunately it appears many in the Senate remain deaf to the voices of the American people, as yet another backroom deal has emerged designed to revive the fatally flawed immigration bill and its immediate path to amnesty. The ‘Secure Borders Now’ petition gives Americans an opportunity to voice their opposition. I hope my constituents and citizens from all across our country will take action, sign the petition and show how many Americans are strongly opposed to this bill.”

According to a representative from the campaign, the petition has already generated thousands of signatures from across the country since its launch last Friday.

The petition remains available online at www.SecureBordersNow.com

HD-31 Transportation Update

One of the foremost challenges facing those who live in Logan and Oklahoma Counties is that of transportation. Due to recent growth in our area, tremendous demands are being placed on our road infrastructure.

An important concern of local voters is to reverse the way state government diverts millions of dollars of motor vehicle taxes (monies we pay when we register our vehicles) into general government spending instead of transportation funding.

Because of these concerns and the needs faced by our district, I requested the Speaker of the House to appoint me to the House Transportation Committee. Serving as a member of the committee allows me to work closely with the Oklahoma Department of Transportation, specialize in the area of transportation policy and support the current House leadership with their goal of ensuring that the money which should be used for paving roads is indeed used for that purpose.

Currently, over 40% of the money generated from vehicle registration fees is diverted for non-transportation purposes. However, beginning in July 2007, county roads will be eligible to receive an additional 5% of motor vehicle taxes. This should amount to around $28 million in new funding. In 2008, counties roads will receive 10% of motor vehicle taxes and then 15% beginning in the summer of 2009. This is money that was previously used for non-transportation purposes. Once fully implemented, county road projects will receive about $85 million per year in new revenue as a result of recent funding reforms.

State funding for all roads and bridges has nearly doubled since 2005, increasing from about $205 million per year to $395 million this year.

Just a few years ago, state road funding averaged around $200 million per year with approximately $70 million going to bond payments. That left relatively little cash for actual road maintenance. It is obvious that past legislatures raided what should have been transportation funds and used the money for other purposes, such as legislative pork projects.

One area where the impact of this new funding will be felt is in South Logan County, where County Commissioner Mark Sharpton has received approval for over 3.6 million dollars to be used for paving five miles of Coltrane Road from Waterloo to Seward. This improvement will be the first time in many years that a major south county section line road will be upgraded from dirt to pavement. The potential economic impact to the area should be substantial.

In North Logan County, County Commissioner Monty Piercy won approval from the Department of Transportation for using the same funding method to expend $950,000 to build a new county bridge over Skeleton Creek. And, in Guthrie, the Department of Transportation is expected to expend about 5 millon dollars to replace the Guthrie viaduct in the next several years.

I believe this new funding should just be the first step in the effort to ensure that all the money from motor taxes is applied to roads. Senator Patrick Anderson and I have put together a strategy to advocate for both a House and a Senate bill to see that even more of the motor tax money currently used for non-transportation related purposes is applied to improving transportation in growth areas such as Logan County. The implementation of this policy would allow ODOT to oversee the upgrading of section line roads in counties which experience rapid growth.

In the future I will continue to support these and other transportation reforms. I look forward to providing additional updates with specific information on the transportation challenges and improvements in Logan and Oklahoma counties. I receive a number of calls from constituents with transportation related concerns and am always happy to help as I can. You can reach me at 557-7350 or www.HouseDistrict31.com.

Tip Line: Reader Questions Foshee’s Campaign Strategy

A reader sent us their opinion of this story in The Oklahoman today. Once an ambulance chaser, always an ambulance chaser?

“A former city councilman, accompanied by a woman whose husband and son died in a crossover collision last month, called on the state Thursday to install median safety barriers on Interstate 44 in South Oklahoma City. But the work already is planned.

Jerry Foshee said the deaths on May 17 of Michael Tiderman, 38, a firefighter, and his son Justin, 11, were preventable if safety barriers had been in place when a car crossed the median and crashed into their vehicle on I-44 near SW 119.” Read more…

“HMM, Interesting, since if you read the story THEY ARE ALREADY PLANNED TO GO UP. So I guess his strategy is, find out when projects are started and almost finished, hold a press conference so he can claim credit. Never mind he never bothered to contact ODOT, but conisdering his “experience” on the OKC council, I would guess he knew they were coming. If you check out also ODOT’s five year plan online, they are slotted for installation in August or September of this year! What a blowhard Never mind he is using the death of a Firefighter for his political gain.”

The Oklahoma Politcal News Service always welcomes tips and commentary from our readers. Thanks!