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STATE OF OKLAHOMA SUBMITTED BY MARY FALLIN, GOVERNOR TO THE SECOND SESSION OF THE 53RD OKLAHOMA LEGISLATURE EXECUTIVE BUDGET FOR FISCAL YEAR ENDING JUNE 30, 2013 Mary Fallin Office of the Governor State of Oklahoma To the Citizens of the Great State of Oklahoma and the Oklahoma Legislature: It is my pleasure to submit for your consideration the FY‐2013 executive budget. The plan I have put forward is a responsible budget that accomplishes the goals of reducing the tax burden on Oklahoma citizens, supporting core government functions, holding the line on spending and demanding a more efficient and effective state government. The tax proposal submitted within this budget, titled the "Oklahoma Tax Reduction and Simplification Act," provides immediate tax relief while setting the state on a course to completely eliminate the personal income tax. It is a bold, game‐changing plan that will allow Oklahomans to keep more of their hard earned money, stimulate job growth and make Oklahoma a more attractive place to locate or expand businesses. It is also a responsible plan that benefits Oklahomans in all income tax brackets and that recognizes the need to adequately fund state services. Addressing our budget needs for FY‐2013 is only part of the important task that lies before us. Continuing to improve our educational institutions and to build a more highly skilled, better educated workforce will be essential to maintaining Oklahoma's impressive economic growth in years to come. Included also in this budget are proposals to invest in major improvements in Oklahoma's highway transportation system, currently ranked as one of the worst in the nation. By repairing all currently known structurally deficient highway bridges, Oklahoma can become a leader in transportation, and thus further stimulate job growth and economic development. Energy will also continue to be a priority in Oklahoma, as it has always been. While Oklahoma is destined to remain a leader in production, energy efficiency is an area that requires major improvement. This document outlines key steps that can be taken to increase efficiency and save taxpayer dollars. Finally, Oklahoma's poor health indicators continue to generate personal tragedy while dragging down the state's economy. Several key programs to increase access to care and to reward healthy life choices are included in this year's budget. I ask the Legislature and the Citizens of Oklahoma to come together in support of this agenda. If we do so, I am certain we can rise above the current budget struggles and emerge as a stronger, healthier state. Sincerely, Mary Fallin Governor STATE CAPITOL BUILDING 2300 N. LINCOLN BLVD., SUITE 212 OKLAHOMA CITY, OKLAHOMA 73105-4801 (405) 521-2342 FAX (405) 521-3353 OKLAHOMA OFFICE OF STATE FINANCE February 6, 2012 Citizens of the State of Oklahoma Members of the Second Regular Session of the Fifty-Third Legislature Governor Mary Fallin's FY-2013 budget consists of the following two documents. Both are available on the Internet. You can view them by accessing the Oklahoma Home Page, the Home Page of the Office of the Governor, or the Home Page of the Office of State Finance. The Oklahoma Home Page address is: http://www.ok.gov. "FY-2013 EXECUTIVE BUDGET, Volume I" This document contains Governor Fallin's budget recommendations to the 2012 Legislature. It includes a discussion of state revenues, a summary of her proposed budget and explanations of budget recommendations for state agencies. "FY-2013 EXECUTIVE BUDGET, Volume II- HISTORICAL DATA" This document is available online and includes detailed historical financial information about each agency of state government. The information is arranged by Cabinet Department and Branch of Government. The individual display for each agency/entity of government includes the following: Mission of the Agency Description of the Board/Commission that governs the agency Description of agency Duties/Responsibilities Constitutional and Statutory References related to the entity Information regarding agency workload Expenditure and personnel data for FY-2010, FY-2011 and FY-2012 2300 North Lincoln Boulevard, Room 122, Oklahoma City, OK 73105-4801 Telephone (405) 521-2141 FAX (405) 521-3902 Executive Summary FY‐2013 Executive Budget Governor Fallin's FY‐2013 Agenda Tax Reform Governor Fallin believes that lower taxes lead to job creation, increased productivity and greater prosperity. To further reduce the tax burden on working Oklahomans and to stimulate economic growth, the governor has proposed the Oklahoma Tax Reduction and Simplification Act. The governor's plan represents the boldest, most significant income tax reduction in state history. In her words, it is a "game changer" for Oklahoma. Oklahoma Tax Reduction and Simplification Act Governor Fallin's tax proposal replaces Oklahoma's complicated seven bracket income tax structure, which taxes the first penny that every Oklahoman makes, with three new lower, flatter and simpler rates. These tax cuts would go into effect on January 1, 2013. This plan represents a tax cut for the vast majority of taxpayers in every income bracket without increasing other taxes, or shifting the burden on to others. Furthermore, the governor's plan achieves a large, across‐the‐board tax cut while protecting core government services without adversely affecting the working poor and middle class. Governor Fallin's Plan vs. Current Structure Single Returns Governor Fallin's Plan Current Structure Bracket Taxable Income Tax Rate Bracket Taxable Income Tax Rate 1 $0 under $15,000 0.000% 1 $0 under $1,000 0.50% 2 $15,000 under $35,000 2.250% 2 $1,000 under $2,500 1.00% 3 $35,000 and above 3.500% 3 $2,500 under $3,750 2.00% 4 $3,750 under $4,900 3.00% 5 $4,900 under $7,200 4.00% 6 $7,200 under $8,700 5.00% 7 $8,700 and above 5.25% Married Joint, Head of Household, Surviving Spouse Returns Governor Fallin's Plan Current Structure Bracket Taxable Income Tax Rate Bracket Taxable Income Tax Rate 1 $0 under $30,000 0.000% 1 $0 under $2,000 0.50% 2 $30,000 under $70,000 2.250% 2 $2,000 under $5,000 1.00% 3 $70,000 and above 3.500% 3 $5,000 under $7,500 2.00% 4 $7,500 under $9,800 3.00% 5 $9,800 under $12,200 4.00% 6 $12,200 under $15,000 5.00% 7 $15,900 and above 5.25% A‐1 FY‐2013 Executive Budget A Path to Prosperity Reductions in the personal income tax will increase individual purchasing power and business expansion, which will result in increased revenues from other sources, such as the sales tax, corporate income tax, excise tax and other tax revenues. In terms of growth, employment, and other economic indicators, we know that on average, low‐taxed states outperform high‐taxed states. According to Americans for Prosperity, "over the past decade, non‐income tax states have seen 59 percent economic growth, versus just 38 percent for high‐income tax states." In addition, "job growth has been 4.7 percent in the non‐income‐tax states, while high‐income tax states actually lost 2.9 percent of their jobs." Today, Oklahoma ranks 38th in the nation in terms of the individual income tax rate according to the Tax Foundation. At the start of Fiscal Year 2011, the states with the lowest top statutory income tax rate include Pennsylvania at 3.07 percent, Indiana at 3.4%, Michigan at 4.35 percent, Arizona at 4.54 percent and Colorado at 4.63 percent. Governor Fallin's tax cut places Oklahoma squarely in competition with those lower‐taxed states at a top statutory income rate of 3.5 percent, and would rank the state as the second‐lowest in the region among Arkansas, Kansas, Louisiana, Nebraska, New Mexico and Texas. After 2013, the governor proposes further reductions by cutting the remaining income tax an additional quarter point in every year where the state of Oklahoma hits a revenue growth trigger of 5%; eventually eliminating the income tax for every Oklahoman. Governor Fallin's income tax plan is a bold, responsible and pro‐economic growth measure that will lead to greater prosperity for all Oklahomans for decades to come. Tax Credits and Transparency Governor Fallin recognizes that the current tax credit structure in Oklahoma often forces the state to pick winners and losers. That is why the governor plans to eliminate tax credits that cost the state approximately $200 million under the current tax structure in order to produce savings within government, eliminate waste and ensure that all Oklahomans in every income tax bracket are winners by allowing them to keep more of what they have worked so hard for. In addition, Governor Fallin supports efforts to increase and expand transparency to the current tax expenditure reporting system and state Open Books web site, by providing more details on all state tax provisions such as present and future cost estimates, the number of recipients, and more. Additional savings In addition, Governor Fallin's simplification of the system will save the Oklahoma Tax Commission an estimated $300,000 in processing, printing and mailing costs in Fiscal Year 2014. This represents savings that could be used to hire five to six additional compliance officers who could help generate more than $2 million a year in uncollected sales and use tax. Teachers' Retirement System and Ad Valorem Acknowledging the income tax reduction's effects to other funds, Governor Fallin proposes to appropriate $7.9 million to OTRS and the Ad Valorem Reimbursement Fund to ensure each is funded as promised in FY‐2013. A‐2 FY‐2013 Executive Budget Government Efficiency Performance Measurement As shareholders in the business of state government, the public must be confident in the efficiency and efficacy of the "organization." To ensure Oklahomans have that certainty, and to reduce government waste and increase accountability within agencies, the governor recommends revamping the statewide performance measurement system to provide a framework of accountability. This performance measurement system is a key component of the governor's plan to create a smarter, more cost‐effective state government. Under current statute, agencies are required to turn in strategic five‐year plans every other year. While agencies comply with this provision, no oversight has been performed in the past to determine whether the strategic plans support the core mission of each agency. The Office of State Finance (OSF) will update the criteria for agency strategic plans and will help provide tools for each agency to ensure that planning and programming are backed up by data and successful outcomes. Additionally, under the current budget system, agencies are required to submit performance information with their request. However, the system lacks the ability to link performance directly to resource allocation. The governor's budget includes obtaining a software system that incorporates the following: Processes used to manage organizational performance, such as strategy formulation, budgeting and forecasting; The methodologies that support these processes, including strategic planning and management; and, The metrics used to measure performance against strategic and operational performance goals. The ideal system includes a robust measurement process that directly links performance to resources, allowing decision makers to have access to the information they need to utilize funds and workforce where they will be most effective. As outlined in the consolidation report, "Government Modernization: HB 2140, Consolidating the State of Oklahoma's Administrative Functions," an efficiency team within OSF is being developed to evaluate state agencies and service areas to determine the need and/or potential for increasing efficiencies. The agencies will then utilize the performance measurement resources described above to develop a timely and responsive assessment process allowing for continual improvement. This process will also allow the state to more readily identify agencies that may require more intensive audits to be performed by the state auditor. The Auditor's Office can also play a role to ensure the measures are serving their intended purposes and are calculated appropriately. At a proposed funding level of $3.5 million, this plan will create a transparent performance environment so the public can evaluate their government on the efficiency of its administration, the effectiveness of its programs, and the appropriate use of funds provided. Through this process, the state will maximize the use of its resources while eliminating unnecessary and burdensome practices. The government modernization consolidation report can be found at www.ok.gov/osf A‐3 FY‐2013 Executive Budget Energy Energy Efficiency and Conservation Oklahoma has long been a leader in energy production. Unfortunately, we are also ranked as one of the least energy‐efficient states in the nation. In fact, according to a recent report from the American Council for an Energy Efficient Economy, Oklahoma is the fourth worst state. Not only are we squandering our natural resources, but we are costing taxpayers millions of dollars in the process. This legislative session, Governor Fallin is asking the legislature to approve a measure that directs all state agencies and higher education institutions to achieve an energy efficiency and conservation improvement target of at least 20 percent by 2020. By applying Governor Fallin's comprehensive behavior‐based energy program, conservative projections show state facilities have the potential to reduce energy consumption by 20 percent–30 percent, representing net savings to taxpayers over 10 years of $300‐$500 million. These savings are real, they are significant and they can begin to be realized from the very first month of implementation. All costs of this program will be fully funded by the savings generated from the program, which are estimated to be over $10 million during the first year. This approach allows the program to be successfully implemented without increasing appropriations, requiring expensive mechanical upgrades or other retrofits of current state assets. Governor Fallin's plan covers all state buildings and higher education facilities — a total footprint exceeding 47 million square feet, ranging from buildings built in the 1800s to new construction. The state is following the example already set by Oklahoma State University. Since launching an aggressive and comprehensive behavior‐based energy program in 2007, OSU has reduced energy consumption across its campuses by 19 percent. This has resulted in quantifiable savings of nearly $19 million. But just as importantly, the energy program has changed the culture at OSU. From leadership and staff to the student body, OSU has created a culture of energy conservation that will benefit the school for generations to come. This proven model for behavior‐based energy conservation has also proven to be successful in school districts across the state for more than 20 years. Since 1989, 37 Oklahoma school districts, including Tulsa, Edmond, Jenks, Bristow, Hillsdale, Noble, Enid, Stillwater, Harrah, Sapulpa and Norman, have implemented similar behavior‐based energy programs and have achieved more than $68 million in savings. To learn more about Governor Fallin's Oklahoma First Energy Plan, please visit www.governor.ok.gov A‐4 FY‐2013 Executive Budget Health Healthy living is important, not just because we want Oklahomans to live full and happy lives, but because the effects of unhealthy life choices hurt our economy, drain taxpayer dollars and drive up the cost of health care for everyone. Oklahoma is currently ranked 48th in overall health indicators in the nation. The state has extremely high rates of obesity and smoking‐related illness, costing billions of dollars in health care expenses and lost productivity. The initiatives outlined below will lead to a healthier Oklahoma and help contain the growth of increasing health care costs currently straining the budgets of families, businesses and state government. Certified Healthy Businesses and Schools As the chief executive for the state of Oklahoma, the governor is committed to worksite wellness and her office has received certification through the Certified Healthy Business program. She has challenged her cabinet officials and all state agencies to become certified healthy businesses as well. The governor is equally concerned with the health and wellness of our children. The governor's budget includes $1.5 million in funding for the Certified Healthy Schools Reward Program. This program will provide financial rewards to each Oklahoma school that voluntarily achieves Certified Healthy School status by creating a healthy place for children to learn through increased physical activity and access to nutritious foods, providing wellness opportunities for school staff, referring children for needed physical and mental health services, and teaching children how to take responsibility for their health. The Certified Healthy Business and Certified Healthy Schools programs are part of a larger program that includes Certified Healthy Communities, Restaurants and Campuses. In 2011, about 490 Oklahoma businesses, schools, and communities received Healthy Oklahoma Certification and more than 1,000 have voluntarily been certified since the program began. Infant Mortality Program Governor Fallin's budget includes $1.7 million in funding to help deal with the high rate of infant death in Oklahoma. This funding will enhance the current statewide infant mortality initiative, by implementing targeted interventions through hospitals, key state and local agencies, and partner organizations to improve health outcomes for Oklahoma mothers and infants. Infant mortality can be improved in Oklahoma through simple, evidence‐based steps such as laying a baby on its back to sleep, encouraging women to breastfeed, teaching parents about normal infant crying in order to reduce abusive head trauma, and reducing smoking among pregnant women and family members. This program will utilize the existing health care and public health systems to give parents the tools they need to raise a healthy infant. Rural and Underserved Area Residency Program Sixty‐four of Oklahoma's 77 counties are experiencing health professional shortages. The United Health Foundation also ranks Oklahoma 49th in the country for the number of primary care physicians for its population. The lack of access to health care providers, especially primary care physicians, is a significant factor in Oklahoma's poor health outcomes. In an effort to reduce the shortage of health professionals in rural and underserved areas, the governor is supporting the expansion of rural residency programs in Oklahoma. Rural residency programs have been shown to help retain physicians where they are needed the most. The governor's budget proposal includes A‐5 FY‐2013 Executive Budget $3.08 million to establish 40 new residency slots at five hospitals. After three years, federal funding will become available to sustain this program. Mental Health / Smart on Crime Initiative The governor's budget continues to build on last year's initial investment of $3 million in the Oklahoma Department of Mental Health and Substance Abuse Services (ODMHSAS) Smart on Crime proposal which increased the number of women receiving addiction treatment to prevent incarceration and created 24/7 mental health emergency responders and services to assist law enforcement in Oklahoma County. This investment will continue to help preserve families, increase employment and reduce the state's high incarceration rate for women. Community Based Crisis Centers Law enforcement has been traveling further distances and at a greater frequency transporting persons with mental illness who are in need of crisis services. As an example of the scope of this issue, for one moderate size county alone, local law enforcement made nearly 450 trips during the past year, each a minimum of 50 miles one way, taking up at least 1,400 hours of officer time. The governor's budget includes $2.5 million for one additional crisis center. Community‐based crisis centers are the best practice in intensive short‐term treatment because they are close to local communities. Investing in these centers means these critically needed mental health services will be available locally allowing our citizens to receive treatment closer to home and keeping our officers on the street fighting violent crime as opposed driving hundreds of miles. For persons receiving treatment, it will reduce risks of suicide and involvement with the criminal justice system. Jail Screenings Currently, district attorneys, defense attorneys and the judiciary rarely receive objective information regarding the mental health and substance abuse needs and the level of risk of the person standing in front of them. This information would aid prosecutorial and defense decisions as well as help inform sentencing decisions. The ODMHSAS has proposed to develop jail screeners through its network of community providers across Oklahoma. These screeners will utilize evidenced‐based, objective tools for mental health and addiction screening and determine the risks and needs of each individual. The governor's budget includes $500,000 for this initiative. Systems of Care Grant About 10 percent of Oklahoma youth have a mental health disorder and an additional 10 percent have a substance abuse issue. Without early and effective identification and interventions, childhood disorders can lead to school failure, poor employment opportunities, poverty and criminal justice involvement in adulthood. The governor's budget includes $3,083,163 for the state match portion of the Systems of Care Grant. Systems of Care is a comprehensive spectrum of mental health and other services that are organized into coordinated networks to meet multiple needs. The program provides community based, family driven, youth‐guided, and culturally competent services statewide. These family centered programs have led to healthier Oklahoma families through significant reductions in self‐harm attempts (39 percent decline), reduced law enforcement contacts (47 percent decline) and reduced school detentions (53 percent decline). The Systems of Care program is the backbone of the children's treatment system and Oklahoma is the national leader in this evidence‐based approach to serving children and youth with mental illness and substance abuse disorders. This investment underscores the importance of serving these youth now to avoid more expensive consequences down the road. A‐6 FY‐2013 Executive Budget Health Funding Changes The Governor's budget holds agencies harmless for the loss of federal ARRA dollars by replacing the federal Recovery Act dollars that were used in FY‐2012 at the following levels: Health Care Authority: $70,866,174 Department of Human Services: $22,618,363 Department of Mental Health and Substance Abuse Services: $4,038,695 Department of Health: $605,711 J.D. McCarty Center: $381,128 Office of Juvenile Affairs: $271,612 These amounts are built into agency budgets. In response to that and the recently approved Medicaid Waiver that increased FY‐2012 funding by $30 million, the governor's budget includes a 1% decrease, or $9.8 million, to the Health Care Authority. Mental Health Fund Transfer The Governor proposes transferring policy setting and enactment responsibility as well as state matching dollars for behavioral health services from OHCA to ODMHSAS. ODMHSAS is the State's expert on behavioral and mental health. ODMHSAS has led the nation in transforming the behavioral health system for children in need through the development of Systems of Care (SOC) and is looked to by other States as an example of how to provide for the comprehensive needs of children with severe mental health needs. Other areas of national leadership include the development and use of tele‐psychiatry, Programs of Assertive Community Treatment (PACT), the treatment of co‐occurring mental health and substance abuse disorders, paying providers for performance and outcomes rather than a strictly fee‐for‐service (FFS) model, and doing more with less. ODMHSAS is quick to adapt to changing knowledge and data, keeping its system up to date by discontinuing the purchase of services which fail to have the desired outcomes and teaching, training, and growing providers in the services and tools which foster successful care and outcomes. If the ODMHSAS fully assumes the role of the state's behavioral health authority, then it will also strengthen the important partnerships the Department has developed with its network of private providers. Under the funding transfer, ODMHSAS will oversee the negotiations with CMS on Oklahoma State Plan Amendment and Waiver functions related to behavioral health, oversee service definitions and provider qualifications for all Medicaid and ODMHSAS funded services, set rates for services, determine medical necessity criteria, contract with providers, give technical assistance to service providers and authorize the payment of services for contractors of behavioral health services. This would include the transfer of an estimated $136 million state dollars/state match from the OHCA budget to the ODMHSAS budget for these behavioral health services. This system would enable maximum efficiency of resources, promote comparable outcome expectations from multiple behavioral health provider types and allow dollars to be braided and blended to create the best and most cost effective behavioral health system in the country. A‐7 FY‐2013 Executive Budget Transportation and Infrastructure Governor Fallin recognizes that having safe, modern and functional roads and bridges is vital to commerce and job creation. Businesses and individuals need a modern, safe transportation infrastructure servicing their needs. Unfortunately, the condition of Oklahoma's bridges have long been an impediment to economic growth. For years, Oklahoma has topped the national "bad bridges" lists. Currently, Oklahoma has 706 bridges on the state highway system that are identified as structurally deficient. Governor Fallin's Bridge Improvement and Turnpike Modernization Plan proposes to repair each one of those bridges while providing assistance to counties and modernizing the turnpikes outside of the state's largest two cities. Bridge Improvement and Turnpike Modernization Plan State Roads and Bridges Of Oklahoma's 706 structurally deficient bridges, 413 are scheduled for rehabilitation or replacement under the state's Eight Year Construction Plan. If no further action is taken, 293 structurally deficient bridges will not have the funding required for rehabilitation. Under Governor Fallin's plan, Oklahoma will repair the remaining 293 structurally deficient bridges and bring the total number of currently identified structurally deficient highway bridges down to zero by 2019. These improvements will place Oklahoma's highway bridge infrastructure system among the best in the nation. To accomplish this, Governor Fallin has included in her executive budget a financial commitment to add an additional $15 million to improve Oklahoma roads and bridges. These funds were originally intended to support road maintenance, but have been diverted in past years to other critical needs. The governor's intent is to restore the use of this motor vehicle revenue to its original purpose. The governor is also asking the legislature to raise the fiscal cap on the ROADS fund from $435 million to $550 million. Raising the incremental contribution and increasing the ROADS fund cap generates an estimated $479 million over an eight year time period; giving the Oklahoma Department of Transportation (ODOT) the resources it needs to virtually eliminate structurally deficient bridges on the state highway system. County Roads and Bridges The county road system in Oklahoma is extensive, and proper care and maintenance of this important transportation linkage has placed a fiscal burden on our counties during challenging economic time. That is why the governor is also proposing that the state inject extra resources and energy into the county‐level efforts to improve locally maintained bridges. For starters, ODOT predicts that the disassembling of the current I‐40 Crosstown Bridge in Oklahoma City will leave Oklahoma with 1,500 to 1,800 50‐foot steel beams in good condition that can be safely reused at the county level. ODOT predicts these beams can aid in the construction of around 300 new county bridges. All proposed bridge projects using the cross‐town beams can be under contract or completed by December 2014. In addition, to ensure counties have the resources they need to continue these improvements, Governor Fallin is asking the legislature to increase funding for the County Improvement for Roads and Bridges (CIRB) fund by shifting the percentage of revenue from motor vehicle collections that are dedicated to improving roads and bridges from 15 percent to 20 percent. By doing this, an additional $20 million will be generated a year for local road and bridge improvement; an investment that is sorely needed. A‐8 FY‐2013 Executive Budget Creek and Kilpatrick Turnpikes Finally, Governor Fallin's recognizes the increased congestion on two of Oklahoma's most widely traveled roads: the Kilpatrick Turnpike in Oklahoma City and the Creek Turnpike in Tulsa. At the current rate of traffic increases, both of these roads will be extremely congested by 2016, meaning longer commutes, less commerce and serious problems for two of our largest cities. That is why the Oklahoma Turnpike Authority is working to improve safety and capacity on these two roads, without raising tolls or taxes. Other Major Initiatives Capitol Capital Needs The state Capitol Building is currently in a state of disrepair. Facility fundamentals, such as mechanical, plumbing and electrical systems, building maintenance, and historical/architectural preservation have been largely ignored. The building systems are overtaxed and out of compliance with modern codes. In response, Governor Fallin's budget includes $5 million to cover the debt service associated with a bond issue of approximately $50 million to begin addressing these deficiencies. Emergency Fund The Emergency Fund exists to reimburse eligible entities for infrastructure damages caused by natural disasters. Currently there is a multi‐year backlog. The governor's budget not only eliminates the backlog by proposing a supplemental appropriation for FY‐2012 in the amount of $34.1 million, but allocates enough money to prepare for future emergency costs with an increased appropriation for FY‐2013 of $6 million. The burden placed on counties and cities as well as on state agencies, such as the National Guard, to assist Oklahomans when emergencies strike is not alleviated when there is no money to reimburse them for their costs. In Oklahoma, it is not a question of if we have these emergencies, but when. Office of the Chief Medical Examiner The Office of the Chief Medical Examiner (CME) is charged with protecting the public health and safety of Oklahomans through the scientific investigation of deaths as defined by state statutes. This process involves scene investigation and medicolegal autopsy complementing the activities of law enforcement agencies, district attorneys and public health officials. The Office is under the new leadership of Dr. Eric Pfiefer, and in just six months, they have nearly eliminated the old backlog of cases, implemented and updated vital policies and procedures, enacted cost containing measures and adopted national standards and best practices. However, the agency is still in critical need of personnel, equipment and infrastructure improvement. The Chief Medical Examiner's office lost national accreditation in 2009. Under Dr. Pfiefer, the office has made tremendous strides and with the proper support, the CME can achieve national accreditation once again. In addition to the $1 million supplemental highlighted below, the governor has included a $2 million increase for FY‐2013 in order to put the agency on the path towards re‐accreditation. A‐9 FY‐2013 Executive Budget Highway Patrol Academy Over the last several years, the Oklahoma Highway Patrol has experienced a considerable decline in the number of Troopers. There are distinctive circumstances that have contributed greatly to this reduction. Foremost, there has not been a funded patrol academy since 2009. Without another academy, the number of Troopers will become increasingly insufficient to fulfill the duties with which the OHP is charged. Further, 210 members of the Patrol are currently eligible to retire, with another 26 Troopers becoming eligible in June of 2012. These 236 Troopers represent 31% of the total Patrol workforce. The current strength of 759 as of 01/31/2012 is already a low water mark that could potentially affect the Patrol's ability to protect the citizens of and visitors to the state of Oklahoma. The OHP has responsibility for the entire state of Oklahoma including 98,424 miles of roads and highways, Bomb Squad responses / incidents (343 in 2011), Marine Enforcement's responsibility for thirty eight (38) lakes that are equivalent to 4,385 miles of shoreline, and the Capitol Patrol's responsibility to maintain security for the State Capitol and the capitol complex in Oklahoma City and Tulsa. To help increase trooper levels so that DPS can fulfill these responsibilities, the Governor's budget includes a $6 million supplemental to fund a 45 person academy as an immediate step to alleviating this public safety crisis. Strategic Military Planning Commission Oklahomans have a profound respect for the service of our military men and women, but we also realize and appreciate the significant economic impact of our five military installations. They are the economic engines that provide good‐paying jobs for almost 70,000 Oklahomans and have helped bring millions of dollars in private‐sector investment and research to Oklahoma. As the Obama administration continues with proposals to cut our national defense, including proposing two more rounds of BRAC, we must prepare ourselves to preserve the five military installations in Oklahoma. The strategic military planning commission was established to advise the governor on policies to help prevent Oklahoma's military facilities from being targeted for closing or downsizing, as well as maximizing Oklahoma's input into the federal base closing and realignment process. The governor's budget includes an increase in funds of $1 million for the military Planning Commission through the Department of Commerce to demonstrate our commitment that we will do what is necessary to protect these installations, working with our Congressional Delegation. Oklahoma is one of the few states that has never lost a major installation. Quick Action Closing Fund The Quick Action Closing Fund is an important job creation tool that will help to bring new businesses to Oklahoma and retain the ones currently operating in the state. The governor's budget proposes $5 million of seed capital to begin the effective use of the fund. A‐10 FY‐2013 Executive Budget Defending Oklahoma Water Rights Governor Fallin's budget proposes an additional $5 million be allocated to the attorney general's office in the event that the state is required to defend itself against tribal governments in a lawsuit regarding water rights. As the governor has said, she prefers the issue of water rights to be settled out of court through good faith negotiations involving all parties. In the event that the tribes have no interest in pursuing such negotiations, however, additional funding to the office of the attorney general is required to adequately defend the water rights of the state and the people of Oklahoma. Savings from HB 2140 Consolidation The newly proposed Office of Enterprise and Management Services (OEMS) includes the budgets of the four agencies that were consolidated (Department of Central Services, Office of Personnel Management, Oklahoma State and Education Employees Group Insurance Board, and the Employee Benefits Council) into the Office of State Finance. As such, Governor Fallin's budget proposes that the estimated $4.2 million of savings outlined in the HB 2140 Report remain with the consolidated agency to support further efforts to streamline government. FY‐2012 Supplementals Governor Fallin's budget includes supplemental appropriations for the following agencies: State Department of Education ‐ $37.6 million for the certified and support staff Flexible Benefit Allowance; State Emergency Fund ‐ $34.1 million to address the backlog of reimbursements for emergencies; Department of Public Safety ‐ $6 million to fund a highway patrol trooper academy; and Office of the Chief Medical Examiner ‐ $1 million to begin addressing the need for national accreditation, qualified personnel and adequate infrastructure issues. Revenue Proposals Transfer of Funds One component of the FY‐2013 budget is the following transfer of funds to the Special Cash Fund for appropriation to critical government services: $116 million from the Cash Flow Reserve Fund $10 million from the Unclaimed Property Fund $1 million from the Secretary of State Revolving Fund $3 million from the Insurance Commissioner Revolving Fund A‐11 FY‐2013 Executive Budget Increased Authority for 1017 Fund Based on growth trends, Governor Fallin's budget proposes to increase the authority to the Education Reform Revolving Fund by $20 million. This fund provides a dedicated stream of dollars to support Oklahoma school district operations. Oklahoma Health Care Authority The Centers for Medicare & Medicaid Services (CMS) recently approved Oklahoma's Medicaid Waiver, which was authorized by HB 1381, the SHOPP Act. In accordance with this legislation the governor's budget includes $30 million for the Oklahoma Health Care Authority. Increased Compliance Efforts In an effort to increase compliance with tax law, support local governments, and align with the intent of Senate Bills 216 and 750, Governor Fallin proposes to give the Tax Commission authority to accelerate compliance efforts. The FY‐2013 budget includes $13.9 million in additional revenue from this effort to collect delinquent sales and use taxes. Transition to a Two‐Year Registration System for Non‐commercial Vehicles The governor proposes a bi‐annual registration system for non‐commercial vehicles. A two‐year transition period would provide for registrants of odd model year vehicles to obtain a two‐year registration in the first year of implementation. Registrants of even model year vehicles would obtain their two‐year registration in the second year of implementation. First time registration of vehicles would require a two‐year registration. The FY‐2013 budget includes $104.9 million in revenue from this proposal. This simplification initiative will reduce administrative costs for the Tax Commission by approximately $500,000 after the first year of implementation, and will be a convenience to the taxpayers of Oklahoma, as well as tag agencies state wide, by reducing required transactions. A‐12 Summary of FY-2013 Balanced Budget FY'12 FY'13 Final FY'13 FY'13 $ From FY'13 % Appropriation Adjustments Budget Book Original FY'12 Orig. FY'12 Governor $1,980,594 $0 $1,980,594 $0 0.0% TOTAL GOVERNOR $1,980,594 $0 $1,980,594 $0 0.0% Lt. Governor $506,591 $0 $506,591 $0 0.0% TOTAL LT. GOVERNOR $506,591 $0 $506,591 $0 0.0% Agriculture, Department of $25,610,247 $0 $25,610,247 $0 0.0% Conservation Commission $9,561,684 $0 $9,561,684 $0 0.0% TOTAL AGRICULTURE $35,171,931 $0 $35,171,931 $0 0.0% Commerce, Department of $29,073,212 $1,000,000 $30,073,212 $1,000,000 3.4% REAP $11,532,469 $0 $11,532,469 $0 0.0% Historical Society $12,502,546 $0 $12,502,546 $0 0.0% J.M. Davis Memorial Commission $306,009 $0 $306,009 $0 0.0% Labor, Department of $3,081,160 $0 $3,081,160 $0 0.0% Oklahoma Scenic Rivers Comm. $271,315 $0 $271,315 $0 0.0% Tourism and Recreation, Depart. $21,803,003 $0 $21,803,003 $0 0.0% Will Rogers Memorial Comm. $740,486 $0 $740,486 $0 0.0% TOTAL COMMERCE & TOURISM $79,310,200 $1,000,000 $80,310,200 $1,000,000 1.3% Arts Council $4,010,087 $0 $4,010,087 $0 0.0% Career Technology Education, $133,742,618 $0 $133,742,618 $0 0.0% Education, State Department of $2,278,158,382 $0 $2,278,158,382 $0 0.0% Educational Television Authority $3,822,328 $0 $3,822,328 $0 0.0% Higher Education, Regents for $945,260,278 $0 $945,260,278 $0 0.0% Libraries, Department of $5,898,633 $0 $5,898,633 $0 0.0% Science and Math, School of $6,332,274 $0 $6,332,274 $0 0.0% Teacher Preparation, Comm. $1,526,180 $0 $1,526,180 $0 0.0% TOTAL EDUCATION $3,378,750,780 $0 $3,378,750,780 $0 0.0% A-13 Summary of FY-2013 Balanced Budget Corporation Commission $11,324,427 $0 $11,324,427 $0 0.0% Mines, Department of $779,139 $0 $779,139 $0 0.0% TOTAL ENERGY $12,103,566 $0 $12,103,566 $0 0.0% Environmental Quality, Department $7,557,973 $0 $7,557,973 $0 0.0% Water Resources Board $5,499,671 $0 $5,499,671 $0 0.0% TOTAL ENVIRONMENT $13,057,644 $0 $13,057,644 $0 0.0% Auditor and Inspector $4,706,986 $0 $4,706,986 $0 0.0% Bond Advisor $143,112 $0 $143,112 $0 0.0% Consumer Credit, Department $331,730 $0 $331,730 $0 0.0% Finance, Office of State $19,179,440 $3,500,000 $22,679,440 $3,500,000 18.2% Insurance Commissioner $1,871,938 $0 $1,871,938 $0 0.0% Land Office, Commissioners of $7,109,000 $0 $7,109,000 $0 0.0% Tax Commission $46,915,944 $0 $46,915,944 $0 0.0% Treasurer $3,629,872 $0 $3,629,872 $0 0.0% TOTAL FINANCE AND REVENUE $83,888,022 $3,500,000 $87,388,022 $3,500,000 4.2% Health, Department of $60,083,682 $3,200,000 $63,283,682 $3,200,000 5.3% Health Care Authority $983,085,563 -$146,717,060 $836,368,503 -$146,717,060 -14.9% Mental Health & Substance Abuse $187,151,517 $142,969,367 $330,120,884 $142,969,367 76.4% TOTAL HEALTH $1,230,320,762 -$547,693 $1,229,773,069 -$547,693 0.0% Central Services, Department of $17,313,301 $5,000,000 $22,313,301 $5,000,000 28.9% Horse Racing Commission $2,072,167 $0 $2,072,167 $0 0.0% Human Rights Commission $531,270 $0 $531,270 $0 0.0% Merit Protection Commission $490,967 $0 $490,967 $0 0.0% Personnel Management $3,639,606 $0 $3,639,606 $0 0.0% TOTAL HUMAN RESOURCES AND ADMINISTRATION $24,047,311 $5,000,000 $29,047,311 $5,000,000 20.8% A-14 Summary of FY-2013 Balanced Budget Children and Youth, Commission $2,027,167 $0 $2,027,167 $0 0.0% Disability Concerns, Office of $317,607 $0 $317,607 $0 0.0% Human Services, Department of $537,136,664 $0 $537,136,664 $0 0.0% Indian Affairs, Commission of $192,307 $0 $192,307 $0 0.0% J.D. McCarty Center $3,740,338 $0 $3,740,338 $0 0.0% Juvenile Affairs $96,187,205 $0 $96,187,205 $0 0.0% Physician Manpower Training $4,379,254 $3,080,000 $7,459,254 $3,080,000 70.3% Rehabilitation Services, Depart. $30,149,232 $0 $30,149,232 $0 0.0% University Hospitals Authority $38,446,391 $0 $38,446,391 $0 0.0% TOTAL HUMAN SERVICES $712,576,165 $3,080,000 $715,656,165 $3,080,000 0.4% Military, Department of $10,247,996 $0 $10,247,996 $0 0.0% TOTAL MILITARY $10,247,996 $0 $10,247,996 $0 0.0% ABLE $3,140,334 $0 $3,140,334 $0 0.0% Attorney General $13,228,141 $5,000,000 $18,228,141 $5,000,000 37.8% Corrections, Department of $459,831,068 $0 $459,831,068 $0 0.0% District Attorneys and DAC $32,887,257 $0 $32,887,257 $0 0.0% Emergency Management $651,180 $6,000,000 $6,651,180 $6,000,000 921.4% Fire Marshal $1,796,764 $0 $1,796,764 $0 0.0% Indigent Defense System $14,699,353 $0 $14,699,353 $0 0.0% Investigation, State Bureau of $13,848,059 $0 $13,848,059 $0 0.0% CLEET $3,682,560 $0 $3,682,560 $0 0.0% Medicolegal Investigations $4,698,280 $2,000,000 $6,698,280 $2,000,000 42.6% OBNDD $3,616,418 $0 $3,616,418 $0 0.0% Pardon and Parole Board $2,217,454 $0 $2,217,454 $0 0.0% Public Safety, Department of $84,894,790 $0 $84,894,790 $0 0.0% TOTAL SAFETY AND SECURITY $639,191,658 $13,000,000 $652,191,658 $13,000,000 2.0% Science & Technology, Center for $17,811,450 $0 $17,811,450 $0 0.0% TOTAL SCIENCE AND TECHNOLOGY $17,811,450 $0 $17,811,450 $0 0.0% A-15 Summary of FY-2013 Balanced Budget Election Board $7,805,808 $0 $7,805,808 $0 0.0% Ethics Commission $523,129 $0 $523,129 $0 0.0% Judicial Complaints, Council on $75,000 $0 $75,000 $0 0.0% Secretary of State $0 $0 $0 $0 TOTAL SECRETARY OF STATE $8,403,937 $0 $8,403,937 $0 0.0% Space Industry Development Auth. $394,589 $0 $394,589 $0 0.0% Transportation, Department of $106,737,039 $99,668,663 $206,405,702 $99,668,663 93.4% TOTAL TRANSPORTATION $107,131,628 $99,668,663 $206,800,291 $99,668,663 93.0% Veterans Affairs, Department of $34,698,752 $0 $34,698,752 $0 0.0% TOTAL VETERANS AFFAIRS $34,698,752 $0 $34,698,752 $0 0.0% House of Representatives $14,574,682 $0 $14,574,682 $0 0.0% Legislative Service Bureau $4,892,835 $0 $4,892,835 $0 0.0% Senate $11,171,789 $0 $11,171,789 $0 0.0% TOTAL LEGISLATURE $30,639,306 $0 $30,639,306 $0 0.0% Court of Criminal Appeals $3,334,631 $0 $3,334,631 $0 0.0% District Courts $59,600,000 $0 $59,600,000 $0 0.0% Supreme Court $17,300,000 $0 $17,300,000 $0 0.0% Workers' Compensation Court $4,197,166 $50,000 $4,247,166 $50,000 1.2% TOTAL JUDICIARY $84,431,797 $50,000 $84,481,797 $50,000 0.1% Total Appropriation $6,504,270,090 $124,750,970 $6,629,021,060 $124,750,970 1.9% A-16 Summary of FY-2013 Balanced Budget FY'12 Certified Revenues $6,531,999,625 Increased CLO Funds -$11,753,881 Cash Flow Reserve to Special Cash $116,000,000 Unclaimed Property to Special Cash $10,000,000 Increase 1017 Fund $20,000,000 Secretary of State to Special Cash $1,000,000 Insurance Department to Special Cash $3,000,000 Provider Fee increase to OHCA $30,000,000 Increased Compliance Enforcement $13,962,870 Transition to a two year registration system for non-commercial vehicles $104,900,000 Energy Efficiency Initiative $10,076,700 Tax Reduction and Simplification Act -$103,512,086 OTRS and Ad Valorem hold harmless -$7,900,000 State Department of Education Flexible Benefit Allowance Supplemental -$37,600,000 Emergency Fund Supplemental -$34,145,706 Department of Public Safety Supplemental -$6,000,000 Medical Examiners Supplemental -$1,000,000 OSU Medical Authority Contract -$5,000,000 Closing Fund -$5,000,000 Total Revenue $6,717,773,228 Total Expenditures $6,717,766,766 Total Difference $6,462 A-17 Summary of FY-2013 Balanced Budget FY-2013 Budget by Cabinet COMMERCE AND TOURISM AGRICULTURE Other 1% 1% JUDICIARY 2% FINANCE AND REVENUE 1% 1% TRANSPORTATION 3% SAFETY AND SECURITY 10% HUMAN SERVICES 11% EDUCATION 51% HEALTH 19% A-18 State Agency Information FY-2013 Executive Budget Alcoholic Beverage Laws compliance in 2012 with a 93.6% compliance rate. Enforcement Commission (ABLE) Safety and Security Cabinet Goals for Upcoming Year • The ABLE Commission continues to regulate and Historical Budget and FTE enforce Oklahoma's liquor laws with public $6,000 (in $000's) 80.0 safety first and foremost; $5,000 70.0 • Through developing financial support from the $4,000 60.0 50.0 Federal Drug Administration (FDA), ABLE will $3,000 40.0 continue to foster Oklahoma's tobacco $2,000 30.0 compliance issues. 20.0 $1,000 10.0 $0 FY-2008 FY-2009 FY-2010 FY-2011 FY-2012 0.0 Major Agency Projects Appropriation Total Budget $3,925 $4,335 $3,925 $4,331 $3,631 $4,201 $3,377 $5,000 $3,140 $4,633 • Tobacco contract to reduce teenage use of FTE 44.4 43.7 43.8 42.4 42.5 tobacco through contract with the FDA; • Justice Assistance Grant (JAG) contract to provide internet access for police and the public to information about liquor law violations; Mission • 2 Much 2 Lose (2M2L) contract through the To protect the public's welfare and interest through Department of Mental Health and Substance the enforcement of the laws and regulations Abuse Services - Agency personnel will work in pertaining to alcoholic beverages, charity gaming concert with local police and enforcement and youth access to tobacco products. officials to enforce underage drinking laws; and • The ABLE Commission will host the National Programs Conference of State Liquor Administrators • Alcohol Education (NCSLA) regional conference in Oklahoma City • Enforcement this fall with an opportunity to network with liquor administrators and industry members • Motor Vehicle Operations from across the United States and discuss • Business Office common issues, problems and possible • Payment to Cities solutions. For more information about the ABLE Commission, visit their website. Savings, Efficiencies and Shared Services in FY-2012 FY-2012 Budget by Program • ABLE left the Deputy Director's position vacant 3% and restructured the agency to reflect the 16% savings. The agency also left two enforcement 28% 1% Administrative Services positions vacant that occurred during FY-2012. Alcohol Education The reduction was approximately $250,000 Enforcement Motor Vehicle Operations from the FY-2011 budget. Business Office 2% Payment to Cities 50% Accomplishments over Past Year • Achieved the highest rate of tobacco compliance checks since 1994; • Through cooperation with many health organizations and The Tobacco Settlement Endowment Trust organization, helped ensure Oklahoma enjoyed its highest level of B-1 FY-2013 Executive Budget Aeronautics Commission (OAC) aerospace companies and the companies hiring them; Transportation Cabinet o Actively opposed the federal Freedom from Government Competition Act; Historical Budget and FTE o Played key role in reaching a compromise (in $000's) with Senator Coburn to avoid another FAA $12,000 14.0 partial shutdown; $10,000 12.0 10.0 o Stressed importance of agencies working $8,000 $6,000 8.0 together to meet workforce needs of the $4,000 6.0 4.0 aerospace industry; and $2,000 2.0 o Worked with the state's congressional $0 FY-2008 FY-2009 FY-2010 FY-2011 FY-2012 0.0 delegation to pass FAA Reauthorization. Total Budget $9,208 $10,413 $7,499 $9,320 $5,715 • Implemented the Aircraft Pilot and Passenger FTE 11.2 11.6 11.6 10.2 9.8 Protection Act, which protects Oklahoma's *Aeronautics Commission is a non-appropriated agency. public-use airports, including military airports, from encroaching incompatible development Mission and tall structures; The mission of the Oklahoma Aeronautics • Through the assistance of the Center for Commission (OAC) is to foster the growth of the Aerospace Supplier Quality (CASQ), Oklahoma state's aerospace industry and ensure the needs of companies obtained 60 more contracts with the commerce and communities are met by the 113 U.S. Department of Defense (DOD) and prime public airports that comprise the Oklahoma Airport contractors (e.g., Boeing). The value of these System. contracts was $19 million. Since the inception of CASQ in the last half of 2007, its efforts have Programs resulted in 304 DOD or prime contractor • Airport Assistance contracts totaling $36 million, being awarded to o Center for Aerospace Supplier Quality 28 Oklahoma aviation and aerospace (CASQ) businesses. • Successful administration and closure for the For more information about the Aeronautics Oklahoma Department Of Commerce of Phase I Commission, visit their website. of the federal Department Of Labor workforce grant for aerospace training; and FY-2012 Budget by Program • Provided $150,000 in grants and contracts for aviation education. 31% Goals for Upcoming Year General Operations • Expand services provided to Oklahoma Airport Assistance companies by CASQ; 69% • Continue to work with Oklahoma's congressional delegation to get a long-term FAA Reauthorization bill passed; and • Implement an effective Aviation Education Program. Accomplishments over Past Year • Implementing an efficient aviation Major Agency Projects infrastructure; A total of 56 airport improvement projects are • Communicating with stakeholders; expected to receive state and federal grant funds in • Providing a knowledgeable and competent staff; FY-2012. The major projects include: • Being a leading advocate for aviation and • Shawnee Regional Airport - Runway aerospace by taking the following actions: rehabilitation, approximate cost $3.5 million; o Played an important role in the restoration • Stillwater Regional Airport – Reconfigure main of the tax credits for engineers hired by apron, approximate cost $ 4 million; B-2 FY-2013 Executive Budget • Sand Springs (William R. Pogue Airport) – approximately 141,000 square yards of Rehabilitate runway, estimated cost $3.5 pavement that would otherwise have required million; more than $3.5 million in reconstruction. The • Tulsa (R.L. Jones Jr. Airport) – Upgrade electrical Commission's proactive efforts therefore saved systems, approximate cost $ 1.8 million; and about $2.5 million. In addition, the widen runway 13/31 at an approximate cost of Commission's statewide pavement management $ 1.9 million; program saves the state at least $300,000 per • Muskogee (Davis Field) – Rehabilitate taxiway, year. approximate cost $2.5 million; • Guthrie-Edmond Regional Airport – Install NAVAIDS, hangar development, approximate cost - $1.5 million; • Oklahoma City (Clarence E. Page Airport) – Rehabilitate runway and install taxiway lights, approximate cost $2 million; • Goldsby (David Jay Perry Airport) – Taxiway construction, approximate cost $ 1.7 million; • Idabel (McCurtain County) – Construct and rehabilitate taxilanes, approximate cost $3.8 million; • Miami Municipal Airport - Rehabilitate runway, approximate cost $2.4 million; • Pauls Valley Municipal – Construct taxiway, approximate cost $2.7 million; • Kingfisher Municipal Airport – Construct runway pavement, approximate cost $900,000; • Enid Woodring Regional – Reconstruct taxilanes, approximate cost $600,000; and • Routine airport pavement maintenance and system planning, approximate cost $2.3 million. Savings, Efficiencies and Shared Services in FY-2012 • Under the OAC Travel Policy (which also applies to commissioners), upon approval of a travel request, a discount, non-refundable airfare ticket will be purchased. Also, unless an official conference hotel is designated, the use of Hotwire Hot Rates and/or Priceline "Name Your Own Price" is required. If two or more staff are traveling sharing a room is presumed. Strong consideration is given to traveling by motor vehicle. This has resulted in documented savings of more than $10,000. • As part of its statewide airport pavement maintenance efforts, the Commission employs innovative pavement preservation techniques to maintain Oklahoma's airports in a safe, serviceable condition. The most recent projects included maintenance at Ardmore Municipal Airport and Enid Woodring Regional Airport. The Commission spent about $900,000 to maintain B-3 FY-2013 Executive Budget Agriculture, Department of o State Lands Management o Forest Regeneration (ODAFF) o Conservation of Forested Lands Agriculture Cabinet o Urban Forestry o Forestry Education Historical Budget and FTE • Animal Industry Services (in $000's) o Aquaculture $80,000 500.0 $70,000 o Cattle $60,000 400.0 o Equine $50,000 o Feral Swine 300.0 $40,000 o Swine $30,000 200.0 o Poultry $20,000 o Import/Export 100.0 $10,000 • Plant Industry & Consumer Services $0 FY-2008 FY-2009 FY-2010 FY-2011 FY-2012 0.0 • Wildlife Services Appropriation Total Budget $33,678 $69,313 $34,540 $69,668 $30,641 $64,071 $26,307 $63,152 $25,610 $52,320 • Food Safety FTE 456.1 450.1 430.1 426.4 412.0 o Dairy Section o Meat & Poultry Inspection o Meat Inspection Compliance Mission o Organic Food Section The Oklahoma Department of Agriculture, Food and o Poultry & Egg Section Forestry's (ODAFF) mission is to look at agriculture • Agricultural Laboratory Services with a vision of what it will be in the next 100 years. • Market Development Services ODAFF is responsible for increasing the value of o Farm to School agriculture products and enhancing the value of life o Plasticulture in Oklahoma rural communities. In addition, ODAFF provides development of the state's food and fiber For more information about ODAFF, visit their resources in a manner that will always protect website. consumer health and safety, natural resources, property and the environment. FY-2012 Budget by Program Programs Administration • Legal Services Legal • Agriculture Environmental Management Services: 9% Ag Environmental Mgmt. o CAFO – Concentrated Animal Feeding 3% 7% 22% Statistical Reporting Operations 1% Forestry o Poultry Waste Applicators 3% 9% o Poultry Litter Transfer 0% Animal Industry o RPFO- Registered Poultry Feeding 9% Market Development Operations Plant Industry & 33% o Swine Feeding Operations Consumer Srvcs 4% Wildlife • Statistical Reporting Services • Investigative Services Unit Food Safety • Forestry Services Ag Laboratory o Wildfires o Rural Fire Defense o Operational Grants o 80/20 Grants Accomplishments over Past Year o Forest Stewardship • ODAFF worked with the legislature to get Senate o Forest Inventory Bill 420 passed and signed by the Governor o State Forest Resource Assessment and Strategy B-4 FY-2013 Executive Budget which assists in the import and export of Savings, Efficiencies and Shared Services in livestock from Oklahoma airports; FY-2012 • ODAFF worked with the Governor's office, the • Conversion to Alternative Fuel Vehicles to Oklahoma Department of Transportation, and reduce fuel costs; the Small Business Administration to put in • Reduction of FTE through normal attrition; place several drought assistance programs and • Lab Technology advancements to reduce costs; options due to the unprecedented drought of and 2011; • Reduction of mailings by using electronic media. • Development of an educational garden, at the ODAFF building, that generated over 150 pounds of produce; • Forestry Services provided 167 cases of assistance to fire departments outside the assigned initial fire response area; and • Rural Fire Defense provided over $7.4 million in Federal Excess property, $3.7 million in operational grants and $400,000 in cost share grants to rural fire departments to purchase new equipment. Goals for Upcoming Year • Protect producers and consumers by ensuring the safety and quality of agricultural products and services; • Protect and conserve Oklahoma's natural and agricultural resources while enhancing agricultural related production; • Diversify and expand the economic contribution of agriculture and enhance the viability of rural communities; • Assure that the public is informed and knowledgeable about agricultural and natural resource issues and opportunities; • Assure effective and efficient delivery of agricultural program services by a well-trained and motivated workforce; and • Continue to move forward with the exporting of livestock from Oklahoma airports. There is currently a livestock owner in the final preparation steps for live animal export and trade overseas. Major Agency Projects • Conversion to PeopleSoft Time and Labor; • Information Technology Consolidation with OSF per HB 1304; • Shared Services for Payroll; and • Online Licensing. B-5 FY-2013 Executive Budget Arts Council value of the arts by funding 560 projects from 311 organizations and schools; Education Cabinet • Organized and curated 22 rotating Capitol gallery exhibitions which provided access for Historical Budget and FTE (in $000's) Oklahomans and other visitors to experience $7,000 16.0 exceptional art by Oklahoma artists at no cost; 15.5 $6,000 15.0 • 311 schools utilized the Arts Council's Teaching $5,000 $4,000 14.5 14.0 with Capitol Art online curriculum materials; $3,000 13.5 designed for Oklahoma educators to teach 13.0 $2,000 12.5 Oklahoma history and visual arts through the $1,000 12.0 $- 11.5 Permanent Capitol Art Collection. FY-2008 FY-2009 FY-2010 FY-2011 FY-2012 Appropriation $5,151 $5,151 $4,764 $4,407 $4,010 • 173,361 students in 712 school sites were Total Budget $5,791 $6,000 $6,098 $5,356 $5,135 served through and the Arts Council's arts FTE 15.3 15.2 15.4 13.3 12.9 education grant programs; • 54,673 participants in 336 community sites were Mission served through the Arts Council's Arts Learning The mission of the Arts Council is to lead, cultivate in Community's grants, which support lifelong and support a thriving arts environment, which is learning, providing hands on instruction to essential to quality of life, education and economic participants at all stages of life, whatever their vitality for all Oklahomans. life circumstance; • Gang Prevention: The Oklahoma City Police Department's Gang Prevention Program has Programs partnered with the Arts Council to provide • Oklahoma Arts Conference positive alternatives for at-risk youth through • Governor's Arts Awards after-school arts programming at two inner-city • Leadership Arts community centers. • Oklahoma Regional Arts Network • Oklahoma's New and Emerging Arts Leaders Goals for Upcoming Year For more information about the Arts Council, visit • Three rural communities will receive their website. consultation and public policy development services to establish formal arts and cultural districts. These districts will use the arts as a FY-2012 Budget by Program catalyst to attract business, reduce storefront vacancy, increase sales tax revenue and improve 5% 8% aesthetics. 11% Administration • Promote the value of arts education's Art Education in Schools correlation to increased graduation rates, 13% Art Learning in Communities Community Arts Programs pursuit of higher education and development 63% Public Awareness and retention of Oklahoma's creative workforce. In addition, 25 additional online resources will be developed for Oklahoma educators utilizing the Teaching with Capitol Art curriculum. • Build and expand partnerships with business, Accomplishments over Past Year government and community leaders to • Convened over 325 people from 50 maximize expertise and additional resources for communities around the state for the Oklahoma arts related initiatives. Arts Conference in Tulsa; • Graduated 27 individuals from the Oklahoma Arts Council's Leadership Arts program for a Savings, Efficiencies and Shared Services in total of 118 graduates since 2008; FY-2012 • Served 3.3 million people through Arts Council The Oklahoma Arts Council's online e-Grant system, grant programs. These grants provided developed in-house, has streamlined the grant opportunities for Oklahomans to experience the application process and allows the Arts Council to save time as well as expenses associated with paper, B-6 FY-2013 Executive Budget storage, printing and mailing costs. In addition, the bulk of all publications are produced electronically to keep print and mailing costs at a minimum and adaptable to a changing media environment. Other steps to eliminate costs have included installing energy efficient LED lighting in the Capitol's Betty Price Gallery and partnering with the Department of Central Services to replace bulbs in two other Capitol galleries. Lighting changes will better preserve the state's artwork and save over 24,000 kWh and $2,000 annually. The Office of State Finance provides all of the Arts Council's IT needs through shared services. B-7 FY-2013 Executive Budget Attorney General, Office of the Accomplishments over Past Year • Successfully represented the state in numerous (OAG) litigation matters, and continues to represent Safety and Security Cabinet eighty-six state agencies through OAG's General Counsel Unit; Historical Budget and FTE • Public Protection Unit (in $000's) o Collected more than $100,000 for fraud $45,000 200.0 victims through restitution; o Received and processed 2,675 written $40,000 consumer complaints; $35,000 160.0 o Received and processed 7,115 consumer $30,000 calls; 120.0 $25,000 o Responded to 444 calls from businesses $20,000 with questions about the Attorney 80.0 $15,000 General's complaint process; and $10,000 o Recovered $66,862 for Oklahoma 40.0 consumers. $5,000 • Medicaid Fraud Control Unit recovered more $0 0.0 FY-2008 FY-2009 FY-2010 FY-2011 FY-2012 than $13.3 million; Appropriation $13,944 $14,782 $12,693 $12,705 $13,228 • The thirteenth Multi-County Grand Jury has thus Total Budget $35,738 $33,141 $42,613 $33,687 $33,401 FTE 174.5 171.4 156.9 133.8 153.6 far returned thirteen indictments involving fourteen defendants; • In the Workers' Compensation Fraud Unit, the Mission Attorney General charged forty defendants in It is the mission of the Office of Attorney General to 2011; and protect and defend the interests of Oklahomans and • OAG issued twenty-four Attorney General the state by acting with excellence as its chief legal Opinions. officer. Goals for Upcoming Year Programs • The Attorney General is seeking additional • Financial Fraud & Special Investigations; attorneys for the General Counsel and Litigation • Medicaid Fraud Control Unit; Units to increase OAG's ability to serve state • Workers' Compensation Fraud Unit; agencies; • Domestic Violence; and • OAG is also seeking to expand the Office of • Legal Services. Solicitor General, which is responsible for monitoring the actions of the federal For more information about OAG, visit their website. government and suing when intrusions are made upon the state's sovereignty; and FY-2012 Budget by Program • OAG continues to expand its efforts to fight 7% fraud committed against consumers, the 16% General Operations Medicaid system and workers' compensation 5% Financial Fraud & Spec Investigations through the hiring of additional investigators 33% Medicaid Fraud Control Unit and prosecutors. Workers' Comp Fraud Unit 11% Major Agency Projects Domestic Violence • Pursuant to SB 763 passed last year, the Office Legal Services has been tasked with consolidating the Human 7% 24% Pass Through Appropriations Rights Commission into the Office of Attorney General through the creation of the Office of Civil Rights. This transition must completed by July of 2012; B-8 FY-2013 Executive Budget • OAG is planning to transition its information technology platforms from Lotus Notes to Microsoft Exchange and utilize the District Attorneys Council case management system. The Office has received approval from the state Chief Information Officer to begin this process. Savings, Efficiencies and Shared Services in FY-2012 • OAG made a 21% reduction in professional services from FY-2010 to FY-2013. This includes costs associated with outside counsel, professional witnesses and consulting; • OAG uses the OSF Core system for payroll, financial accounting and human resources; and • OAG utilizes the DCS Fleet Management system. B-9 FY-2013 Executive Budget Auditor and Inspector (OSAI) FY-2012 Budget by Program Finance & Revenue Cabinet 3% 9% 12% Historical Budget and FTE Administration Local Govt Svc (in $000's) State Agency Svc $32,000 150.0 41% Special Svc $24,000 35% 100.0 Ancillary Svc $16,000 50.0 $8,000 $0 0.0 FY-2008 FY-2009 FY-2010 FY-2011 FY-2012 Appropriation $21,815 $21,815 $5,433 $5,153 $4,707 Total Budget $29,558 $29,543 $13,194 $13,306 $10,467 Accomplishments over Past Year FTE 135.2 123.3 117.3 116.0 119.8 • As requested by OSAI, Oklahoma Statutes, Title *Beginning in FY-10, REAP appropriations were no longer passed through OSAI. 19, Sections 171, 1402 and 1405 (SB 130 of the 2011 Legislative Session) were modified to Mission provide more flexibility and efficiencies for The mission of the State Auditor and Inspector County audit reports. As a result, OSAI released (OSAI) is to independently serve the citizens of more County audits in FY-2011 than in FY-2009 Oklahoma by promoting accountability and fiscal and FY-2010 combined. integrity in state and local government. The agency • As requested by OSAI, Oklahoma Statutes, Title accomplishes this by valuing professionalism in staff 74, Section 212B (HB 1207 of the 2011 and the completion of audit work in accordance with Legislative Session) requires reports relating to established professional standards. certain government entities, produced by independent public accountants or certified Programs public accountants, be electronically submitted • Local Government Services to OSAI. The law also provides the reports be o Management Services made available (on the website) for greater o County Audit Services transparency and accountability to the public o Investigative Services and the Legislature. The required reports are • State Agency Services now available. o Financial Audit Services • In order to accommodate the independent o Performance Audit Services accountants electronically filing the above o IT Support and Audits reports and paying the associated fee, OSAI has o Group Insurance Audit Services provided an optional on-line payment system. • Special Services • Fraud, waste, abuse and embezzlement of o Gaming public funds in Oklahoma governmental entities o Horse Racing totaled into the millions of dollars in recent o Minerals Management years. To help facilitate the reporting of o Quality Control and Audit Review suspected fraud by both citizens and o Training and Continuing Education government employees, OSAI has established a o Board of Equalization Support toll-free hotline. Callers may leave information, o Pension Commission Support anonymously if preferred, about suspected • Ancillary Services fraud occurring at any public entity. OSAI also o Commission on County Government re-designed the online reporting form to make it more user-friendly to help the public provide For more information about OSAI, visit their website. better, more critical information needed to clarify whether or not the elements of fraud may be present in a complaint. B-10 FY-2013 Executive Budget Goals for Upcoming Year • OSAI entered into an agreement with the Office • Enhance the Performance Audit Division of State Finance to perform payroll processing. The agency anticipates long-term future savings. A Performance Audit is a specific type of audit report • OSAI requested to be included in the CORE that reviews the effectiveness and efficiency of a Financials Projects module to expedite audit government entity. The audit may focus on internal invoicing. OSAI will eliminate redundant tasks controls to ensure reliable reporting and the and realize savings when given access to this existence of proper safeguards to protect public program. assets. The audit may review an entity's programs, procedures, and processes to ensure the most cost- effective delivery of public services. A Performance Audit may target a particular program created by the legislature to review its implementation to ensure the expenditure of designated funds are in compliance with contract provisions, the intent of the law and other statutory requirements. Currently, the State Auditor is authorized to conduct Performance Audits only upon written request by the Governor, the chief executive officer of a government entity, or by joint or concurrent resolution of the state legislature. Major Agency Projects • The Oklahoma State Auditor & Inspector shall "examine the state and all county treasurer's books, accounts, and cash on hand or in bank at least twice each year" and "prescribe a uniform system of bookkeeping for the use of all treasurers." [OK Constitution, Article 6 § 19]. • The constitution also requires the auditor to annually audit the operations of the state's Emergency Medical Service Districts. [OK Constitution, Article 10 § 9C]. State law mandates that the State Auditor establish accounting procedures and forms, and provide assistance to counties and other local governments. • The State Auditor conducts audits of almost all state agencies, boards and commissions, and also performs special investigative audits when requested by certain officials or citizen petition. Savings, Efficiencies and Shared Services in FY-2012 • In order to save on travel costs, OSAI employees are now using the State travel card for lodging costs. Future savings will be obtained by using the travel cards which are exempt from state and local taxes. B-11 FY-2013 Executive Budget Banking Department o Trust companies o Money order companies Finance and Revenue Cabinet o Money transmitter companies Banking Department Historical Budget and FTE For more information about the Oklahoma Banking (in $000s) Department, visit their website. $8,000 45.0 $7,000 40.0 35.0 $6,000 30.0 FY-2012 Budget by Program $5,000 25.0 $4,000 20.0 $3,000 15.0 $2,000 10.0 24% $1,000 5.0 Administration $0 0.0 FY-2008 FY-2009 FY-2010 FY-2011 FY-2012 Examinations Total Budget $5,034 $6,207 $6,178 $6,440 $6,859 FTE 38.4 38.8 39.6 40.8 42.3 76% *Banking Department is a non-appropriated agency Mission As authorized by statute, the State Banking Accomplishments over Past Year Department operates as an administrative The Banking Department's main goals were to regulatory agency under the executive branch of maintain a safe and sound financial industry and to government of the State of Oklahoma. The lower the assessment rate for state-chartered banks. Department is responsible for supervising commercial banks, credit unions, savings and loan Specific goals that were achieved include: associations, and trust companies. It also regulates and licenses money order companies and money • Finalizing the update of the Banking Department transmitter companies. The Department helps website; ensure the safety of depositors' funds through • Increasing the assets supervised under the appointed advisory boards that are charged with Oklahoma state banking system; and promulgating rules to govern the financial industry in • Lowering assessments on the industry in an the State. effort to stimulate community lending. The Department performs statutorily prescribed Goals for Upcoming Year examinations of all financial institutions under its The Department's goals for the upcoming year are: supervision through the allocation of its human and • To participate in the one-stop licensing program technological resources. It also convenes public offered to money transmitter licensees through hearings on matters of new charter applications and the National Mortgage Licensing System processes various administrative applications from (NMLS); regulated financial institutions that are seeking new • To continue to improve efficiencies for or additional corporate powers and activities and/or delivering services and supervising the banking changes in their certificates of incorporation. and money service business industries. The primary focus of the Department is effective and Major Agency Projects efficient supervision and preservation of the dual By partnering with the Office of State Finance, the banking system and the protection of financial Department plans to implement new technology to institution depositors and shareholders. enable improvements in communication and to better serve their clients. In addition, the Banking Programs Department will be reviewing the money transmitter • Examinations licensing and license renewal process and seeking to o Banks participate in the one-stop licensing program offered o Savings and loan associations by the NMLS, to the money transmitter licensees o Credit unions that are licensed in multiple jurisdictions. B-12 FY-2013 Executive Budget Savings, Efficiencies and Shared Services in FY-2012 Over the past year, the Banking Department has achieved efficiencies for itself, the industry it regulates and the citizens it serves through: • Updating the website that enables clients to easily obtain information and forms; • Reducing regulatory assessments imposed on the industry; • Increasing assets supervised under the state banking system; and • Decreasing operating costs through the installation of solar panels to power the Oklahoma City office. B-13 FY-2013 Executive Budget Boll Weevil Eradication Organization Accomplishments over Past Year Over the past year OBWEO has continued to (OBWEO) maintain a weevil free status across the state. As a Agriculture Cabinet result OBWEO was able to change the eradication status from suppressed to functionally eradicated. Historical Budget and FTE (in $000's) $1,600 20.0 Goals for Upcoming Year $1,400 OBWEO will continue to maintain a weevil free $1,200 15.0 status. This will allow the organization to continue $1,000 reducing expenses. $800 10.0 $600 Savings, Efficiencies and Shared Services in FY-2012 $400 5.0 $200 $0 0.0 OBWEO reduced actual expenses 10%, from FY-10 to FY-2008 FY-2009 FY-2010 FY-2011 FY-2012 Total Budget $1,377 $1,154 $1,104 $1,045 $1,009 FY-11. The agency projects a 3% reduction for FY-12. FTE 16.5 13.2 11.9 10.7 10.6 *OBWEO is a non-appropriated agency Mission The goal and purpose of the Oklahoma Boll Weevil Eradication Organization (OBWEO) is to design and implement boll weevil eradication and post- eradication programs that are economical, producer friendly and beneficial to all segments of the cotton industry in Oklahoma. Historical Funding by Source $3,750, 11% State Federal $9,014, 26% $21,588, 63% Revolving OBWEO received state appropriations (FY-1998 through FY-2002), and federal funding from USDA/APHIS (FY-1998 through FY-2010). The revolving fund amount of $21,588,000 is the total collected industry fee assessments to date, beginning in FY-1998. For more information about OBWEO, visit their website. B-14 FY-2013 Executive Budget Bond Advisor Goals for Upcoming Year Finance and Revenue Cabinet • Continue to monitor refunding opportunities to reduce the State's annual debt service requirements; Historical Budget and FTE • Amend the capital planning act to improve the (in $000's) process of identifying and funding essential $400 4.0 needs; $300 • Fill a vacant staff position to ensure efficient $200 2.0 operation of the Office; $100 • Assist State entities with their new-money $0 0.0 FY-2008 FY-2009 FY-2010 FY-2011 FY-2012 funding needs; and Appropriation Total Budget $186 $363 $186 $363 $160 $363 $156 $363 $143 $363 • Support the Council of Bond Oversight in their FTE 3.0 2.8 2.0 2.0 2.0 efforts to protect Oklahoma's reputation as a State that is responsible in its capital funding practices. Mission To staff the Council of Bond Oversight and provide support and assistance to State agencies, Major Agency Projects authorities, trusts and institutions of higher As noted above, the agency is looking to restructure education in the capital planning and formation the capital planning and funding process to help the process. Serve as liaison between the State and the State address a significant backlog of infrastructure rating agencies and credit enhancement providers to needs. In addition, the agency is seeking legislation ensure a coordinated effort to preserve and improve to amend the Bond Oversight and Reform Act to Oklahoma's access to the credit markets. Administer remove redundant language and clarify the the State's Private Activity Bond Allocation Act, responsibilities of the Council of Bond Oversight. provide staff support for the Long Range Capital Planning Commission, and serve as Chairman of the Savings, Efficiencies and Shared Services in Commission on School and County Funds FY-2012 Management. The Bond Advisor has achieved the following savings on bond issues: Programs • Oklahoma Turnpike Authority, Series 2011 For more information about the Oklahoma State $19,609,787.53 Bond Advisor, visit their website. • Master Real Property Lease (UCO), Series 2011A $900,605.57 Accomplishments over Past Year • Master Real Property Lease (UCO), Series 2011B The agency helped realize significant savings to $1,649,146.71 multiple State entities through the refunding of • Master Real Property Lease (OSUIT), Series outstanding bond obligations and assisted with 2011D $2,270,200.66 multiple new-money financings that were marketed • Master Real Property Lease (Connors), Series at very attractive interest rates. Recently, the 2011E $1,607,680.49 agency coordinated presentations to the three • Master Real Property Lease (USAO), Series national bond rating agencies that included the 2011F $2,480,996.84 participation of the Governor, Treasurer and • University of Oklahoma, Series 2011E Director of State Finance. The Office prepared a $1,993,187.76 Capital Improvements Plan that identified significant • University of Oklahoma, Series 2011F deferred maintenance needs that require funding – $204,034.18 either through appropriation of capital financing. • Tulsa Community College, Series 2012 (Closing Finally, the agency ensured that the Private Activity on January 25, 2012) $1,010,091.45 Bond Program was conducted in a manner consistent with State and federal law. B-15 FY-2013 Executive Budget Career & Technology Education, • 8,916 enrollments in cooperative alliance programs, a partnership with higher education, Oklahoma Department of resulting in 77,683 college credit hours for $8 (CareerTech) per credit hour; Education Cabinet • 14,450 Career Readiness Certifications were issued; • CareerTech administered eight dropout Historical Budget and FTE (in $000's) recovery programs, serving 480 females and 538 $200,000 400.0 $180,000 350.0 males. Of these 1,018 students, 808 enrolled to $160,000 $140,000 300.0 pursue a high school diploma and 30 enrolled to $120,000 250.0 $100,000 200.0 obtain a GED. $80,000 $60,000 150.0 100.0 • 75% of Oklahoma prisoners who were trained in $40,000 $20,000 50.0 skills center programs are still working 60 $- 0.0 FY-2008 FY-2009 FY-2010 FY-2011 FY-2012 months after release. Appropriation $154,864 $158,270 $146,218 $141,977 $133,743 Total Budget $190,016 $186,033 $177,864 $175,702 $177,996 FTE 338.0 330.5 309.1 287.6 276.5 Economic Development • CareerTech served 6,721 businesses; Mission • Training for Industry Programs (TIP) average wages were up from $14.89 to $16.14 per hour; CareerTech prepares Oklahomans to succeed in the workplace, in education and in life. • New jobs filled through TIP training generated more than an estimated $5 million in state taxes. Programs • Business/Industry/Adult Education • Local School Support Goals for Upcoming Year • Continue to accelerate Oklahoma's economic • Dropout Recovery/Youthful Offenders growth; For more information about CareerTech, visit their • Ensure implementation of consistent standards website. and accountabilities; • Strategically improve agency operation and effectively manage resources to lead to the FY-2012 Budget by Program CareerTech System; • Create and promote a systemic culture that 4% 3% 5% Business/Industry/Adult values diversity and inclusion. Education 13% Local School Support Major Agency Projects Statewide Services • Statewide training initiative to fast track certification for returning military Dropout Recovery / Youthful Offenders members/Veterans. Veterans return with 75% Administration / Data countless hours of experience in areas (for Processing example: driving semi-trucks, working in emergency medical facilities, welding specialty), yet they don't have the industry standard Accomplishments over Past Year credentials required to become employed Workforce Development & Career Readiness immediately. CareerTech's goal is to get them • 93.6% positive placement rate for full-time job certified and ready in a fraction of the time technology center programs (employed, typically required. continued education and military); • The Center for Aerospace Supplier Quality • 95.5 % of high school seniors enrolled in (CASQ) is a partnership between the Oklahoma CareerTech programs graduated from high Aeronautics Commission (OAC) and CareerTech school; to provide expert guidance to Oklahoma companies selling aerospace-related supplies and services to U.S. defense agencies. B-16 FY-2013 Executive Budget • CareerTech's Oklahoma Bid Assistance Network cost for utilities, a reduction in the agency's (OBAN) provides technical assistance in annual leave liability, and minimal impact on government contracting to all companies CareerTech customers because the schools are identifying companies interested in targeting closed during this time. Estimated savings: defense aerospace. OBAN connects them with $351,672. industry experts through the CASQ program • The agency implemented the electronic time guiding them into a focused pursuit of new and leave system for all staff. This action business. allowed the agency to eliminate one full-time • Establishing multiple training sites for ongoing position in the agency's Human Resources maintenance needs for alternative energy Division, reduced the time required for the (wind, CNG, CNG vehicle conversions); submittal and approval of leave, and reduced • Disaster Recovery and EMS Training Simulator, the amount of paper used for documentation. built to meet the needs for emergency Estimated savings: $94,000. preparedness and health provider training • In cooperation with the University of Oklahoma, throughout Oklahoma. Developed in an E-book with an assessment test was partnership with Oklahoma Department of developed to be used for agency staff sexual Health and Kiamichi Technology Centers, the harassment training. This on-line training simulator will help meet the training needs eliminated the need to purchase materials or during a time when the state is experiencing a hire a trainer. Estimated savings: $2,250. shortage of healthcare workers. • Partnering with "Oklahoma Nanotechnology Education Initiative, (ONEI)," addressing challenges by developing career awareness, secondary education programs, and a two-year associate degree that will advance industries' use of microtechnology and nanotechnology. Savings, Efficiencies and Shared Services in FY-2012 • The agency utilizes the OSF CORE modules including requisitioning, purchasing, accounts payables, accounts receivables, general ledger, payroll, employee self service, enterprise learning management system, and time and labor. • In anticipation of additional funding reductions for Fiscal Year 2010-11 and Fiscal Year 2011-12, the agency implemented a voluntary and involuntary separation plan, resulting in total reduction of 31 employees. Initial savings were $2,997,753. Continuing savings: will be greater than $2 million per year. • As the agency experienced continuing funding reductions, staff was asked to save funds by reducing travel expenditures. By utilizing teleconference and video conference tools, travel expenditures were reduced significantly in the past two years. Savings: $323,165. • For the last two years, the agency has been closed for the period between Christmas and New Years. Staff was required to use personal annual leave for the days not provided as state holidays. This action has resulted in reduced B-17 FY-2013 Executive Budget Children and Youth, Commission on Accomplishments over Past Year OCCY implemented two important goals from the (OCCY) Oklahoma State Plan for Services to Children and Health & Human Services Cabinet Youth. The goals are to strengthen transition services to custody youth and create access to Historical Budget and FTE mental health services: in ($000's) • Developed a transitional living program for 30.0 $3,600 youth who are exiting from the state's care in $3,200 25.0 Jackson County, Payne County and at the $2,800 $2,400 20.0 Central Oklahoma Juvenile Center by partnering $2,000 with the Office of Juvenile Affairs, the 15.0 $1,600 Department of Rehabilitation Services and other $1,200 10.0 local agencies; and $800 5.0 • Facilitated the development of a Master's $400 $0 0.0 degree program for residents in the Oklahoma FY-2008 FY-2009 FY-2010 FY-2011 FY-2012 Appropriation $2,334 $2,608 $2,294 $2,157 $2,027 Panhandle to increase the number of licensed Total Budget $3,195 $3,450 $3,636 $3,495 $3,322 professional counselors. FTE 27.0 27.6 27.2 27.3 26.2 Goals for Upcoming Year Mission • Commissioners review and approval of the new To improve services to children by: planning and Fiscal Year 2013-2016 Oklahoma State Plan for coordinating at the state and local level; Services to Children and Youth; independent monitoring of the children and youth • Continue to respond to citizen's complaints in service system; testing models and demonstration an efficient and timely manner through the programs for effective services; and certifying state Office of Juvenile System Oversight. operated children's shelters. Major Agency Projects Programs OCCY is the designated state agency to provide staff • Office of Juvenile System Oversight support to two legislatively created Task Forces: The • Joint Oklahoma Information Network (JOIN) Children of Incarcerated Parents (CIP) Task Force; • Board of Child Abuse Examination and the Foster Care System Improvement Task • Child Death Review Board Force. The CIP Task Force issued their final report • Office of Planning and Coordination and recommendations on January 4, 2012. The • Interagency Coordinating Council Foster Care System Improvement Task Force will • Juvenile Personnel Training issue their final report by March 1, 2012. • Oklahoma Area wide Services Information System (OASIS) Savings, Efficiencies and Shared Services in • Post Adjudication Review Boards FY-2012 • For FY-2012, OCCY did not contract with the For more information about Oklahoma Commission University of Oklahoma (OU)/Health Science on Children and Youth (OCCY), visit their website. Center for the operations of the Child Death FY-2012 Budget by Program Review Board. OCCY provided services direct to 1% 2% Administration the Child Death Review Board, which resulted in 4% 6% 11% Juvenile System Oversight an annual cost savings of approximately $15,000. Office of Planning & Coord • OCCY left the Comptroller position vacant and Juvenile Personnel Training 31% contracted with the Office of State Finance to OK Areawide Information provide business services. It is projected that 45% System Board of Child Abuse Exam this will result in a cost savings of approximately Child Death Review Board $30,000 annually. B-18 FY-2013 Executive Budget Commerce, Oklahoma Department o Oklahoma State Energy Sector Partnership Grant (OSESP – Green Grant) of (ODOC) o H-1B Technical Skills Training Grant (Green Commerce and Tourism Cabinet 2) • Community Development Historical Budget and FTE o Community Action Agencies – Head Start (in $000's) o Community Development Block Grant and $250,000 160.0 140.0 Community Services Block Grant $200,000 120.0 o Community Expansion of Nutrition 100.0 Assistance (CENA) $150,000 80.0 o Continuum of Care $100,000 60.0 o Disaster Recovery Grant 40.0 o Emergency Solutions Grant $50,000 20.0 o Energy Efficiency & Conservation Block $0 FY-2008 FY-2009 FY-2010 FY-2011 FY-2012 0.0 Grant & Energy Efficient Appliance Rebate Appropriation $28,105 $30,935 $46,785 $26,906 $29,073 Program Total Budget $144,887 $143,339 $203,452 $214,866 $162,395 FTE 153.5 156.1 151.5 143.4 134.4 o Head Start Collaboration Program & Head Start Coordination Program o Homeless Assistance Program & Mission Homelessness Prevention and Rapid Re- The Oklahoma Department of Commerce (ODOC) is housing Program responsible for increasing the quantity and quality of o Low Income Home Energy Assistance jobs available in Oklahoma by attracting new Program (LIHEAP) business, promoting the development and o Rural Economic Action Program (REAP) availability of a skilled workforce, supporting o Rx for Oklahoma communities and supporting the growth of existing o State Energy Program & State Energy businesses and entrepreneurs. Assurance Program o Sub-State Planning District Pass-through Programs funds (COGs) o Sustainable Energy Resources for • National Business Recruiting Consumers • Global Recruitment and Trade o Weatherization Assistance Program o International Offices: Shanghai, China; o Wind Safety Turbine Grant Jerusalem, Israel; Mexico City, Mexico; • Main Street Program Berlin, Germany (FDI only) o Small Business Administration STEP Grant For more information about ODOC, visit ODOC's o FDI Team public-private partnership website. • Business Customer Services o Certification o Business assistance – FY-2012 Budget By Program financing/retention/expansion o State/Federal business incentives 6% 2% Contracts for 6% o Business Licensing & Registration Community & Economic Developemt Information System Operational Support • Rural Development Partnership Plan • Quality Jobs Programs Community o Quality Jobs Program Development o Small Employer Quality Jobs Program 86% Global Business o 21st Century Quality Jobs Program • Workforce Solutions o Workforce Investment Act Formula Funds (WIA) o Base Realignment Closure Programs (BRAC) B-19 FY-2013 Executive Budget Accomplishments over Past Year o Increase the number of new jobs from • Business Expansion and Location Activity: infrastructure development for business by o 5,339 total new jobs created; 30% to 300. o Companies invested $862 million in Oklahoma; Major Agency Projects o 22% of recruited new jobs were at 110% of • Fallin for Business – Unprecedented the average county wage; comprehensive statewide survey of business o 19 new companies were assisted in locating owners and executives; to Oklahoma; • OK Job Match – Creation of a statewide citizen o The projected average wage of new Quality service to provide improved employment Jobs enrollees was $51,649; opportunities and citizen success. o Six new small employer Quality Jobs Program contracts were issued; and Savings, Efficiencies and Shared Services in o The Tax Commission paid $61.7 million in FY-2012 Quality Jobs and Small Employer Quality Commerce restructured in the beginning of FY-11 to Jobs benefits. support enhanced economic development initiatives • Oklahoma Main Street Center: and to ensure leadership in efforts to increase and o The 40 Main Street participating retain jobs. A division solely focused on marketing communities had $33.3 million in private was eliminated and replaced by an agile sector reinvestment. communications team to provided target resources • Global Business Services: in order to increase customer services. o 232 clients assisted; o Coordinated 13 business missions and tradeshows along with 6 foreign delegation Rural Economic Action Plan (REAP) visits; and Commerce and Tourism Cabinet o Provided 28 international workshops, seminars and presentations. Mission • Community Development: The Rural Economic Action Plan (REAP) is a grant o 198 new jobs created through business program. REAP provides grants to build and repair infrastructure development and 404 infrastructure in communities with a population of community improvement projects less than 7,000. According to statute, these grants completed; can be used for things such as sewer and water line o RX for Oklahoma assisted 2,800 clients and construction or repair, water treatment, water saved citizens an estimated $6.6 million; acquisition and/or distribution and related projects. o Community Expansion of Nutrition Assistance (CENA) provided funding to 419 multi-purpose senior centers and provided 31,980 meals. Goals for Upcoming Year • Business Expansion and Location Activity: o Assist in the creation of 6,400 jobs; o Achieve a level of 65% of new jobs that are 110% of the average county wage; • Oklahoma Main Street Center: o Increase private sector reinvestment to $48 million providing a 9:1 private to public reinvestment; • Global Business Services: o Increase the number of coordinated business mission and trade shows to 15; • Community Development: B-20 FY-2013 Executive Budget Conservation Commission (OCC) o Blue Thumb Water Quality Education Program Agriculture Cabinet • Information Technology o Geographic Information Services Council Historical Budget and FTE (in $000s) and Office of Geographic Information $70,000 80.0 $60,000 70.0 60.0 For more information about OCC, visit their website. $50,000 50.0 $40,000 40.0 $30,000 30.0 FY-2012 Budget by Program $20,000 20.0 $10,000 10.0 Administration $0 0.0 8% FY-2008 FY-2009 FY-2010 FY-2011 FY-2012 Appropriation $9,187 $10,293 $8,855 $9,845 $9,562 Watershed Operations Total Budget $42,353 $46,741 $63,832 $55,856 $42,614 32% and Maintenance FTE 62.4 67.2 67.6 67.9 65.3 32% Field Service Mission 7% Abandoned Mine Land Reclamation To conserve, protect and restore Oklahoma's natural 21% Water resources, working in collaboration with the Quality/Wetlands conservation districts and other partners on behalf of the citizens of Oklahoma. Accomplishments over Past Year Programs • Completed the rehabilitation of three high • Conservation Programs/Watershed Operations hazard upstream flood control dams to bring the and Maintenance total completed to 22; o Operation & Maintenance of Upstream • Completed 141 rehabilitation assessments on Flood Control Dams high hazard upstream flood control dams o Rehabilitation of Upstream Flood Control (needed in order to qualify for federal Dams construction funds for dam rehabilitation); o New Construction of Upstream Flood • Strategically placed 10 sets of maintenance equipment across the state to support the Control Dams operation and maintenance of the state's 2,107 o Conservation Education upstream flood control dams; o Locally Led Conservation Cost Share • EPA recognition and ranked in the top five Program states nationally for the reduction of • Field/District Services Phosphorus and Nitrogen contaminants in o Conservation District Director Training Oklahoma's streams and rivers; o Conservation District Employee Training • Delisted 4 Oklahoma streams from the EPA 303d o Prescribed Burn Program list of impaired streams; • Abandoned Mine Land Reclamation • Reclaimed 64 acres of scarred abandoned coal o Abandoned Mine Land Reclamation mine land; and Program (coal) • Assisted conservation districts and Natural o Emergency Reclamation Program (coal) Resources Conservation Service (NRCS) in the • Water Quality/Wetlands delivery of over $22 million in federal o Nonpoint Source Water Quality Monitoring conservation assistance to Oklahoma landowners. (surface water) o Priority Watershed Conservation Cost Share Goals for Upcoming Year Program • Complete the rehabilitation of 10 additional o Wetlands Program high hazard upstream flood control dams to o Conservation Reserve Enhancement bring the total to 32 (172 remaining); Program (CREP) B-21 FY-2013 Executive Budget • Complete hazard assessments on 225 upstream flood control dams; • Perform operation and maintenance on 2,107 upstream flood control dams (backlog, $22 million); • Remove 10 additional stream segments from EPA's 303d list of impacted streams; • Develop a 4 state implementation plan to reduce nutrient loading to the Grand Lake of the Cherokee's, in cooperation with the Office of the Secretary of the Environment, in order to begin addressing the blue green algae problem in the lake; • Reclaim 160 acres of scarred abandoned coal mine land; • Deliver through conservation districts and the NRCS, $20 million in federal conservation assistance to Oklahoma landowners. Major Agency Projects • Rehabilitation of flood control dams to protect people living below high hazard dams; • Operation and maintenance of 2,107 upstream flood control dams to provide $81 million in annual benefits; • Implementation of best management practices to improve the water quality in impaired priority watersheds; • Monitoring of streams to assess nonpoint source pollution impacts; • Reclamation of scarred mine land and continued management of the emergency reclamation program to protect citizens from abandoned mine land hazards; • Support of conservation districts so that federal and state assistance, flood protection, reclamation, soil and water quality protection can be effectively delivered. Savings, Efficiencies and Shared Services in FY-2012 • During FY-2011, the 87 conservation districts were setup to receive reimbursements from the Commission electronically. The 87 conservation districts also moved from the submission of paper copies, on the minutes of monthly board meetings, to electronic submission. • Efficiencies in the agency vehicle fleet resulted in reducing the number of leased vehicles by five. B-22 FY-2013 Executive Budget Consumer Credit Department FY-2012 Budget by Program (OKDOCC) 2% Finance and Revenue Cabinet Operations Historical Budget and FTE (in $000s) Consumer Counseling $2,500 25.0 Services $2,000 20.0 98% $1,500 15.0 $1,000 10.0 $500 5.0 Accomplishments over Past Year $0 0.0 • The OKDOCC office was relocated and the new FY-2008 FY-2009 FY-2010 FY-2011 FY-2012 Appropriation $669 $669 $576 $535 $332 facility will help to better serve their customers. • Total Budget $1,844 $2,101 $1,701 $1,868 $1,960 FTE 15.4 17.0 17.2 16.6 19.8 OKDOCC reduced the processing time for completed license applications. Average processing time of a completed license Mission application went from thirty (30) days to four (4) The Oklahoma Department of Consumer Credit days. This was accomplished by consolidating (OKDOCC) was created by the Oklahoma Legislature databases, making menus more user-friendly, in 1969. The Department is responsible for the changing the daily deposit procedures and data regulation of consumer credit sales and consumer entry menus, and increasing trained licensing loans in the State of Oklahoma. The Department is staff. also responsible for the licensing and regulation of • OKDOCC found efficiencies with response time mortgage brokers, mortgage loan originators, in handling complaints received from consumers pawnshops, deferred deposit lenders, rental and licensees. purchase lessors, health spa contracts, credit service organizations and precious metal and gem dealers. Goals for Upcoming Year In the last several years, the regulation of unlicensed • Complete the implementation of the AMANDA activity has become a very real concern to many licensing software system for various licenses, citizens of the state and to this Department. As a permit types and inspections in reference to the result, a large percentage of resources, personnel IT consolidation efforts mandated by the and funds are being dedicated to the enforcement of Oklahoma legislature; unlicensed activity throughout the state and beyond. • Continue to improve response time for resolving complaints fairly and quickly, especially those Programs that involve unlicensed activity which can result • Consumer Counseling Services in the most harm to Oklahoma citizens and • Licensing and Regulation licensees engaged in legal businesses o Mortgage Brokers throughout the State; and o Mortgage Loan Originators • Continue to improve licensing services through o Pawnshops staff training on new methods and from the o Deferred Deposit Lenders implementation of AMANDA. o Rental Purchase Lessors o Health Spa Contracts Major Agency Projects o Credit Service Organizations IT Consolidation AMANDA project. The agency's o Precious Metal and Gem Dealers. goal is to complete the project before the next renewal season, which will start October 2012. For more information about OKDOCC, visit their website. Savings, Efficiencies and Shared Services in FY-2012 OKDOCC reduced state appropriated funds, by working with the Oklahoma legislature and the B-23 FY-2013 Executive Budget industry's the agency regulates. The industry understands the need to pay for these regulations, rather than utilizing appropriated funds to pay for enforcement. In FY-2012, OKDOCC agreed to have appropriations lowered by 40% from the previous year. In addition, efficiencies were achieved by reducing processing time for consumer license applications and resolving consumer complaints. B-24 FY-2013 Executive Budget Corporation Commission (OCC) For more information about OCC, visit their website. Energy Cabinet FY-2012 Budget by Program Administration Historical Budget and FTE (in $000's) $60,000 500.0 Consumer Services 480.0 $50,000 460.0 $40,000 440.0 7% Petroleum Storage 420.0 Tank Division $30,000 400.0 21% 380.0 Oil & Gas $20,000 360.0 21% Conservation 340.0 Division $10,000 320.0 4% Underground $0 FY-2008 FY-2009 FY-2010 FY-2011 FY-2012 300.0 Injection Control 7% Appropriation $12,210 $12,415 $10,735 $10,134 $11,324 Total Budget $48,107 $50,818 $49,677 $53,893 $55,681 Adminstrative 5% 11% FTE 480.3 479.1 430.6 424.7 415.5 Proceedings Public Utilities 1% 23% Mission General Counsel To regulate, enforce laws and supervise activities associated with the exploration and production of oil Transportation and gas, the storage and dispensing of petroleum- based fuels, the establishment of rates and services of public utilities, and the operation of intrastate transportation to best serve the economic needs of Accomplishments over Past Year the public. The Commission oversees the • Completed online trip permit submission; conservation of natural resources to avoid waste, • Continual progress toward construction at the abate pollution, and balance the consumer concerns new ports of entry in Kay and Beckham with the regulated entities, which provide essential counties. El Reno weigh station will open in services for the benefit of Oklahoma. January 2012. • Completed conversion of Oil and Gas Division Programs production reporting to the new Risk-Based Data Management System (RBDMS); • Consumer Services • Implemented purchase card (P/Card) program. • Claims Processing • Regulatory • Petroleum Storage Goals for Upcoming Year • Oil & Gas • Fully implement the PIPES program for Pipeline o Well Plugging Safety; o Grants & Cooperative Agreements • Identify funding for a new Case Management o Mobile Equipment system; • Underground Injection Control • Modify the Telecom and Electric Utility rules; • Administrative Proceedings • Make on-line payments available in the • Public Utilities Petroleum Storage Tank (PST) Division; • State Electrical Regulatory Assistance Grant • Deploy the remaining components of the • Energy Emergency Preparedness Grant RBDMS, including those that allow for electronic filing of additional applications and reports; • General Counsel • Adopt permanent rules to implement the Shale • Transportation Reservoir Development Act; and o Railroad Track Inspection o Pipeline Safety Department • Utilize the P/Card program in all areas of the o Vehicle License & Registration agency to maximize savings. o Transportation IFTA/IRP (International Fuel Tax Agreement/International Registration Plan) B-25 FY-2013 Executive Budget Major Agency Projects • IT continues to develop an IFTA/IRP program. The 72 and 120 hour permit phase was implemented in November 2011. • Migration to Windows 7 on all computers agency-wide; • Automate Oil and Gas Division forms online; • Implement unit costing procedures into existing database for the PST division; and • Explore all payment methods to identify how to increase electronic payments, instead of manual processing of payments. Savings, Efficiencies and Shared Services in FY-2012 • Savings obtained by not filling vacant positions; • Online trip permits allowed for automated submission and workflow in the Transportation Division; • The agency utilized temporary employees instead of filling full-time employee positions; • Consumer Services Division's intervention resulted in a savings of $145,000 for Oklahoma consumers. A total of 31,855 consumers were assisted by this division. • Streamlined qualification procedures for certain gross production tax exemption categories ; • Electronic filing procedures in the Oil and Gas Division improved productivity for both the agency and the regulated industry. B-26 FY-2013 Executive Budget Corrections, Department of (DOC) FY-2012 Budget by Program Safety and Security Cabinet 4% 5% 9% Prison Operations 6% 34% Medical Services 3% General Operations Historical Budget and FTE 1% Contract Facilities (in $000's) Community Sentencing Offender Programs $700,000 6000.0 Prision Industries $600,000 5000.0 20% Community Corrections $500,000 4000.0 Probation and Parole Services $400,000 3000.0 Trust Fund Monies for Offenders $300,000 7% 2000.0 11% $200,000 $100,000 1000.0 $0 FY-2008 FY-2009 FY-2010 FY-2011 FY-2012 0.0 Accomplishments over Past Year Appropriation $477,543 $503,000 $469,025 $462,142 $459,831 Total Budget $566,604 $597,321 $599,024 $561,122 $571,613 • Continued 100% compliance with American FTE 4916.6 4968.2 4653.2 4,150.6 4281.4 Correctional Association national accreditation standards; Mission • Assured 100% of the agency's policies and The mission of the Oklahoma Department of procedures were reviewed annually and in Corrections (ODOC) is to protect the public, the compliance with legal and accreditation employee and the offender. requirements; • The department will protect the public by • Decreased claims processing time for vendor maintaining those remanded to its custody payments from 30.69 days in FY-2010 to 28.26 under the appropriate level of confinement or days in FY-2011; supervision for the duration of their sentence; • Reduced the number of offenders under • Employees will be provided a safe, secure, and community supervision accelerated or revoked positive working environment; to prison from 1,682 in FY-2010 to 1,474 in • Humane supervision and appropriate conditions FY-2011; of confinement will be provided to offenders; • Maintain offenders' success rate at 75% or • Approved evidence-based programs will be greater through continuing education of provided to eligible offenders in order to Community Sentencing providers (FY-2011 promote current and future law-abiding success rate of 87%); behavior resulting in reduced recidivism; and • No escapes from medium- or maximum-security • The department will promote efficiency and facilities; and effectiveness in all phases of correctional • Implementation of security threat group operations. tracking process and completion of intelligence software by Internal Affairs Unit. Programs • Prison Operations Goals for Upcoming Year • Medical Services • Increase percentage of correctional officers who • Contract Facilities complete probationary period and receive • Community Sentences career progressions following training; • Offender Programs • Increase percentage of leadership development • Prison Industries participants who continue employment with • Community Corrections ODOC after completion of two or more levels of • Probation and Parole Services training; • Trust Fund Monies for Offenders • Maintain emergency room visits for offender non-urgent conditions at or below 7% (FY-2011 For more information about DOC, visit their website. rate was 3.2%); • Produce crops and food supplies at a minimum cost to the agency and state of Oklahoma; and • Increase fiscal year sales dollars of Oklahoma Correctional Industries (OCI) products. B-27 FY-2013 Executive Budget Major Agency Projects • Conversion of vacated CareerTech training buildings to offender housing units; • Partnership with World Church Builders, a volunteer organization committed to building chapels at ODOC prisons. Chapels were completed at Eddie Warrior Correctional Center and Bill Johnson Correctional Center. Work is currently underway at Dick Conner Correctional Center for chapels on both the medium- and minimum-security yards. Savings, Efficiencies and Shared Services in FY-2012 • Continued development and implementation of an electronic health record for ODOC Medical Services has allowed rapid access to medical information for any incarcerated offender by medical staff state-wide while eliminating the need for maintaining a paper file for each offender's medical records. Eventually, this will eliminate the transport of large volumes of paper files. The electronic health record will also: o Interface with the ODOC's laboratory vendor, allowing electronic delivery of all lab results; o Provide automated notification alerts to the medical provider if any lab results are outside normal limits; and o Streamline administration of medications, increasing the accountability of staff in relation to medication counts. • ODOC Medical Services increased sharing of supplies between ODOC medical facilities and made all purchase requests automated, allowing for decreased local inventory and wastage due to product expiration; • ODOC Medical Services continued consolidation of medical facility management, placing Howard McLeod Correctional Center and Mack Alford Correctional Center under the same Correctional Health Services Administrator, and Jackie Brannon Correctional Center under Oklahoma State Penitentiary, eliminating the need for two administrative positions; and • ODOC created a program participation database to track all program participation statewide. This database unifies tracking of offender program participation into one format and allows for easy extracts and sharing of aggregate data. B-28 FY-2013 Executive Budget Criminal Appeals, Oklahoma Court of (OCCA) Judiciary Cabinet Historical Budget and FTE (in $000's) $4,000 35.0 $3,500 30.0 $3,000 25.0 $2,500 20.0 $2,000 $1,500 15.0 $1,000 10.0 $500 5.0 $0 0.0 FY-2008 FY-2009 FY-2010 FY-2011 FY-2012 Appropriation $3,490 $3,475 $3,057 $3,456 $3,335 Total Budget $3,437 $3,524 $3,316 $3,358 $3,440 FTE 31.9 31.0 29.5 28.5 30.3 Mission The Court of Criminal Appeals is the highest court in the State of Oklahoma with appellate jurisdiction in criminal cases. It is the state court of last resort in criminal matters, with appeals coming directly from the District Courts and Municipal Courts of Record. The Court also promulgates rules, procedures and uniform jury instructions in criminal cases. For more information about OCCA, visit their website. B-29 FY-2013 Executive Budget Disability Concerns, Office of (ODC) Goals for Upcoming Year Health & Human Services Cabinet To continue to serve all Oklahomans with disabilities and those who are affected by them with the most current and cost effective means available with Historical Budget and FTE information, technical assistance and materials. (in $000's) $700 9.0 ODC will continue to teach six (6) human resource $600 8.0 development courses to state employees on $500 7.0 Disability Awareness as well as continuing education 6.0 $400 to other state agencies. 5.0 $300 4.0 $200 3.0 Major Agency Projects $100 2.0 ODC will be planning training for all ADA 1.0 Coordinators and HR Coordinators throughout the $0 0.0 FY-2008 FY-2009 FY-2010 FY-2011 FY-2012 state on the Americans with Disabilities Act and Appropriation $413 $413 $363 $342 $318 Total Budget $553 $610 $490 $479 $452 other federal and state issues related to Oklahomans FTE 7.9 8.0 7.5 6.1 6.0 with disabilities and their families. Mission Savings, Efficiencies and Shared Services in The Office of Disability Concerns (ODC) provides FY-2012 accurate and timely information/referral, technical The Office of Disability Concerns is excelling in the assistance and advocacy. ODC acts as an state legislatively mandated mission with one-third intermediary for persons with disabilities and less staff and budget levels equal to those of the provide services to those with disabilities. early 1990's. Programs • Employment Assistance Program; • High School Hi-Tech, Tech Now Training; • Client Assistance Program (CAP); • Informational services to occupational groups, educational groups, state agencies, businesses and individuals with disabilities; • Technical assistance on state and federal laws impacting individuals with disabilities; • Advocacy to individuals with disabilities. • Americans with Disabilities Act (ADA) assistance to individuals with disabilities and to the community and businesses that serve them; and • Human resource development classes to state and county employees and supervisors. For more information about ODC's programs, visit their website. Accomplishments over Past Year Served 54,645 people who requested agency services and provided a statewide training conference (in collaboration with the Merit Protection Agency) on new federal guidelines dealing with the Americans with Disabilities Act. B-30 FY-2013 Executive Budget District Attorneys Council (DAC) • Implementation of the Capital Litigation Resource Project, which provides training and Safety and Security Cabinet support for prosecutors dealing with the most serious cases - homicide; Historical Budget and FTE • Through the domestic violence project, (in $000's) encouraged and assisted communities in $120,000 1400.0 developing a coordinated community response $100,000 1200.0 (CCR) to domestic violence. There are now $80,000 1000.0 $60,000 800.0 twenty-six CCR teams statewide; 600.0 $40,000 400.0 • The Traffic Safety Resource Project has $20,000 200.0 enhanced efforts to educate prosecutors and $0 0.0 FY-2008 FY-2009 FY-2010 FY-2011 FY-2012 law enforcement on the complex issues Appropriation $39,920 $42,820 $36,836 $34,258 $32,887 surrounding DUI fatalities; Total Budget $98,018 $97,991 $109,719 $110,330 $107,243 FTE 1144.4 1134.4 1148.9 1,103.6 1,103.5 • Improved services to tribal victims of crime through the State-Tribal Crime Victim Liaison project; and Mission • Saved administrative time and funds through The mission of the District Attorneys Council (DAC) is the automation of fiscal processes. to protect the citizens of the State of Oklahoma through the effective and efficient administration of justice. The twenty-seven District Attorneys in the Goals for Upcoming Year state are officials elected at the district level. They • Pursue solutions to the rising number of highly are responsible for prosecuting state criminal cases explosive "one-pot" methamphetamine labs; on behalf of the public. • Continue review of criminal justice system; • Assist in the review of the child welfare system; • Increase training for prosecutors on ethical Programs issues; and • Prosecutorial Services • Increase funding for district attorneys' offices to • Child Support Services eliminate furloughs and fill critical staff • Bogus Check Enforcement/Restitution positions. • Federal Grant programs • Drug Asset Forfeiture Major Agency Projects • Federal Pass-Through Grants The DAC is in the process of developing and • Crime Victim Services implementing a grant management system for both the Victims and Grants Divisions with federal grant For more information about DAC, visit their website. funds. This will be a complete online system for grant application and acceptance, fund requests and FY-2012 Budget by Program reporting. It will be integrated with the state's financial system, CORE PeopleSoft. 8% Prosecutorial Services 15% 50% General Administration Savings, Efficiencies and Shared Services in Child Support Services FY-2012 Bogus Check The DAC has worked with the Administrative Office Enforcement/Restitution 2% Federal Grant Programs of the Courts (AOC) to develop electronic data exchange technology to enable exchanges of data 8% Drug Asset Forfeiture between the DAC and AOC as well as with other law Federal Pass-Through Grants enforcement agencies. Funded by a federal grant, 8% Crime Victim Services the DAC purchased the necessary hardware and 8% 1% software to implement the project. Accomplishments over Past Year • Significant review and improvement of the District Attorneys Supervision Program; B-31 FY-2013 Executive Budget District Courts Judiciary Cabinet Historical Budget and FTE (in $000's) $70,000 700.0 $60,000 600.0 $50,000 500.0 $40,000 400.0 $30,000 300.0 $20,000 200.0 $10,000 100.0 $0 0.0 FY-2008 FY-2009 FY-2010 FY-2011 FY-2012 Appropriation $57,675 $58,068 $52,503 $57,642 $59,600 Total Budget $58,767 $60,751 $60,204 $60,670 $61,530 FTE 638.9 631.5 626.3 621.6 618.1 Mission To provide a fair and impartial judicial system. For more information about District Courts, visit their website. Accomplishments over Past Year Implemented statewide warrant collection program. Goals for Upcoming Year Unified Court Fund accounting and jury management programs. Major Agency Projects The Supreme Court is in the process of implementing a number of efficiencies including docket management, statistical reporting, jury management, a unified accounting system for tracking district court budgets and managing expenses, e-filing, e-commerce, and information sharing with law enforcement, district attorneys and other executive branch agencies. Savings, Efficiencies and Shared Services in FY-2012 • Staff reductions in the offices of the Court Clerks; • Reduction of security expenses; • Elimination of pilot or limited jurisdiction programs in the district courts; • The District Courts participate in the CORE budget, payroll and financials programs through the Office of State Finance. B-32 FY-2013 Executive Budget Education, Oklahoma State o Reading Sufficiency Act; o 3rd grade graduation; Department of (SDE) o Transition efforts to the Common Core Education Cabinet Standards (CCSS) and Partnership for Assessment of Readiness for College and Careers (PARCC) Assessments; and Historical Budget and FTE (in $000's) o Implementation of the Oklahoma C³ $4,000,000 400.0 $3,500,000 350.0 Standards. $3,000,000 $2,500,000 300.0 250.0 • SDE developed a comprehensive design for a $2,000,000 200.0 State Longitudinal Data system (SLDS) that $1,500,000 150.0 $1,000,000 100.0 encompasses a P12 Oklahoma Accountability $500,000 50.0 and Student Information System (OASIS) and $- 0.0 FY-2008 FY-2009 FY-2010 FY-2011 FY-2012 submitted a $5 million dollar SLDS grant Appropriation $2,480,155 $2,531,703 $2,231,731 $2,236,035 $2,278,158 application to the US Department of Education Total Budget $3,104,645 $3,642,303 $3,607,647 $3,605,691 $3,041,329 FTE 374.9 370.0 368.2 328.8 275.4 to advance the development of OASIS; • Superintendent Barresi issued a call for Oklahoma: By the year 2020, each student Mission graduating from an Oklahoma high school must The mission of the Oklahoma State Department of be college, career and citizen ready. It is called Education (SDE) is to improve student success the C3 Plan. Building on the success of a slate of through service to students, parents and schools; reforms passed by the Legislature and signed leadership for education reform; and into law this year, the C3 Plan sets the stage for regulation/deregulation of state and federal laws to Oklahoma to win the competition for provide transparency and accountability while excellence. removing barriers to student success. • Created the REAC3H Network (Regional Programs Educators Advancing College, Career and Citizen • Instruction Readiness Higher) in order to implement • Accountability & Assessments legislative reforms and introduce the new TLE system and to assist schools with the transition • Student Support to the CCSS. REAC3H utilizes volunteer • Financial Services coordinating districts to work with other • Special Education districts to disseminate information, share best • Federal Programs practices and offer training. For more information about SDE, visit their website. Goals for Upcoming Year FY-2012 Budget by Activity • Implement educational reforms passed during the 2011 Legislative Session by establishing rules and internal policies consistent with legislative 7% mandates and refine existing rules to comply 13% Financial Support of Schools with current legislative initiatives; Health Insurance • Facilitate Literacy Professional Development for Other 1,200 teachers and 30 Literacy Coaches; revise 80% template for Oklahoma Districts' and State Literacy Plan and create "Oklahoma's Plan to Ensure Student Literacy by the End of 3rd Grade" document. • Provide schools two critical tools: 1) "My Data," Accomplishments over Past Year a complete set of student level data for all • SDE implemented various legislative reforms for students (including transfer students) and 2) an education, including but not limited to: early warning indicator system to alert schools o A-F Grading System; with data suggests that individual students may o Teacher Leadership Effectiveness (TLE) be at risk of dropping out of high school as early Evaluation System; as the 3rd grade. B-33 FY-2013 Executive Budget Major Agency Projects Retirement System. All other services, including • Establishment of the A-F Grading Requirements, financial accounting and human resources, are enforcement of ACE graduation requirements, self supported using CORE applications. implementation of Reading Sufficiency Act with a focus on professional development and implementation of a Teacher Evaluation System for statewide application; • Overseeing the literacy training for 30 Oklahoma literacy coaches and 1,200 teachers; • The development of P12 Oklahoma Accountability and Student Information System as outlined in Oklahoma's State Longitudinal Data System grant application; • Adopting the Oklahoma C3 Standards – districts are transitioning by developing their own curricula in line with these standards. The State is on track for a full implementation of the Oklahoma C3 Standards and PARCC assessments over the next three years. • Entering into a pilot year for the Teacher and Leader Effectiveness (TLE) system, with each district across the state able to choose among different models. TLE promises to support all teachers and administrators toward continuous improvement of instructional practices and student outcomes. Savings, Efficiencies and Shared Services in FY-2012 • Under Superintendent Barresi's administration, SDE has reduced staffing from 399 budgeted positions to 319 budgeted positions that resulted in a monthly savings of $281,964; • Better internal contracting procedures and new legislative contract reporting will result in a cost savings to the agency regarding events, trainings, professional development, meetings and SDE sponsored seminars; • Development of a statewide student data system will allow districts and the department to save money and time by creating a more efficient reporting process; • By switching to electronic communication as the primary medium to transmit information to school districts and other stakeholders, SDE has been able to communicate quickly and effectively and gain significant savings in printing and publishing costs; and • SDE consolidated information technology services with the Office of State Finance, effective July 1, 2011 and shares the cost of building security services with Teachers B-34 FY-2013 Executive Budget Election Board • Completed upgrade of several key modules of Secretary of State Cabinet the state election management system to comply with the federal Help America Vote Act (HAVA) and to interface with the new voting Historical Budget and FTE system. (in $000's) $40,000 25.0 20.0 Goals for Upcoming Year $30,000 15.0 • Complete installation of new voting system and $20,000 10.0 successfully conduct 2012 statewide elections; $10,000 5.0 • Complete upgrade of all components of the $0 0.0 FY-2008 FY-2009 FY-2010 FY-2011 FY-2012 election management system. Appropriation $7,786 $6,806 $5,907 $8,047 $7,806 Total Budget $32,544 $33,358 $36,794 $38,023 $32,459 FTE 22.6 22.3 19.4 20.0 18.9 Major Agency Projects In January, 2011, the agency awarded a contract for Mission a new state ballot scanner voting system that The mission of the Oklahoma State Election Board is complies with the requirement of HAVA that voters to achieve and maintain uniformity in the with disabilities be able to vote privately and application, operation and interpretation of the independently. Installation of the system began state and federal election laws with a maximum during 2011 and is ongoing. It will be used for the degree of correctness, impartiality and efficiency. first time on February 14, 2012. Also, to comply with HAVA, the existing voter registration database and election management system is being upgraded. Programs Both of these projects are funded with federal • Data Processing money that was received specifically for this • Elections Management purpose. • Voter Outreach and Registration • Help America Vote Act Savings, Efficiencies and Shared Services in For more information about the Oklahoma State FY-2012 Election Board, visit their website. • The number of precincts statewide was reduced 8.5% during the redrawing of precinct lines; FY-2012 Budget by Program • Four vacant positions remain unfilled; • Travel has been limited to necessary equipment maintenance and training; Administration / Data 24% Processing • Printing and postage expenses have been Elections Mgmt reduced through the use of e-mail and the agency website; and 7% Voter Outreach & Registration • Continuing efforts to explore ways to use 68% 1% Help America Vote Act technology to create efficiencies. Accomplishments over Past Year • Awarded a contract for a new state voting system to Hart Intercivic of Austin, Texas. Worked with the vendor to implement the new system; • Assisted the County Election Boards in completing redrawing of precinct lines after legislative and county commission redistricting; • Reduced the number of precincts statewide by 8.5%; and B-35 FY-2013 Executive Budget Emergency Management, Oklahoma Accomplishments over Past Year • OEM delivered more than $90 million in federal Department of (OEM) disaster assistance and $8 million in state Safety and Security Cabinet disaster assistance through the State Emergency Fund; Historical Appropriation and FTE • OEM responded to two blizzards, two tornado (in $000's) outbreaks, countless fires (25 of which resulted $1,400 30.0 in fire management assistance grants), drought $1,200 25.0 conditions, major flooding and a record- $1,000 20.0 breaking earthquake; and $800 • OEM assistance benefitted individuals, 15.0 $600 businesses owners, municipalities, counties, $400 10.0 school districts, rural water districts and electric $200 5.0 cooperatives impacted by Oklahoma 2011 $0 0.0 disasters and emergencies. FY-2008 FY-2009 FY-2010 FY-2011 FY-2012 Appropriation $837 $1,157 $729 $693 $651 FTE 28.0 27.7 26.7 25.0 23.9 Goals for Upcoming Year • Close out a minimum of three federally declared Total Historical Budget disasters; (in $000's) • Implement a second iteration of SoonerSafe $300,000 Safe Room Rebate Program, allowing additional Oklahoma homeowners to stay safe during $250,000 severe weather; $200,000 • Deliver at least $6 Million in State Emergency $150,000 Funding; $100,000 • Exercising Shelter in a Box will better prepare $50,000 Oklahoma to assist neighboring states in times $- of mass evacuations caused by disasters like FY-2008 FY-2009 FY-2010 FY-2011 FY-2012 hurricanes; and Total Budget $264,031 $197,835 $70,444 $209,100 $128,772 • Continue to bolster the State Local Assistance Program. Mission The Oklahoma Department of Emergency Major Agency Projects Management ("OEM") is required by law to prepare • OEM will launch a new public education for, respond to and aid in recovery from any natural program designed to prepare Oklahomans for or man made disaster which can affect the citizens severe weather. of Oklahoma. • OEM will also complete generator assessments for winter weather shelters, allowing Programs communities statewide to be better prepared • Disaster Relief should severe winter weather require shelter openings; and For information about OEM, visit their website. • To eligible Oklahomans who install above- ground or below-ground safe rooms, OEM's FY-2012 Budget by Program SoonerSafe Safe Room Rebate Program provides a 75-percent rebate – up to $2,000. Learn more 94% at www.soonersafe.ok.gov. Disaster Relief Savings, Efficiencies and Shared Services in Administration Operations FY-2012 6% OEM utilizes the State Attorney General's Office for legal services, the Office of Personnel Management for human resource services, the Employee Benefits B-36 FY-2013 Executive Budget Council for payroll tax assistance, the Department of Central Services Fleet Management for motor pool services and the State Auditor and Inspector for auditing services. B-37 FY-2013 Executive Budget Employment Security Commission • Provided services to over 17,000 veterans; • JobLink (OJL) program had over 107,000 job (OESC) openings listed from employers throughout the Commerce and Tourism Cabinet state, more than 76,000 new job seeker accounts created and more than 2,400 new Historical Budget and FTE employer accounts created; (in $000's) • Unemployment Insurance (UI) division $150,000 800.0 processed over 123,000 claims for 700.0 unemployment insurance. By leveraging 600.0 $100,000 500.0 improvements in both process design and 400.0 300.0 technology, UI reduced customer wait times, $50,000 200.0 increased call volume capacity and increased 100.0 $0 FY-2008 FY-2009 FY-2010 FY-2011 FY-2012 0.0 claim processing times significantly. This Total Budget $100,874 $100,641 $130,777 $141,133 $99,947 resulted in improved customer service, more FTE 696.0 689.4 759.2 742.7 686.9 efficient utilization of resources, and a decrease *The Oklahoma Employment Security Commission is a non-appropriated in FTE administering the program. agency. • Achieved seventh lowest rate in the nation for improper payments and serves as a best Mission practice model for other states. Continuing to OESC's mission is to enhance Oklahoma's economy reduce the number of improper claimants by matching jobs and job seekers, providing through the utilization of technology is a major economic stability through the Unemployment initiative that will continue into the 2013 fiscal Insurance program, providing access to the tools year. necessary to create a skilled workforce and disseminating labor market information to aid in the economic decision making process. Goals for Upcoming Year • Increase staff-assisted job orders, number of quality referrals, number of claimants Programs registering for work and receiving staff-assisted • Unemployment Insurance services and provide quicker engagement of • Employment Services claimants in receipt of services; • Research • Increase the UI trust fund balance, decrease UI • Field Services fraud, and decrease UI duration. • Employment and Training Major Agency Projects For more information about OESC, visit their • OESC will continue its initiative to improve the website. quality and efficiency of its operations through the utilization of new technology. This will FY-2012 Budget by Program largely be achieved through the implementation of a revamped user interface for the online 17% 10% Administration unemployment insurance filing application, a Unemployment Ins new voice response unit used for filing claims by 4% Employment Svc telephone and enhanced technology to better Research 39% Field Svc connect job seekers and employers. 24% Employment and Training • The revamped online user interface for UI claims Data Processing filing is being created to allow for a clearer 3% 3% understanding of the questions being asked and improved customer flow from screen to screen. The new program should result in lower Accomplishments over Past Year application completion times and improved • Provided assistance to more than 150,000 job accuracy of the application. This will result in seekers, seeing over 70,000 of those persons improved customer satisfaction and improved entering employment with a six month claims processing time, lower the amount of employment retention rate of 78%; B-38 FY-2013 Executive Budget post-claim work required and improve the overall efficiency of the UI division's operations. • The new voice response unit used for filing claims by phone will increase productivity on both the front-end and back-end operations. One key feature of the new system will be a call back system for customers who might otherwise have experienced long hold times. • OESC will focus on enhancing employment and re-employment services to connect more employers and job seekers. Virtually connecting the UI claimant system and an enhanced online job bank will provide the framework to move claimants back to reemployment faster. Savings, Efficiencies and Shared Services in FY-2012 Prior to 2010, OESC's employer quarterly contribution reports were mailed to each employer in Oklahoma and were manually processed when returned. Beginning in 2010 OESC introduced the EZ Tax Express online quarterly contribution report filing system. In FY-2012 the EZ Tax Express nearly reached full implementation with over 70% of Oklahoma's employers filing their contribution reports online. A constant line of communication flows from customers, and their input has resulted in many enhancements to the system. Customer survey responses about EZ Tax Express indicate satisfaction with the program and comments about the ease of use abound. The result of this project has led to an improved customer service experience and greatly reduced the cost of processing the contribution reports manually. B-39 FY-2013 Executive Budget Enterprise and Management Historical Budget and FTE Services, Office of (OEMS) (in $000's) $50,000 200.0 (Formerly the Office of State Finance) $40,000 150.0 Finance and Revenue Cabinet $30,000 100.0 $20,000 50.0 $10,000 Historical Budget and FTE $0 0.0 (in $000's) FY-2008 FY-2009 FY-2010 FY-2011 FY-2012 Total Budget $42,423 $42,553 $42,860 $43,882 $43,141 $200,000 250.0 FTE 176.0 174.2 168.5 159.5 157.9 $160,000 200.0 $120,000 150.0 Oklahoma State and Education Employees Group Insurance $80,000 100.0 Board (OSEEGIB) $40,000 50.0 *OSEEGIB is a non-appropriated agency $0 0.0 FY-2008 FY-2009 FY-2010 FY-2011 FY-2012 Appropriation $23,081 $23,081 $22,175 $20,623 $19,179 During the 2011 Legislative session, the State Total Budget $33,507 $103,978 $102,375 $166,503 $82,148 Government Administrative Process Consolidation FTE 155.5 162.6 172.6 183.9 218.9 and Reorganization Reform Act of 2011 (HB2140) Office of State Finance (OSF) was passed by the legislature. This restructured the Office of State Finance (OSF) to incorporate, as new Historical Budget and FTE divisions, the functions of the Department of Central (in $000's) Services (DCS), the Employees Benefits Council $125,000 300.0 250.0 (EBC), the Office of Personnel Management (OPM), $100,000 $75,000 200.0 and the Oklahoma State and Education Employees 150.0 $50,000 100.0 Group Insurance Board (OSEEGIB). $25,000 50.0 $0 0.0 FY-2008 FY-2009 FY-2010 FY-2011 FY-2012 OSF is currently integrating the five agencies into Appropriation $19,054 Total Budget $74,052 $18,713 $84,715 $16,552 $86,856 $15,973 $17,313 $106,295 $115,318 one and will be establishing a broad mission, set of FTE 239.3 243.7 238.2 219.4 221.8 goals, and strategic plan that will encompass all Department of Central Services (DCS) divisions. In the past, these organizations were each reported as a distinct entity. This year, each will be Historical Budget and FTE presented as a division of OSF within this section. It (in $000's) should be noted that new names have been $6,000 80.0 designated for the agency and the new divisions. $5,000 70.0 60.0 $4,000 $3,000 50.0 40.0 Mission 30.0 $2,000 20.0 The Office of Enterprise and Management Services $1,000 $0 10.0 0.0 (OEMS) is part of the Executive Branch. It is under FY-2008 FY-2009 FY-2010 FY-2011 FY-2012 Appropriation $4,892 $4,892 $4,208 $3,914 $3,640 the administrative control of the Director of OEMS Total Budget $4,760 $5,066 $4,689 $4,168 $4,498 who is appointed by the governor, with the advice FTE 67.8 68.0 61.5 53.6 44.7 and consent of the Senate. In the past, OEMS' Office of Personnel Management (OPM) (formerly OSF) main responsibilities resided in the *FY-2008 Total Budget is less than the appropriation due to carryover from FY-08 to FY-09 Division of Budget (Budget), Division of Central Accounting and Reporting (DCAR), Information Historical Budget and FTE Services Division (ISD) and the Telecommunications (in $000's) Division. Due to the HB2140 consolidations, OSF's $7,000 $6,000 40.0 35.0 scope of services was considerably broadened. To $5,000 30.0 include the added duties related to central services, 25.0 $4,000 $3,000 20.0 human resources, state employees' benefits, and 15.0 $2,000 10.0 group insurance, the organization's name was $1,000 $0 5.0 0.0 changed to OEMS. FY-2008 FY-2009 FY-2010 FY-2011 FY-2012 Total Budget $6,154 $5,418 $5,281 $4,804 $5,454 FTE 33.1 34.7 34.8 33.9 33.7 Employees Benefits Council (EBC) *Employees Benefits Council is a non-appropriated agency. B-40 FY-2013 Executive Budget Divisions and Programs o Internal Auditing • Division of Central Accounting and Reporting o Communication & Wellness Training (DCAR) o Operations o Agency Business Services o Compliance & Industry Practice o Gaming Compliance o Finance o GASB & National Issues o Transaction Processing For more information about OEMS divisions, visit: o Accounting & Reporting • Division of Central Accounting and Reporting o Agency Finance (DCAR) • Budget and Policy Division • Budget and Policy Division o Budget Department • Information Services Division (ISD) o Policy and Legislative Services • Human Capital Management (HCM) o Communications • Benefits Management • Information Services Division (ISD) o Planning & Management HB 2140 Consolidation: o Development & Deployment • Transition Project Office / Efficiency and o Engineering Tech Support Performance Division o Finance Administration & Vendor Management DCAM and Central Purchasing: o Compliance • Division of Capital Assets Management (DCAM) o IT Purchasing • Central Purchasing Division o Business Clusters • Transition Project Office / Efficiency and OSEEGIB: Performance Division • Oklahoma State and Education Employees o Transition / Consolidation Office Group Insurance Board (OSEEGIB) o Efficiency Review Team o Performance Measurement & Reporting FY-2012 Budget by Program • Legal Services Division 1% 1% 3% o Legal Department 1% 8% o Rules Administration 6% Administration Budget Division • Human Capital Management (HCM) DCAR (Formerly Office of Personnel Management- ISD OPM) Human Resources o Human Resources Management Tribal State Gaming o Talent Management 80% VOBO Reimbursement o Organizational Planning & Development o Benefits Management Office of State Finance (OSF) (Formerly the Employee Benefits Council-EBC) • Division of Capital Assets Management (DCAM) FY-2012 Budget by Program (Formerly the Department of Central Services- 1% DCS) Administration and Other o Central Printing & Interagency Mail Core Services o Risk Management 48% 41% Federal Property Dist o Fleet Management Central Printing o Federal Property Distribution State Fleet Mgmt o CORE Services Risk Mgmt 6% • Central Purchasing Division 2% 2% (Formerly a division of DCS) Department of Central Services (DCS) o Procurement Operations o Knowledge Center • Oklahoma State and Education Employees Group Insurance Board (OSEEGIB) B-41 FY-2013 Executive Budget agencies' leadership to develop and implement FY-2012 Budget by Program transition plans, and acquiring support functions 2% of the consolidated agencies. This project is 8% ongoing with more than 11 agencies Self-funded Ins Plans consolidating during FY-2012. 45% Third Party Admin Cont • DCAM increased paper, cardboard and metal Medical Reimbursement recycling pickup, and secure document 45% Data Processing shredding to include Capitol Complex agencies plus metro-area agencies, which saved state agencies $59,000; • DCAM returned $3,510,499 to government Oklahoma State and Education Employees Group Insurance Board (OSEEGIB) agencies on sale of their surplus in FY-2011; • DCAM reached its $12 million cost savings target FY-2012 Budget by Program and exceeded bringing the 2 year total to over Administration $20 million; 10% Equal Opportunity & Workforce • HCM directed the interagency team comprised 5% Comm on Status of Women of representatives of the Employees Benefits 13% 40% Employment Selection Services Council, Office of State Finance (CORE), and the HR Development Svcs Oklahoma Public Employees Retirement System 10% Mgmt Svcs and other state retirement agencies in State Employee Asst Prog 18% producing the third annual Total Compensation Network Mgmt Svcs 2% 2% Statement for approximately 34,000 state employees; Office of Personnel Management (OPM) • HCM administered 20,807 online/written tests and 4,504 performance tests statewide for jobs FY-2012 Budget by Program in the classified service; • HCM processed 116,542 applications and opened 3,230 job requisitions; 21% • Benefits Management successfully implemented Admin a reinvention of the OKHealth Wellness Program Wellness Program in 2011. OKHealth is now much more flexible, 52% Data Processing interactive and user-friendly. Free one-on-one 27% health coaching is available for state employees who need it, while many others are able to "self coach" their way to better health by using the Employees Benefits Council (EBC) many resources available on the new OKHealth web site. Accomplishments over Past Year • Benefits Management achieved its goal of • OEMS and the four consolidating agencies have increasing online enrollment. In October 2011, spent a significant amount of time and effort 86% of state employees made their benefits restructuring the new organization based on HB choices online, compared to 78% in October 2140. This included implementing new 2010. reporting structures, continuing operations • OSEEGIB established financial incentives and while leadership responsibilities shifted, and increased benefits to encourage members to managing workloads while staff fluctuated improve personal health status through a significantly. Concurrently, all five affected combination of preventive doctor visits, agencies maintained all levels of services. laboratory tests, and health-risk assessments; • ISD has been working on consolidating all staff, • OSEEGIB established financial incentives and equipment, and technology due to HB 1304. provided free or low-cost products and This includes identifying and locating IT staff and counseling for employees to be tobacco-free. equipment throughout state agencies, aligning Actuarial estimates of plan costs for tobacco- technological competencies of IT staff with the related illness are $52 million annually. needs of the consolidated ISD, working with B-42 FY-2013 Executive Budget • OSEEGIB negotiated deeper discounts with way, Central Purchasing is poised to streamline pharmacies to reduce the cost of prescription its operations and improve its agility. Through a drugs to the plan and members. The new rates variety of measures, Central Purchasing will are estimated to reduce overall member and increase collaboration with state agencies and plan costs by $33 million (10%) annually. thus, better serve them and negotiate the best value in purchasing goods and services. Goals for Upcoming Year • One area of opportunity for OEMS is to work • Develop a unified agency through a deliberative with all state agencies as a resource for and collaborative process that creates maximum efficiency and performance measurement value for OEMS stakeholders; solutions. A team will be established within the • OEMS will work toward the goals of capitalizing newly consolidated agency dedicated to on available resources, continuing to seek cost expanding statewide streamlining efforts saving opportunities and elevating the level of embedded in HB 2140. By working with OEMS service; sister agencies to examine processes and • Following is a list of some of the legislation procedures as well as track value added passed during the 53rd Legislative Session that performance measures, OEMS can further the impact one or all of the divisions of OEMS. Not goals of leadership to improve the effectiveness all legislation and/or provisions are listed here, and efficiency of state services. but the following require significant resources from one or more of the agencies: Savings, Efficiencies and Shared Services in o HB2140: State Government Administrative FY-2012 Processes Consolidation and Reorganization • For 2012, the savings associated with HB2140 is Reform Act of 2011 expected to reach $4.2 million by the end of the o HB1304: Information Technology fiscal year. An annual savings of $6.5 million is Consolidation and Coordination Act estimated for 2013; o HB1207: Oklahoma Innovation, Efficiency • DCAM saved $1,471,377 on energy and and Accountability Act of 2011 maintenance cost in FY-12; o HB1086: Transparency, Accountability and • DCAM Risk Management lowered property and Innovation in Oklahoma State Government liability insurance premiums to state agencies 2.0 Act of 2011 and universities by $7.8 million; o HB1438: Oklahoma State Government Asset • Central Purchasing facilitated an incremental Reduction and Cost Savings Program annual savings for state agencies of $6 million o HB1062: Regarding state health insurance through implementation and utilization of and benefits Central Purchasing state wide contracts; • HCM implemented an efficient online Major Agency Projects applications system, and increased applications • Shared services between the consolidating from approximately 75,000 to 116,000; agencies: OEMS is currently developing internal • Benefits Management streamlined and reduced divisions that will provide services to all other the administrative fee in each of the past two departments within the newly consolidated years. In plan year 2010, the administrative fee agency. Having teams for legal, was 1.25%. For plan year 2011, it was reduced communications, and legislative analysis to 1.20%, resulting in a projected savings of services will provide each division with access to $568,595. For plan year 2012, the fee was these resources, some which may not have been lowered to 1.15%. That is expected to save the available to them in the past. This will enable all state another $725,690. divisions to share information, collaborate, and • Benefits Management's best-and-final-offer effectively complete their own missions more negotiations as well as Aetna's decision to not efficiently. offer its health plans to state employees for plan • Realignment of the reporting structure: The year 2011. Oklahoma's state government is Central Purchasing Division will now directly spending approximately $3.4 million less on report to the Director of the consolidated benefits in 2011 than it did in 2010. agency. By restructuring the organization in this • OSEEGIB realized $5 million through provider claim and claims processing audits; B-43 FY-2013 Executive Budget • OSEEGIB recovered $4.8 million through litigation against McKesson relating to pharmaceuticals; • OSEEGIB reduced claims costs by $3 million due to negotiations with non-network providers; and • OSEEGIB realized $1.93 million recovered from subrogation. B-44 FY-2013 Executive Budget Environmental Quality Department o Drinking Water Facility Construction Permit Approval (DEQ) o Drinking Water State Revolving Fund Environment Cabinet o Source Water Protection o Groundwater Monitoring DEQ Historical Budget and FTE o Operator Certification (in $000s) • Wastewater Regulation $90,000 590.0 o Stormwater Regulation $80,000 570.0 o Wastewater Facility Construction Approval $70,000 $60,000 550.0 o Industrial Wastewater Pretreatment $50,000 530.0 o Integrated Water Quality Assessment $40,000 510.0 o Total Maximum Daily Loads & Water $30,000 $20,000 490.0 Quality Modeling $10,000 470.0 o Toxicity & Biomonitoring $0 FY-2008 FY-2009 FY-2010 FY-2011 FY-2012 450.0 o State Review of U.S. Army Corps of Engineer Appropriation $9,728 $9,728 $8,600 $8,127 $7,558 Permits Total Budget $86,642 $79,495 $69,682 $76,488 $70,328 FTE 573.6 583.7 578.4 580.4 534.2 o Water Quality Management Plan (208 Plan) o Operator Certification Mission For more information about DEQ, visit their website. The mission of the Oklahoma Department of Environmental Quality is to enhance the quality of life in Oklahoma and protect the health of its citizens FY-2012 Budget by Program by protecting, preserving and restoring the water, land and air of the state; thus fostering a clean, Administrative Services attractive, healthy, prosperous and sustainable 14% Customer Service environment. 28% 10% Environmental Programs Complaints & Local Services Air Quality • Air Quality Regulation 12% o Air Emissions Inventory Water Quality o Air Toxics 19% o Air Monitoring 17% Land Protection • Lead-Based Paint Regulation • Asbestos Regulation • Land Remediation o Superfund Accomplishments over Past Year o Voluntary Cleanup Program/Brownfields • Water Reuse Regulations – DEQ worked with o Site Cleanup Assistance/Armories municipalities and private companies to develop • Hazardous Waste Regulation Oklahoma's water reuse regulations. The new • Radiation Protection regulations will allow cities and industries to • Solid Waste Regulation utilize their water more efficiently and eliminate o Landfills the need to treat all water to meet o Planning & Systems Development Environmental Protection Agency (EPA) drinking o Waste Tire Program water standards that are used in industrial o Recycling operations, landscape irrigation, golf course • State Environmental Laboratory maintenance, etc.; • Laboratory Accreditation • Public Utility Sector Regulations – DEQ has • Customer Assistance encouraged processes with the public utility • Small Business Assistance sector and with the EPA, to view increasing • Risk Communication federal air quality rules as having global rather • Major Drinking Water Regulation: than piecemeal solutions; B-45 FY-2013 Executive Budget • Laboratory Information – DEQ has researched, • Electronic Permitting – DEQ continues to purchased and implemented a new Laboratory streamline permitting and renewal processes to Information Management System (LIMS); and an electronic format. • Electronic Permitting – DEQ continues to • Realignment of Customer Services Division – streamline the permitting and renewal There are fewer personnel specifically dedicated processes to an electronic format. to the functions of technical and permitting processes. The agency is making more efficient Goals for Upcoming Year use of existing personnel. • Blue-Green Algae Control – DEQ will develop rulemaking to address pollution from septic systems around the state's recreational lakes that may be contributing to blue-green algae outbreaks; • Asphalt Shingles and Roofing Materials Recycling – DEQ will address the sudden emergence of unregulated asphalt shingles and roofing material recycling facilities; and • Protection of Human Health through Public Water Supply Oversight – DEQ will continue improving public health by ensuring that public water supplies are safe. Major Agency Projects • Support for Oklahoma Public Water Supplies – Lack of funding has made it difficult for DEQ to implement three delegable major drinking water rules in lieu of the United States Environmental Protection Agency. A major current initiative for DEQ is identifying and pursuing means to implement delegable programs in lieu of EPA to the fullest extent possible. • Blue-Green Algae Control –DEQ is developing rules to address pollution from septic systems around the state's recreational lakes that may be contributing to blue-green algae blooms. Additionally, DEQ is planning a major outreach effort to provide information to lake managers on monitoring for blue-green algae blooms, response measures when potential blooms are identified and assistance that DEQ and other agencies may be able to offer. Savings, Efficiencies and Shared Services in FY-2012 • Centralized Agency Motor Pool – DEQ has centralized the fleet of vehicles used in day-to- day activities from a division-based to an agency-based system. This centralization has allowed a more efficient use of state-owned vehicles and reduced funds paid for private vehicle use. B-46 FY-2013 Executive Budget Ethics Commission FY-2012 Budget by Program Secretary of State Cabinet Historical Budget and FTE 39% Administration / Policy (in $000's) Review / Investigation $800 8.0 Registration Svc /Hearings 61% $600 6.0 $400 4.0 $200 2.0 $0 0.0 FY-2008 FY-2009 FY-2010 FY-2011 FY-2012 Appropriation Total Budget $518 $668 $575 $546 $523 Accomplishments over Past Year $584 $761 $700 $647 $668 FTE 6.3 7.0 6.5 5.7 6.0 Reminder notices for filing of Statements of Financial Interests, lobbyist registration/reporting, state candidate reporting and non-candidate committee Mission registration/reporting are now sent by email rather The Ethics Commission is a constitutional state than regular mail. agency which promotes Oklahoma citizens' confidence in state government by: Goals for Upcoming Year • Promulgating rules of ethical conduct for state • Electronic filing of state personal financial officers and employees; disclosure statements • Promulgating rules of ethical conduct for state • Review of state campaign reporting forms candidate and issue campaigns; • Providing assistance in and monitoring the disclosure of campaign financing for state and Major Agency Projects local candidates and committees, personal • 2012 State and County Elections financial disclosure for state and county officers/employees and registration and Savings, Efficiencies and Shared Services in reporting by lobbyists; FY-2012 • Providing assistance in and monitoring the • Rather than printing the agency's Rules, Acts, political activity and official conduct of state manuals and forms, they are available in the officers/employees in order to prevent conflicts Ethics Commission website; of interest; • Emailing reminder notices to those required to • Serving as the repository and making available file forms with the Ethics Commission rather for public inspection and copying all required than sending them by regular mail has disclosure documents; and decreased both postage and printing expense • Issuing opinions on and investigating and/or dramatically; and prosecuting alleged violations of its rules. • Late letters and late fee assessment notices sent to those who fail to file their reports timely with Programs the Ethics Commission are now sent by regular • Policy Review and Investigation mail rather than certified mail. • Registration Services and Hearings For more information about the Ethics Commission, visit their website. B-47 FY-2013 Executive Budget Fire Marshal, Oklahoma State Goals for Upcoming Year Agency field personnel are researching different (OSFM) types of web-based software utilized by other Safety and Security Cabinet governmental agencies to report and store fire investigations and code inspections data to eliminate Historical Budget and FTE paper reporting. (in $000's) $3,500 35.0 Major Agency Projects $3,000 $2,500 30.0 25.0 New web page using "ok.gov design" to provide $2,000 20.0 easier access to information and faster update $1,500 15.0 $1,000 10.0 notifications to customers and agency personnel. $500 5.0 $0 0.0 Appropriation FY-2008 $2,271 FY-2009 $2,271 FY-2010 $2,077 FY-2011 $1,932 FY-2012 $1,797 Savings, Efficiencies and Shared Services in Total Budget $2,871 $2,868 $3,040 $2,532 $2,497 FY-2012 FTE 30.5 29.6 27.4 23.9 21.0 Actual savings and efficiencies of the recent goals and modernization projects have yet to be Mission documented. At this time no financial or human To promote safety and awareness and reduce the resources services are shared/contracted with other loss of lives and property to the citizens and agencies. businesses of Oklahoma through public education, investigations, inspections, building plan reviews, code assistance/enforcement and statistical data collection. Programs • Field Operations • Council on Firefighter Training For more information about OSFM, visit their website. FY-2012 Budget by Program 13% 38% Administrative Services Field Operations Council on Firefighter Training 49% Accomplishments over Past Year • Automatic vehicle locators to provide location of field personnel for security purposes; • Smart phone usage between field and office personnel to provide quicker service to the customer. B-48 FY-2013 Executive Budget Governor The Governor presides over, or is a member of, the following state boards and commissions: • State Board of Equalization (Article 10, Section Historical Budget and FTE 21) (in $000's) $4,000 35.0 • Interstate Oil Compact (52 O.S. 201) 30.0 $3,000 25.0 20.0 • Oklahoma Historical Society (53 O.S. 1.6) $2,000 15.0 $1,000 10.0 • School Land Commission (64 O.S. 156) 5.0 $0 0.0 FY-2008 FY-2009 FY-2010 FY-2011 FY-2012 • Capital Improvement Authority (73 O.S. 98.2) Appropriation $2,662 $2,662 $2,290 $2,130 $1,981 Total Budget $3,182 $3,125 $2,834 $3,015 $2,693 • Oklahoma Capitol Complex Centennial FTE 32.9 31.6 27.9 27.3 25.6 Commission (73 O.S. 98.2) As Chief Magistrate of the State, the Governor is vested by the Oklahoma Constitution with "the • Transportation Commission (69 O.S. 302) Supreme Executive power." • Educational Commission (70 O.S. 506.1) At the beginning of each session of the Legislature, • Commissioners of the Land Office (70 O.S. 611) the Governor presents the budget recommendations • Southern Regional Educational Compact (70 O.S. for the various state agencies and reports on the 2127) condition of the state of Oklahoma. Every bill passed by the Legislature during regular session and prior to • Oklahoma Transportation Authority (69 O.S. 1703) adjournment is presented to the Governor, before it • Indian Affairs Commission (74 O.S. 1201) becomes a law. The Governor signs the bill if approved; if not, the bill is vetoed and returns with • Southern Growth Policy Board (74 O.S. 3501) objections to the Legislature, which can override a • Contingency Review Board (74 O.S. 1201) gubernatorial objection by a two-thirds vote. For more information, visit the Governor's website. When any state office becomes vacant, the Governor, unless otherwise provided by law, appoints a person to fill such vacancy, in certain Savings, Efficiencies and Shared Services in instances by consent of the Senate. The Governor is FY-2012 Commander in Chief of the state militia. • Reduction in level of full-time employees; • Utilization of shared services through the Office Additional duties of the Governor include: of State Finance for all accounting, human resources, IT, and purchasing; • conducting the business of Oklahoma with other • For the first time in the history of the Office of states; the Governor, implemented a new and more • granting commutations, pardons and paroles, cost-efficient state travel policy for employees and processing extraditions; under Fleet Management and the Department of Central Services; • approving agency rules; • Elimination of various costly accounts and • negotiating tribal compacts; duplicate subscriptions such as Lexis Nexis, Hasler, ISC International, Calvert's and more, • conserving the peace throughout the state; which were not central to the successful • issuing executive orders on various matters operation of the office; including emergency declarations. • Achievement of cost-savings through increased use of state purchasing card system; and • Utilization of online electric payment system and overall reduction of paper use. B-49 FY-2013 Executive Budget Health Care Authority (OHCA) Accomplishments over Past Year Health & Human Services Cabinet • Health care access to the underserved and vulnerable populations of Oklahoma: Historical Budget and FTE SFY09 SFY10 SFY11 (in $000's) 500.0 $5,000,000 % of Oklahomans 22.5% 23.8% 25.6% 400.0 Enrolled in $4,000,000 SoonerCare $3,000,000 300.0 Unduplicated 825,143 885,547 968,318 200.0 SoonerCare $2,000,000 Enrollment $1,000,000 100.0 % Change in 3.5% 7.3% 9.4% $0 0.0 Enrollment FY-2008 FY-2009 FY-2010 FY-2011 Appropriation $771,709 $842,122 $549,273 $699,876 $912,219 FY-2012 Unduplicated Insure 28,706 46,166 48,226 Total Budget $3,995,753 $4,236,043 $4,768,667 $4,543,041 $5,230,445 Oklahoma FTE 410.9 433.9 453.2 450.7 474.8 Enrollment Mission • Quality / Satisfaction and Member To purchase State funded health care in the most Responsibility: efficient and comprehensive manner possible and to study and recommend strategies for optimizing the SFY09 SFY10 SFY11 accessibility and quality of health care. Getting Care 88% 82% 87% Quickly (CAPHS (Child) (Adult) (Child) Survey) Programs The Oklahoma Health Care Authority administers Well Child Visits 97% 98% Not st (1 15 months of Available SoonerCare which is Oklahoma's Medicaid program. life) The Oklahoma Health Care Authority has the task of providing government-assisted health insurance Women Seeking 94% 97% 96% coverage to qualifying Oklahomans. SoonerCare Prenatal Care offers varying health benefit packages, and each has a different name. Each of those benefit packages is • Member Benefits: listed below: SFY09 SFY10 SFY11 • SoonerCare Choice Unduplicated 28,446 28,637 30,113 • SoonerCare Providers • SoonerCare Supplemental % of Members – 64% 67% 64% • Opportunities for Living SoonerCare Choice / • Soon-to-be-Sooners Medical Home • Insure Oklahoma Employer-Sponsored Insurance (ESI) • Responsible Financing / Administration: • Insure Oklahoma Individual Plan (IP) SFY09 SFY10 SFY11 For more information about OHCA , visit their Program Cost Per $4,892 $4,911 $4,712 website. Member % Change – Cost Per 1.6% .04% (4.1)% Member % Total OHCA Adm to 2.6% 2.2% 3.0% Program Costs Goals for Upcoming Year • To continue to provide and improve health care access to the underserved and vulnerable populations of Oklahoma; • To protect and improve member health and B-50 FY-2013 Executive Budget satisfaction, as well as ensure quality with providers receive hands-on technical assistance programs, services and care; using an innovative "Practice Facilitation" • To promote members' personal responsibilities approach. for their health services and utilization, • Fetal Infant Mortality Rate Project (FIMR) behaviors and outcomes; In March 2011, OHCA launched FIMR, a program • To ensure that programs and services respond aimed at lowering infant mortality rates in the to the needs of members by providing necessary ten worst performing counties of Oklahoma. In medical benefits to SoonerCare's members; 2007, Oklahoma ranked 46th in the country with • To purchase the best value health care for an infant mortality rate of 8.5 per 1,000 live members by paying appropriate rates and births. As of June 30, 2011 the program had 811 exploring all available options for program women enrolled. The program continues to financing to ensure access to medical services grow, adding approximately 100 members per by SoonerCare's members; and week. While the program is only a few months • To foster excellence in the design and old, OHCA hopes it will be a factor in lowering administration of the SoonerCare program. Oklahoma's Infant Mortality Rate to below the national average of 8%. Projects, Savings, Efficiencies and Shared • Dual Eligible Project The OHCA dual eligible project involves taking a Services in FY-2012 three pronged approach to determining the • OHCA Pharmacy Program most efficient methods of care integration for Thanks to wide availability of generic the Medicaid / Medicare dually eligible medications, OHCA can provide a robust population. Each of the three concepts pharmacy benefit for SoonerCare members. For identifies a different aspect of care for these 2011, the generic utilization rate jumped to individuals and will be developed to identify the more than 80 percent. Four of five prescriptions feasibility and effectiveness of each concept. paid for by SoonerCare is filled with a generic The first concept describes OHCA efforts to medication. create an Accountable Care Organization with • SoonerEnroll: Partnering for a Healthy embedded medical education programs that Oklahoma specifically serves high cost patients that are The Oklahoma Health Care Authority eligible for both Medicare and Medicaid. The implemented SoonerEnroll, an innovative plan second concept involves exploring the feasibility to create a statewide infrastructure for outreach of establishing a benefit plan and network, and enrollment for qualified yet uninsured administered and operated by the state. OHCA children. The goal of SoonerEnroll is to proposes combining the funding streams from empower non-profit, public and private Medicare and the Oklahoma Health Care community resources to assist their own Authority (OHCA) and using these funds to community members with accessing the purchase coverage through a plan and network SoonerCare program. With over 200 community developed and administered by OHCA. The final partners and an increase in SoonerCare concept looks at the expansion of Oklahoma's enrollment, SoonerEnroll is a successful model Cherokee Elder Care Program of All-inclusive of a state agency and local communities working Care for the Elderly (PACE) program statewide. together for a healthy Oklahoma. The PACE model combines the services of an • SoonerQuit Prenatal Initiative adult day health center, primary care office and The Oklahoma Health Care Authority partnered rehabilitation facility into a single location. PACE with the Oklahoma Tobacco Settlement provides an all-inclusive and comprehensive Endowment Trust and the Oklahoma State continuum of care designed to maintain and Department of Health on a new initiative to ideally to improve the quality of life for the improve Oklahoma birth outcomes, thereby elderly. improving health care quality and reducing • Emergency Room Utilization Project associated health care costs. This initiative arms The ER Utilization Program continues to provide SoonerCare obstetric care providers with outreach to SoonerCare members with three or information and tools to provide best practices more ER visits in a quarter; excluding those ER for tobacco cessation. Working in partnership visits that result in an inpatient stay. Education with the Iowa Foundation for Medical Care, B-51 FY-2013 Executive Budget is offered to all identified members through a letter and / or outreach call to encourage the timely and appropriate use of primary care services in lieu of emergency room utilization. The ER Utilization Program is responsible for saving OHCA a significant amount of money through cost avoidance. During SFY2010 (the latest data available), the program avoided costs of $3.3 million and demonstrated an ER visit reduction of 13,993 from members with continued eligibility in the post-intervention period. • 1.24 Percent Error Rate – Lowest in the Nation The federal Payment Error Rate Measurement (PERM) program measures improper payments in Medicaid. OHCA had the lowest overall Medicaid error rate compared to the 17 states measured in 2009. The overall national Medicaid estimated error rate was 8.98 percent. Provider engagement and educational initiatives by OHCA audit and performance staff contribute to keeping this rate consistently low. B-52 FY-2013 Executive Budget Health, Oklahoma State Department FY-2012 Budget by Program of (OSDH) Public Health Infrastructure Health & Human Services Cabinet 56% 5% Prevention & Preparedness 5% Services Protective Health Services Historical Budget and FTE (in $000's) 18% Community and Family Health $400,000 2,500.0 Services $350,000 Health Statistics & Information 2,000.0 16% $300,000 Technology $250,000 1,500.0 $200,000 Accomplishments over Past Year $150,000 1,000.0 • OSDH continues to ensure that core public $100,000 $50,000 500.0 health services are provided while working to $0 0.0 implement the priorities of the Oklahoma FY-08 FY-09 FY-10 FY-11 FY-12 Appropriation $73,786 $75,028 $67,553 $61,548 $59,478 Health Improvement Plan (OHIP) and improve Total Budget $382,382 $370,706 $384,639 $378,249 $360,113 health outcomes. FTE 2,350.2 2,218.0 2,172.9 2,071.5 2,010.5 • Wellness Achievements: o Tobacco Use Reduction – The proportion of Mission adults who smoke in Oklahoma is at 23.7%. To protect and promote the health of the citizens of This represents a significant decline in Oklahoma, to prevent disease and injury, and to smoking rates and for the first time there assure the conditions by which our citizens can be are more former than current smokers. healthy. While progress for Oklahoma, only 2 states have higher smoking rates than Oklahoma. Programs o Obesity Rate – The OSDH is optimistic about Community and Family Health Services the latest adult obesity rates with 31.3% • County Health Departments reporting being obese in 2010 as compared • Maternal and Infant Health Programs to 32% in the previous year. This hopefully • Children First represents a change in the trend; otherwise • Child Guidance Services Oklahoma had the largest increase of any • Women, Infants and Children (WIC) state over the last 10 years and will be the most obese state in the country by 2018. • Dental Health o Certified Healthy Business, Schools and • Teen Pregnancy Prevention Communities – In accordance with HB 2774, Prevention & Preparedness Services the OSDH successfully launched the • Newborn Metabolic Screening Certified Healthy Schools and Communities • Chronic Diseases program. The response was overwhelming • Injury Prevention with 154 schools, 43 communities and a • Public Health Laboratory record 262 businesses becoming certified • Communicable Diseases this year. Over the course of the program, o Immunizations the number of Certified Healthy Businesses o Tuberculosis now exceeds 1,000. o HIV/STD - surveillance and prevention • Children's Health Achievements: o As outlined in the OHIP, the OSDH released Protective Health Services the comprehensive children's health plan in • Long Term Care Services February 2011. The plan outlines strategies • Medical Facilities for improving the wellness of children in • Consumer Health Oklahoma from birth to 18. • Restaurant and Motel Inspections Sanitarians o The OSDH coordinated a quality • County Jail Inspections improvement initiative with the Oklahoma For more information about the OSDH's, visit their Hospital Association, March of Dimes and website. OU Office of Perinatal Quality Improvement. 52 of 59 birthing hospitals B-53 FY-2013 Executive Budget voluntarily participated and early results personnel costs associated with the process, as indicate a reduction in scheduled c-sections well as reduced paper, printing, sorting, filing by 66% and scheduled inductions prior to and other costs. 39 weeks by 33%. Delivery after the 39th • Use of State Owned Leased Vehicles week of pregnancy greatly reduces infant FY-12 Savings $1,312,500 mortality and Oklahoma is the 5th worst In October 2010, the department began state for infant mortality with 8.5 infant implementation of an initiative to reduce in- deaths per 1,000 live births. The hospital state travel costs associated with personal cost of caring for a premature infant can be mileage reimbursement through broader 60 times the cost of a normal delivery at application of state-owned/leased vehicles. In term. partnership with the Department of Central • Core Public Health or Operational Services, Motor Pool Division, the department Achievements placed in service over 200 additional vehicles o The OSDH participated in a beta test of the dramatically reducing the costs associated with new public health accreditation standards. recurring business travel. Savings since the As a result of a site visit and review by an initiative was implemented total over $2.1 independent review team, the OSDH scored million. in the top tier and is poised to be one of the first accredited state health departments in the nation. Goals for Upcoming Year • Continued improvement in protecting the public's health and safety, control of infectious disease and emergency response; • Achieving public health accreditation; and • Improving the health and wellness of all Oklahomans, particularly related to tobacco use, obesity and children's health. Major Agency Projects The OSDH is undertaking multiple and significant IT projects aimed at increasing efficiency and improving customer services, including: • Development of on-line licensure and electronic reporting and tracking of inspection activities; • Robust business process analysis for complete consolidation of accounting functions to CORE; and • Mainframe consolidation. Savings, Efficiencies and Shared Services in FY-2012 • Time and Labor Reporting Electronic Signature FY-12 Savings $ 941,000 Prior to electronic signature the agency had all employees print, sign and route timesheets to their supervisor for signature and submission to the payroll office. Now employees and supervisors electronically verify time using an electronic signature system. Savings were generated throughout the department in B-54 FY-2013 Executive Budget Higher Education, Regents for Accomplishments over Past Year • Part of higher education's commitment to the (Regents) Governor was to show the cost savings through Education Cabinet IT achieved through educational discounts and initiatives. Higher education has consistently Historical Enrollment and been able to maintain savings of $40 million per Appropriations (in $000's) year. $1,080,000 155,000 • In 2011, institutions reported the receipt of $1,060,000 $1,040,000 150,000 $612 million in competitive grants for program $1,020,000 $1,000,000 145,000 development and research. $980,000 140,000 $960,000 $940,000 135,000 • During 2009-2010, more than 56,000 hours of $920,000 $900,000 130,000 concurrent enrollment were earned by high $880,000 125,000 FY- FY- FY- FY- FY- school juniors and seniors. 2008* 2009 2010 2011 2012 Appropriation $1,053,9 $1,039,8 $943,353 $943,666 $945,260 Enrollment 136,439 138,770 148,357 153,253 Goals for Upcoming Year *Includes $48.1 million appropriated for OHLAP. Pursuant to O.S. 62-34.87, FY-2009 to FY- • Increase the number of degrees and certificates 2012 Dedicated OHLAP funding is not appropriated but is rather removed from the Individual Income Tax Estimate to fund this program. The state has funded OHLAP at earned by 1,700 each year, under the Complete following levels: FY-2009, $54 million; FY-2010, $54 million; FY-2011, $57 million; and FY- 2012, $63.2 million. College America initiative. • To continue to ensure a seamless transfer of Mission credit transfers among institutions in our state The mission of the Regents is to build a nationally system through the Course Equivalency Project. competitive system of higher education that will This is an effort to maximize the number of provide education programs and services universally courses a student can transfer from one recognized for excellence, expand frontiers of institution to another. knowledge and enhance quality of life. • Performance Funding – Through the work of a Council of Presidents taskforce, comprised of 11 Presidents, review and reform the higher Programs education funding formula that rewards Over 99% of state appropriations to the Regents are institutions for meeting their complete College used to support the institutions in the state system America Goals and incentivizes performance of higher education. The remainder, less than one through increasing their retention and percent, is used for operational costs associated with graduation rates. administration of the system and for the Office of • To begin to eliminate the backlog of endowed Accountability. For more information about the chairs currently waiting state match. Currently Regents, visit their website. Below is a breakdown there is a $271 million backlog which includes of system-wide budget by function. chairs at 21 of Oklahoma's institutions and branch campuses and totaling 718 accounts. Of FY-2012 Budget by Function the total 718 accounts, approximately 80% are for disciplines in Science, Technology, 8% Instruction Engineering, Math and Business. Research 12% Public Service 46% Academic Support Major Agency Projects 8% Student Services Complete College America is the most 6% Institutional Support comprehensive and ambitious higher education 11% Physical Plant initiative ever undertaken by the state of Oklahoma. 4% 5% Scholarships The goal is to increase the number of degrees and certificates earned in Oklahoma by 1,700 per year for 12 years, resulting in a 67 percent increase by 2023. This must be done to meet the projected need of 313,073 additional college-educated workers to keep Oklahoma competitive in a global economy. Oklahoma's Complete College America (CCA) project is part of a unified economic policy initiative that B-55 FY-2013 Executive Budget involves the Governor, postsecondary education, and business and industry. Working through the CCA leadership team and key Cabinet officials, the call has come from the Governor for these priorities to be central to job creation and workforce development in the present and future. Ultimately, what is proposed under the CCA and the National Governors Association's Complete to Compete action plan is an acceleration of efforts to make significant improvements to two critical segments of the educational pipeline in Oklahoma: restructuring remedial and developmental education and developing accelerated degree completion options. Undergirding all of these efforts will be a revised Brain Gain accountability framework that utilizes appropriate components of the state and campus- level CCA and NGA metrics and that reflects these new priorities by measuring and rewarding these state priorities. Savings, Efficiencies and Shared Services in FY-2012 The State Regents' office continually strives to be efficient managers of its resources. The Regents are working in conjunction with the Office of State Finance and the State Treasurer on the implementation of the new streamlined accounts payable process, and are involved with purchasing consortiums and group contracting efforts. As an educational system, the Regents are also able to gain significant savings by using educational discounts associated with information technology infrastructure. Working in conjunction with the institutions higher education, the system achieved $40 million in cost savings for FY-2012. B-56 FY-2013 Executive Budget Historical Society (OHS) opened in 2011. In each case, state support was prioritized by private fund raising capabilities, Commerce & Tourism Cabinet demands in the market place and transparent accountability to determine success or failure. Historical Budget and FTE • Searchable digitization of all Oklahoma in $000's newspapers (5 million pages) from 1844 to $30,000 180.0 160.0 1923; $25,000 $20,000 140.0 120.0 • Funding for a new battlefield museum to open $15,000 100.0 80.0 on the 150th anniversary of the largest Civil War $10,000 60.0 battle in Oklahoma; and 40.0 $5,000 $0 20.0 0.0 • A successful fund raising campaign to design, FY-2008 FY-2009 FY-2010 FY-2011 FY-2012 fabricate, and install a major museum exhibit on Appropriation $14,687 $14,967 $13,184 $12,914 $12,503 Total Budget $22,837 $24,244 $27,797 $28,283 $23,725 the history and legacy of the oil and gas industry FTE 169.6 168.5 164.2 153.4 158.3 from the 1940s to the present day. Mission Goals for Upcoming Year The Oklahoma Historical Society is a state • Establishment of a grants-in-aid program to agency/private membership organization dedicated local organizations that can collect, preserve to collecting, preserving, and sharing the history and and share history at the grassroots level. The culture of Oklahoma and its people. results will be a greater emphasis on best- practices, the leverage of matching funds and Programs sharing of resources for greater efficiencies. • Museums & Sites • Establishing an institutional home for the OHS in • Preservation Tulsa, comparable to the Oklahoma History • Research Center, called the Oklahoma Museum of Popular Culture. The OHS is securing donations For more information about the Oklahoma Historical from the private sector that will match future Society, visit their website. state investment to build a nationally-prominent museum that will be financially self-supporting. FY-2012 Budget by Program Major Agency Projects The following major exhibits will open at the 3% 6% Oklahoma History Center: 10% Admin • "Oklahoma @ the Movies," will feature going to Museums and Sites the movies, Oklahomans on the screen, Preservation Research Oklahomans behind the camera and the image of Oklahoma in movies. The exhibit is funded 81% with a grant from the Inasmuch Foundation. • Other major gallery changes will feature exhibits on the oil and gas industry since the 1940s, the Accomplishments over Past Year riverboat Heroine, which sank in the Red River in • This past year, despite the accumulated effects 1838, and the African-American story in of budget cuts, the Oklahoma Historical Society Oklahoma. reaped the benefits of entrepreneurial • As part of the Oklahoma Civil War innovation based on three long-term strategies: Sesquicentennial, 2011-2015, projects across higher standards, greater efficiencies and the state include a new interpretive center at collaborative partnerships. The transition Honey Springs Civil War Battlefield, a new started with the $1.7 million conversion of the interpretive center at Fort Towson and a $1 Route 66 Museum in 1993, gained momentum million investment at Fort Gibson to repair the with the $62 million Oklahoma History Center in stockade, re-grade the site, replace roofs, and 1999 and became standard operating procedure install interpretive trails and exhibits. with the $9 million expansion of the Cherokee Strip Regional Heritage Center in Enid that B-57 FY-2013 Executive Budget Savings, Efficiencies and Shared Services in FY-2012 The most important structural change for both savings and efficiency was a major reorganization in the Research Division. With the retirements of four senior staff members, a new "Digital Conversion" team was assembled to assess, process and transfer tape and film collections to a digital format. Grant money was used to purchase transfer equipment, and the remaining salary funds were combined with grant funds to assemble a staff of full-time and part- time audio engineers, archivists and collection specialists. With lower state expenditures the OHS is preserving endangered collections, using technology more effectively and creating a data base that will increase revenue through use fees. B-58 FY-2013 Executive Budget Horse Racing Commission (OHRC) Accomplishments over Past Year Human Resources and Administration • Improving equine drug testing procedures and policies; Cabinet • Increased revenue to education from FY-2010 ($13,817,404.07) to FY-2011 ($17,097,365.10); Historical Budget & FTE • Increase quality purses FY-2010 (in $000's) $14,000 45.0 ($25,750,293.00) to FY-2011 ($ 26,783,336.00). 40.0 $12,000 $10,000 35.0 Goals for Upcoming Year 30.0 $8,000 25.0 • Continue to improve the quality and revenue of $6,000 20.0 racing and gaming in Oklahoma. 15.0 $4,000 Major Agency Projects 10.0 $2,000 5.0 $0 FY-2008 FY-2009 FY-2010 FY-2011 FY-2012 0.0 • Scanning documents to provide access for all Appropriation $2,670 $2,670 $2,297 $2,136 $2,072 staff members at any location. The agency will Total Budget $13,077 $13,298 $13,252 $12,974 $13,136 FTE 42.1 41.4 39.0 36.7 35.0 scan and archive internal forms, applications, rulings and historical documents. • Implement digital fingerprinting to expedite the Mission process; The Oklahoma Horse Racing Commission (OHRC) • On- going projects of updating and streamlining encourages agriculture, the breeding of horses, the current databases and applications; growth, sustenance and development of live racing, • Continuing investigations concerning illegal pari- and generates public revenue through the forceful mutuel horse racing and gaming. control, regulation, implementation and enforcement of Commission-licensed racing and gaming. Savings, Efficiencies and Shared Services in FY-2012 The agency has made the following cost savings: Programs • Returned leased vehicles to DCS; • Race Day Expenses • Reduced travel to only essential operations; • Law Enforcement • Reduced Commissioner travel to Commission • Oklahoma Bred Program Meetings; • Gaming Regulation • Changed telephone service; For more information about OHRC, visit their • Utilized more efficient copiers; website. • Eliminated or reduced subscriptions to online services (i.e. Accurint, CLEAR, WestLaw, etc.) • Any vacancies created by retirement or FY-2012 Budget by Program resignation have remained vacant, unless it is essential, such as Law Enforcement Agents and Operations 6% Staff Assistants. 15% Race Day Expenses 2% 1% Law Enforcement Oklahoma Bred 76% Program Gaming Regulation B-59 FY-2013 Executive Budget Human Rights Commission Goals for Upcoming Year Human Resources and Administration Senate Bill 763 states that by July 1, 2012, there shall be created within the Office of the Attorney General Cabinet an Office of Civil Rights Enforcement to assume all functions, duties, contracts and responsibilities of Historical Budget and FTE the Oklahoma Human Rights Commission. (in $000's) $1,600 16.0 Savings, Efficiencies and Shared Services in $1,200 12.0 FY-2012 $800 8.0 The Oklahoma Human Rights Commission achieved $400 4.0 savings by not filling vacant positions and generated $0 0.0 FY-2008 FY-2009 FY-2010 FY-2011 FY-2012 revenue through implementation of its federal Appropriation Total Budget $710 $710 $614 $571 $531 contracts with EEOC and HUD. $1,303 $1,309 $1,164 $1,234 $1,328 FTE 14.9 14.1 13.9 12.1 11.8 Mission The Oklahoma Human Rights Commission works to enforce Oklahoma's Anti-Discrimination Act which prohibits discrimination of employment, housing and public accommodations; accept, serve and report on complaints of racial profiling; and promote unity and understanding through educational outreach for Oklahoma. Programs • Enforcement and Compliance • Community Relations For more information about the Human Rights Commission, visit their website. FY-2012 Budget by Program 13% Administration 31% Enforcement and Compliance Community Relations 56% Accomplishments over Past Year The Oklahoma Human Rights Commission continued enforcing its mission and also continued to meet its federal contracts with the U.S. Equal Employment Opportunity Commission (EEOC) and the U.S. Department of Housing and Urban Development (HUD). B-60 FY-2013 Executive Budget Human Services, Department of For more information about OKDHS, visit their website. (OKDHS) Health & Human Services Cabinet FY-2012 Budget by Program Children & Family Svcs 7% Developmental Disabilities Historical Budget and FTE Family Support Svcs $2,500,000 (in $000's) 9,000.0 18% Aging Services 8,000.0 3% 43% Adm/Data Svcs/Finance $2,000,000 7,000.0 5% Child Care 6,000.0 $1,500,000 6% Field Operations 5,000.0 Child Support Enforcement 4,000.0 7% $1,000,000 TANF 3,000.0 10% Aid to the Aged, Blind, and Disabled 2,000.0 $500,000 2% 2% 3% SNAP Benefits 1,000.0 $0 0.0 FY-2008 FY-2009 FY-2010 FY-2011 FY-2012 Appropriation $557,107 $559,107 $420,905 $500,111 $514,518 Total Budget FTE $1,835,773 7,886.0 $2,021,019 8,150.6 $2,200,768 8,103.1 $2,261,448 7,549.0 $2,216,385 7438.5 Accomplishments over Past Year Productivity Continues to Increase Mission FY 2002 – FY2011 The Oklahoma Department of Human Services helps individuals and families in need help themselves lead safer, healthier, more independent and productive lives. Programs • Aging Services o ADvantage Program o Personal Care Program o Local Social and Nutrition Programs • Aging Services • Children and Family Services o 25,221 Oklahomans who are medically fragile o Adoptive Services and financially eligible for nursing facility o Foster Care placement received care in their own homes o Child Welfare through the ADvantage and Personal Care • Child Care Services Programs at a savings of over $300 million in o Child Care Subsidy comparison to the cost of nursing home care. o Child Care Facility Licensing o 6.1 million meals were served or delivered to • Child Support Services senior Oklahomans by contracted community o Paternity Establishment partners. o Child Support Order Establishment and • Children and Family Services Modification o Finalized 1,143 adoptions; o Child Support Enforcement o Supported more than 12,000 children with • Developmental Disabilities Services adoption assistance to their families; o Institutional Facilities o Through the Office of Faith-Based and o Home and Community Based Waiver Community Initiatives, OKDHS launched the Programs 111 Project in April 2011 as a community- • Family Support Services driven collaboration to recruit 111 foster care o Temporary Assistance to Needy Families families from metro Oklahoma City churches, (TANF) faith groups, and private businesses. What o Supplemental Nutrition Assistance Program began as a number goal has evolved into an "SNAP" (formerly Food Stamps) ongoing focus of "1 church, recruiting 1 family o Aid to the Aged, Blind and Disabled for 1 purpose" of leaving no Oklahoma child o Adult Protective Services without a family. B-61 FY-2013 Executive Budget o The Building Bridges Visitation Center opened Goals for Upcoming Year in early 2011, a pilot program designed to • Communication: A clear consistent message provide a family-focused environment for about OKDHS will be known by the clients, parents whose children are in foster care; and employees and the public; o The Office of Volunteerism and other OKDHS • Partnerships: Partnerships with stakeholders divisions partnered with numerous faith will be proactively pursued and stakeholder based and community organizations to collect concerns systematically addressed; and provide Christmas gifts to over 6,000 • Customer service: Services will be readily foster children. accessible and provided with consistency. • Child Care Services OKDHS will provide a welcoming environment o Top state in the nation for child care for individuals in need of services. standards (National Association of Child Care • Employee engagement: Workforce planning Resource and Referral Agencies); and development will create an encouraging o In an effort to provide real time information workforce and engaged employees; and OKDHS partnered with ACS State and Local • Business process improvement: Staff and Solutions to develop the provider web portal. divisions will have the skill sets and training The system allows child care providers to see for new ways to do thing and to do effective authorizations, children in attendance and work. Employees will be empowered to meet payment information in real time. customer needs. • Child Support Services o $318 million collected from noncustodial Major Agency Projects parents, reducing dependence on public • Oklahoma Professional Development Registry assistance programs. For every $1 of state (Oklahoma Child Care Services (OCCS)) funding invested, $13.20 of child support is http://www.okregistry.org collected; This registry is a web-based statewide data base o Received the 2011 Outstanding Program where early childhood educators register training Award (National Child Support Enforcement opportunities and child care teachers locate and Association) register for training. Once all educators and child • Family Support Services care teachers are registered and training is tracked, o $945 million of SNAP benefits were the data base will provide valuable information distributed to eligible Oklahoma families, about the early childhood workforce in Oklahoma generating $1.6 billion in economic activity; such as turnover, number in the profession, o Change in the distribution of SNAP benefits credentials and professional development needs. from the first of the month to the 1st, 5th and The data will be used to streamline and target 10th. The change allows clients access to, and resources to improve the quality of child care by the 3,200 participating retailers to stock more, improving the professional development of early fresh fruits and vegetables. It also eliminated childhood teachers. bare shelves at the end of the day, which • OKDHSLive benefits not only clients but provides more In response to an unprecedented growth in Family stock for the general public. Support Services applications and case reviews, o For the fifth consecutive year, OKDHS OKDHS has inaugurated a web site and supporting received the Soaring Eagle award from USDA, business process change to serve DHS's clients Southwest Region for achieving the highest without county or regional boundaries. The goal of combined points for SNAP access, customer the OKDHSLive! initiative is to promote quality service and most improved in payment customer self-service, support consistent responsive accuracy, negative actions and program benefit delivery and preserve face-to-face integrity. interactions with the most value for individual and o 1,748 TANF participants increased their families in need. Though use is voluntary, within the financial independence through employment first six months of operation OKDHSLive.org is and left the program. 3,988 adults already the first choice for benefit renewal for half of participated in the TANF program on average DHS's clients, collecting and delivering information each month. with less delay. Consolidating selected staff into regional support centers has allowed for work to be B-62 FY-2013 Executive Budget balanced across multiple offices and staff resources organizations and state agencies to ensure that to be adjusted to meet shifting demands. single points of entry exist in the long-term services • National Youth in Transition Database (NYTD) and supports system for older adults and for NYTD is a data collection and reporting system that individuals with disabilities. Sometimes referred to tracks the independent living (IL) services provided as "one-stop shop" systems, ADRCs address many of to youth and tracks outcomes that measure each the frustrations consumers and their families state's success in preparing youth for their transition experience when trying to find needed information, from foster care to independent living. OKDHS uses services and support. Through integration or the statewide automated child welfare information coordination of existing aging and disability service system, KIDS, to report bi-annually on demographic systems, ADRCs raise visibility about the full range of data and 13 categories of IL services provided to all options that are available; provide objective eligible independent living youth. information, advice, counseling and assistance; • Oklahoma Bridge to Independence Network empower people to make informed decisions about is a five-year demonstration project targeting young their long term supports and help people access people, 16 to 21 years of age, in rural areas who are public and private long term supports and services approaching independence and young adulthood, programs. but have few or no connections to a supportive, • Adult Day Health Medicaid Initiative and family structure or community. As the Electronic Benefits Transaction (EBT) Initiative demonstration grantee, OKDHS is collaborating with There continues to be a significant push toward first other state entities and an existing, rural runaway determining Medicaid eligibility for any applicant and homeless youth transitional living program to desiring adult day services and a sensible approach develop a long-term strategy for responding to the for efficiently using what state dollars are available needs of this population. This demonstration focuses for this program. Also, a pilot program is underway on improved service coordination and creation of that involves a card swipe system of check-in and additional support for rural youth in three vital areas check-out for all OKDHS eligible participants, of positive youth development: 1) survival support initiation of forms revisions and deletion, reporting services, 2) community, and 3) on a web-based system where providers have access education/employment. to data with which to print their own reports, • Health Passport Program allowing providers to see the balance available on HB 1734 amended 10 O.S. § 7003-5.4 in 2009 to their contracts and elimination of paperwork and require OKDHS to establish a Health Passport staff time for claims which also means discontinuing Program with cooperation of other state agencies. the paper claims process. The bottom line is a more OKDHS began developing the Health Passport expedited payment timeframe for providers and also Program in February of 2010, and the information a twice a month payment rotation. available in the agency's computer system known as • Consumer Directed Initiative through ADvantage KIDS provides the majority of the Health Passport To give some Medicaid consumers more control over Program information, including medical, psycho- their in-home care, OKDHS created a consumer- social information and Medicaid claims. This directed personal care service option within the information is summarized in the Health Passport ADvantage Program. That service, Consumer Program Report which is now available through Directed Personal Attendant Services and Supports secure, online log-in access to the Health Passport (CD-PASS) allows the consumer to hire, fire, train Program application by the resource parents. and schedule the attendant who assists them with Statewide implementation of this piece of the Health their activities like bathing, grooming, housecleaning Passport Program began in June 2011 and has been and walking. It is a pilot program in ADvantage with completed. Project team members are currently plans to expand to the entire state. The majority of working with the Oklahoma State Department of ADvantage consumers use traditional home care Education (OKSDE) on determining educational data agencies instead of CD-PASS for their personal care. fields that can be obtained through OKSDE and Consumers who elect CD-PASS do not receive an shared within the Health Passport Program Report. additional amount of services; they are just given • Aging & Disability Resource Consortium (ADRC) more authority on how those services are delivered. Initiative • Chronic Disease Self-Management Program The Aging and Disability Resource Consortium (CDSMP) (ADRC) is a collaborative effort with dozens of B-63 FY-2013 Executive Budget CDSMP is a lay-led participant education program then become standard operating procedures to be offered in communities in the United States and implemented across the state. several other countries. It is a 6-week program that meets once a week for 2 ½ hours each session. Savings, Efficiencies and Shared Services in Participants are adults experiencing chronic health FY-2012 conditions such as hypertension, arthritis, heart • Bond Issue Refinancing disease, stroke, lung disease and diabetes. Family OKDHS began the process of refunding the 2000 and members, friends and caregivers can also 2002A Bond Series in FY-2012. Doing so will save the participate. The program provides information and agency approximately $669,378 in interest costs teaches practical skills on managing chronic health which will be re-invested in a new bond series, problems. The CDSMP gives people the confidence funding $10 million in new projects. Debt service on and motivation they need to manage the challenges the new bond will not exceed the current budgeted of living with a chronic health condition. In debt service. Additionally, the new bond will be paid Oklahoma the program is called Living Longer, Living off in eleven years, rather than the typical fifteen Stronger with Chronic Conditions and consists of a years. partnership of the Oklahoma Department of Human • Imaging Client Records Services Aging Services Division, the Oklahoma State OKDHS staff handles millions of pieces of client Department of Health, Oklahoma Health Care paperwork each year, yet continues to look for ways Authority, Area Agencies on Aging, local County to reduce the amount of paper being generated and Health Departments, Oklahoma Department of stored. The effort to store files electronically is Mental Health and Substance Abuse Services and allowing staff to minimize or even reduce the need many other local community organizations. Since for additional file storage. As an example, a 2006, DHS has reached over 2,300 participants. purchase of an $80,000 filing system for the Skyline • Mosaic building in Tulsa was avoided, which would have Every state's child support program is required by been necessary if the records were stored in paper law to operate a state system that can effectively format. The agency is also beginning to experience and efficiently deliver and account for child support reductions in paper usage (almost 2,000 fewer cases payments, usually delivering paid support within two of copy paper in FY-2011 vs. FY-2010) in spite of days of receipt. The system that was developed for higher client numbers. Oklahoma Child Support Services was built on • Postage technology from the 1980s and is no longer easy to Due to initiatives such as address "cleansing," use or update. For several years now Oklahoma has reconsideration of the necessity of certain client been working with federal partners to seek notifications and improved mail size management, permission to build a new enterprise system called OKDHS is sending nearly 1.5 million fewer pieces of Mosaic that will be easier to use and will provide mail and has maintained a nearly constant postage shared information on OKDHS customers for any of budget, in spite of continual USPS postage its component divisions. 2012 will hopefully see the increases. Additionally, the DHS Mail Manager was beginning of proposals coming from companies who recognized by the Greater Oklahoma Postal are able to help build such a system, which is long Customer Council as the 2010 Mail Manager of the overdue. Year for his efforts to maximize his postal budget, • Consistent Excellence initiative reduce "bad address" mail and keep abreast of ever- For 2012 Oklahoma Child Support Services will changing postal requirements. continue its Consistent Excellence Initiative, a • Financial System Improvements statewide project to find and implement best OKDHS has operated a system to electronically practices. With over 200,000 open cases, OCSS staff process employee travel claims since 1999 ("Speed- knows that only by sharing tried and proven e-Travel"). This system was updated in a very short strategies and procedures can the program hope to timeframe to interact with the Trip Optimizer system offer the best possible service to so many deserving and allow staff to comply with the requirements of Oklahoma families. Committees involving subject HB 1035 while maintaining the efficient electronic matter experts, caseworkers and program attorneys processing. have been formed to solicit best practices from all o OKDHS has built several uploads that take areas served by the statewide program, which will large electronic invoices from vendors such as AT&T and Centrex and convert those B-64 FY-2013 Executive Budget electronic invoices into the detail entry for payment with very little staff time and has created interfaces for electronic submission and payment of invoices in the integrated financial system. o OKDHS has developed processes within the integrated financial system to automate and streamline the process of gathering data and document efforts on federal programs in order to appropriately allocate expenses to federal grants. • Kiosks and other electronic payment projects for child support payments: Going nearly paperless a few years ago has saved the state thousands of dollars in the cost of cutting and mailing child support checks to customers, and Oklahoma Child Support Services is continuing to look for ways to make paying support more streamlined. In addition to enabling employers and others to make payments over its secure website, OCSS has now partnered with sites at convenience stores all over the state to allow non-custodial parents to send in child support at kiosks where customers can also pay other bills. OCSS is also looking at other ways in which customers can more efficiently provide their monthly support payments, such as at grocery stores and financial institutions around the state. B-65 FY-2013 Executive Budget Indigent Defense System (OIDS) Savings, Efficiencies and Shared Services in Safety and Security Cabinet FY-2012 The agency continues to implement document scanning in order to reduce the costs of excessive Historical Budget and FTE paperwork. The agency has also installed a system (in $000's) to visualize computer servers as a cost avoidance $24,000 140.0 120.0 measure and to simplify server management. $20,000 100.0 $16,000 80.0 $12,000 60.0 $8,000 40.0 $4,000 20.0 $0 0.0 FY-2008 FY-2009 FY-2010 FY-2011 FY-2012 Appropriation $16,304 $16,734 $14,555 $15,154 $14,699 Total Budget $18,944 $19,305 $18,309 $17,941 $18,789 FTE 122.8 124.0 118.1 112.6 110.2 Mission Oklahoma Indigent Defense System's (OIDS) mission is to provide indigents with legal representation comparable to that obtainable by those who can afford counsel and to do so in the most cost- effective manner possible. Programs • Appellate Services • Trial Services • Non-Capitol Contracts • Regional Offices • Forensic Testing For more information about OIDS, visit their website. FY-2012 Budget by Program 4% 24% Appellate Services General Operations 23% Trial Services Non-Capital Contracts Regional Offices Forensic Testing 4% 29% 16% Accomplishments over Past Year OIDS continued to provide constitutionally-effective legal representation to its court-appointed clients. Goals for Upcoming Year OIDS will continue to provide effective legal representation in an attempt to satisfy the obligations of the State under federal and state law. B-66 FY-2013 Executive Budget Insurance Department (OID) Accomplishments over Past Year Finance and Revenue Cabinet • OID's financial division gained full accreditation through the National Association of Insurance Commissioners; Historical Budget and FTE (in $000's) • Implemented the SBS (State Based System), an $18,000 150.0 electronic filing system that efficiently and $16,000 140.0 $14,000 130.0 effectively processes license applications, $12,000 120.0 renewals, inquiries and complaints with a 110.0 $10,000 100.0 minimum of effort, while remaining compliant $8,000 $6,000 90.0 with national uniformity initiatives; 80.0 $4,000 70.0 • Returned $1 million in federal funding $2,000 60.0 earmarked for health insurance rate review, to $0 50.0 FY-2008 FY-2009 FY-2010 FY-2011 FY-2012 prevent redundancies; Appropriation $2,516 $2,516 $2,164 $2,013 $1,872 Total Budget $12,153 $12,598 $14,162 $15,945 $14,945 • Re-opened the child-only insurance market after FTE 139.6 120.9 125.2 120.6 117.2 15 months of closure, with the assistance of Governor Fallin's office; Mission • Restructured OID's leadership team; The mission of the Oklahoma Insurance Department • Created two new task forces, CAT Team (OID) is to protect and enhance the financial security (Catastrophe Response Team) charged with of the citizens of Oklahoma. preparing Oklahoma's insurance industry to deal with disaster situations and an Uninsured Programs Motorist Task Force, which works to increase • Regulation insured motorists in Oklahoma; and o Insurance companies • Redirected the mission of the Anti-Fraud Team o Agents to fight white-collar crime and ensure consumer o Adjusters protection. o Health Maintenance Organizations (HMOs) o Business Entities Goals for Upcoming Year o Real Estate Appraisers • Improving OID's multimedia communication o Bail Bondsmen tools, which includes upgrading the website • Financial Oversight using Drupal's open source content technology o Financial Examinations and implementing mobile phone application; o Financial analysis • Hold inaugural Tornado Summit and Domestic o Rules CEO Roundtable, respectively; o Statutes • Extend OID's customer service capability • Medicare/Medicaid Fraud Prevention throughout Oklahoma by creating four field o State Health Insurance Counseling Program representative positions covering all 77 (SHIP) counties; • Recruit more insurance businesses to the state For more information about OID, visit their website. through the "Open for Business" initiative; and • Expand health insurance coverage for the FY-2012 Budget by Program uninsured through Oklahoma's private market, eliminating the need for federally mandated 4% regulations. 10% 20% Administration Regulatory Major Agency Projects Medicare Grants Programs • OID will work to improve communication tools Other Grant Programs in 2012. OID will focus on migration of the current website to Drupal's open source 66% platform, and implementing the newly created mobile phone apps. OID will continue to meet the needs of Oklahoma insurance consumers B-67 FY-2013 Executive Budget and producers, while simultaneously reducing costs for taxpayers, by investing in new technology; • Through the implementation of efficiency- driven management strategies, OID has saved taxpayers approximately $600,000 in the past calendar year. OID will continue this trend and work to bring even greater savings to Oklahoma citizens; • The inaugural Tornado Summit, scheduled for March 11-13th, will highlight the recent tornado activity that occurred in 2011 and look to improve the insurance industry's response to these and other natural disasters. In addition, OID will hold its first CEO Roundtable Event in 2012, bringing together Oklahoma insurance industry leaders and public officials, for a discussion on the state of the industry and mutual goals; • Partnering with the Department of Public Safety to begin work on OID's task forces (CAT Team and the Uninsured Motorist Task Force); and • Expand the financial and market conduct examination process to conduct a greater number of examinations. Savings, Efficiencies and Shared Services in FY-2012 • OID is statutorily granted 153 full-time employees (FTEs); however, through the utilization of new technology and efficiency focused management strategies, the department currently operates with 117 FTEs; • The National Association of Insurance Commissioner's SBS (State Based System) licensing system allows OID a universal reporting system that collects all data required by state and national regulations; and • Extended the term of most licenses issued by the department, from 1 year to 2 years, which reduced the workload of staff, allowing more time for personnel to interact with citizens throughout the state. B-68 FY-2013 Executive Budget Investigation, Oklahoma State • Completed implementation of a Laboratory Information Management System (LIMS); Bureau of (OSBI) • Developed/implemented an Investigative Case Safety and Security Cabinet Management System; • Completed the purchase and deployment of the Mobile Analysis Center; Historical Budget and FTE • Developed and implemented a new electronic (in $000's) Court Assessment Fee reporting application; and $45,000 $40,000 350.0 300.0 • Developed and implemented a new Self Defense $35,000 $30,000 250.0 Act program application. $25,000 200.0 $20,000 150.0 $15,000 $10,000 100.0 Goals for Upcoming Year $5,000 50.0 $0 0.0 • Implement the Oklahoma Applicant Processing FY-2008 FY-2009 FY-2010 FY-2011 FY-2012 Appropriation $17,316 $17,316 $15,824 $14,716 $13,848 System to streamline fingerprint submission for Total Budget $38,839 $38,942 $41,376 $42,290 $38,283 school employees and child care providers in FTE 302.4 316.5 326.5 324.4 310.6 coordination with the Oklahoma Departments of Education and Human Services; • Increase State Incident Based Reporting System Mission participation; and The mission of every OSBI employee is to ensure the • Continued automation of agency business safety and security of the citizens of Oklahoma. processes. Programs Major Agency Projects • Investigative Services • Computerized Criminal History/Message Switch • Criminalistic Services System Upgrade; • Information Services • Laboratory/scientific instruments and vehicle • Information Tech Services – ITS upgrades; • Capital Outlay Projects • Complete the 800 MHz radio project and the high-band radio project with ODOT; and For more information about OSBI, visit their website. • Major upgrade of the Oklahoma Data Information System (ODIS). FY-2012 Budget by Program 6% 9% Administration Savings, Efficiencies and Shared Services in 9% Investigative Services FY-2012 • The OSBI IT and Information Services Division's Criminalistic Services 14% staff members have been able to convert 70 30% Information Services ODIS agencies to the SIBRS program. SIBRS is an electronic reporting system which assists in Information Tech Services-ITS reporting a more accurate reflection of the 32% Capital Outlay Projects crime in Oklahoma; • OSBI has developed a new web-centric, user friendly Automated Criminal History System Accomplishments over Past Year resulting in better public access, as well as the • Reaccreditation of the laboratory system under need for fewer agency personnel; the American Society of Crime Laboratory • OSBI has also deployed a new Self Defense Act Directors/Laboratory Accreditation Board's database program improving functionality and International Accreditation Program (first time processing time for SDA applications; accredited under the international standards • Modifications to the workflow processes in the program); Biology and Toxicology sections are making • Finalized the Oklahoma Law Enforcement more efficient use of reagents and consumable Information Exchange Program (OKLeX); supplies, reducing waste and reducing reagent costs by approximately $75,000 per year; B-69 FY-2013 Executive Budget • Using federal grant funding, the OSBI Laboratory System implemented a comprehensive Laboratory Information Management System (LIMS) which has reduced paper files and allows customers to retrieve laboratory reports on-line; • Again, federal grant funding has allowed implementation of a comprehensive web-based Investigative Case Management System (ICMS). This application allows for instant access to critical information necessary to identify suspects and better track case activities. • Other cost savings include: o A continued hiring freeze; o Reductions in facility and lawn care, saving approximately $100,000 annually; o Elimination of the vehicle take-home practice for Criminalists, with projected savings at $35,000 annually; o Cancellation of the annual employee training conference; and o Identified and purchased numerous chemicals for the laboratory system from vendors other than the state contract vendor, saving approximately $100,000. B-70 FY-2013 Executive Budget J.D. McCarty Center (JDMC) inventory; • Create a volunteer program through Health & Human Services Cabinet collaborative work with Oklahoma public schools, colleges and universities; Historical Budget and FTE • Implement a volunteer/job program for former $25,000 (in $000's) 240.0 patients; • Develop and implement a power mobility 200.0 $20,000 program; $15,000 160.0 • Create and implement at least one additional 120.0 therapy group addressing community needs; $10,000 80.0 • Expand the home computer program; and • Complete the construction of the summer camp $5,000 40.0 (program currently being funded entirely $0 FY-2008 FY-2009 FY-2010 FY-2011 FY-2012 0.0 through donated funding through the generous Appropriation $4,453 $4,453 $3,783 $3,664 $3,359 contributions of individuals and the Chickasaw Total Budget FTE $17,599 207.2 $21,367 211.8 $21,998 217.3 $19,678 231.2 $19,587 222.1 and Cherokee Nations). Mission Major Agency Projects The mission of the J.D. McCarty Center for Children • Utilizing volunteers and donations, develop (JDMC) with Developmental Disabilities is to provide and implement a specialized therapeutic a comprehensive program of habilitative care to camp designed for children with Oklahoma's children with developmental disabilities. developmental disabilities; • As dictated by the Center for Medicare and For more information about JDMC, visit their Medicaid guidelines, acquire and website. implement an Electronic Health Record; Accomplishments over Past Year • Initiate required repairs to J.D. McCarty Center's existing reservoir and dam; • Total patient encounters increased from 42,200 to 45,500; • Upgrade the unit generators enabling the hospital to meet patient needs during the • Outpatient therapy encounters also continued loss of electricity; and to increase; • Initiate and complete repair work on the • Two new treatment modalities were added - hospital buildings damaged by the June 14, therapeutic listening and vital stimulation. 2010 storm. Innovative therapy groups were made available to community participants to include adaptive yoga, pet therapy and a social language group. Savings, Efficiencies and Shared Services in • Through a USDA grant, JDMC expanded the FY-2012 established teletherapy program into a home • Department managers perform many of the computer program, which allows JDMC's day-to-day functions of the hospital and take on therapists to provide services to children dual roles; therefore, J.D. McCarty Center has residing in their homes in rural Oklahoma. shown a 7.7 % decrease in salary expenses as • Developed and implemented an adaptive ballet compared to total budget since 2007. class and a "Parents of Children with Autism" Additionally, various positions were not filled, group in collaboration with Moore Public resulting in a $184,888 savings; Schools. • Therapists currently earn 15-20% below established market salaries for Oklahoma; Goals for Upcoming Year • Travel expenditures were lowered by 31% through the use of technology, which includes • Collaborate with the Office of State Finance to JDMC's teletherapy and home computer develop a written plan outlining the process to program to rural Oklahoma; and acquire and implement an Electronic Health Record; • Budgeted income was exceeded by 11% and expenditures were 3% under budget. • Expand current in-house electronic purchase order system to incorporate the hospital's B-71 FY-2013 Executive Budget J.M. Davis Memorial Commission Goals for Upcoming Year Commerce & Tourism Cabinet • The J.M. Davis Commission will celebrate Mr. Davis's 125th birthday on June 30, 2012. The commission will release a book about Mr. Historical Budget and FTE Davis's life, unveil a desk top statue in his image in $000's and have murals to Mr. and Mrs. Davis ready for $700 7.0 $600 6.0 display in the crypt area of the museum. $500 5.0 $400 4.0 $300 $200 3.0 2.0 Major Agency Projects $100 1.0 • A book is currently being written by author Mr. $0 FY-2008 FY-2009 FY-2010 FY-2011 FY-2012 0.0 John Wooley about the life of J.M. Davis and the Appropriation Total Budget $535 $600 $385 $461 $332 $424 $306 $427 $306 $393 history of the town of Claremore during Mr. FTE 6.5 5.7 6.3 5.8 5 Davis's lifetime from 1887-1973. • Another major project of the J.M. Davis Mission Commission is the building of a World War I The mission of the J.M. Davis Commission is to display. This display will incorporate over 500 house, preserve, display and update the unique WWI posters in the museum's collection. collection of firearms and historical artifacts collected by Mr. J.M. Davis and to provide an Savings, Efficiencies and Shared Services in historical and educational experience for the viewing FY-2012 public. • A new lighting system for the Commission went into effect in 2010. Building of newer displays Programs required fewer fluorescent tubes. This has 100% of the budget for the J.M. Davis Commission is resulted in a savings for the Commission of for Museum operations. For more information about $ 400 over the past eighteen months. JM Davis, visit their website. The chart below shows the breakdown of appropriated and revolving funds for FY-2012. FY-2012 Budgeted Revenue 21% Appropriated Revolving 79% Accomplishments over Past Year • The J.M. Davis Commission provided educational viewings for 30,000 visitors, 14,500 not living in northeast Oklahoma. This resulted in the museum bringing in tourist dollars of over 4.3 million dollars. The Commission opened three new exhibits and hosted several civic functions including Veterans Day flag retirement ceremonies. B-72 FY-2013 Executive Budget Juvenile Affairs, Office of (OJA) 2% FY-2012 Budget by Program Federal Grant Pass-through Health & Human Services Cabinet 5% Administration 20% Historical Budget and FTE 42% Residential $140,000 (in $000's) 1,200.0 Non-Residential $120,000 1,000.0 31% Community Based Youth $100,000 Services 800.0 $80,000 600.0 $60,000 $40,000 400.0 Accomplishments over Past Year $20,000 200.0 • Reduced institutional secure beds from 266 $- FY-2008 FY-2009 FY-2010 FY-2011 FY-2012 0.0 beds to 194 beds with the closure of the 72-bed Appropriation $110,061 $112,254 $103,463 $97,664 $95,916 L.E. Rader Center, which was made possible, due Total Budget $126,801 $129,488 $117,726 $109,357 $114,480 to the almost 25% drop in total referrals to the FTE 997.4 1,007.2 907.4 771.0 723.1 juvenile justice system over the past 10 years; • Opened a 12-bed Level E Group Home for Mission delinquent males, serving ages 11-14, in order The Office of Juvenile Affairs (OJA) is a state agency to serve younger youth in a separate facility entrusted by the citizens of Oklahoma to provide from older delinquents; professional prevention, education and treatment • Awarded a federal grant to serve youth in Tulsa services, as well as secure facilities for juveniles in County in the community re-entry process. order to promote public safety and reduce juvenile Focuses on independent living skills, job delinquency. placement, educational enrollment and appropriate housing. Early outcomes indicate Programs youth are almost twice as likely to be successful Residential Programs: than youth who did not receive the services. • Secure Institutions • Reduced placement waiting list by at least 50%. • Level E Group Homes • Specialized Community Homes Goals for Upcoming Year • Vo-Tech Training • Remodel staff secure building located at the • Therapeutic Foster Home Program Central Oklahoma Juvenile Center in Tecumseh, Non-residential Programs: which will provide the institution with six locking • Juvenile Services Unit - District/County Services rooms to address juvenile behavioral issues at • Juvenile Offender Victim Restitution Work the facility; Program • Increase re-entry service delivery for all youth • Regional Secure Detention Centers exiting out-of-home placements; • Graduated Sanctions Program • Provide more comprehensive training to new • Canadian County Sanctions Detention Program and existing staff. Reintegration Programs: • Community-At-Risk Services Major Agency Projects • Residential Substance Abuse Treatment The Office of Juvenile Affairs is working with the • State Transition and Reintegration Services Department of Central Services to demolish the (STARS) closed L.E. Rader Center in Sand Springs. • Community Based Youth Services Community Outreach: Savings, Efficiencies and Shared Services in • First Offender Program FY-2012 • Emergency Youth Shelters The Agency reduced its funded FTE from 825 in FY- • Community Intervention Centers 2011 to 695 at the end of FY-2012, a reduction of • Community At-Risk Services 130 FTE, with the closure of the L.E. Rader Center in • Juvenile Accountability Block Grants Sand Springs. • Santa Claus Commission For more information about OJA, visit their website. B-73 FY-2013 Executive Budget Labor Department (ODOL) December 2011, the agency had received 33 submissions. Commerce & Tourism Cabinet • Decreased the Wage & Hour case backlog by 40% and doubled the number of cases on the Historical Budget and FTE in $000's Wage & Hour Dockets under Commissioner $9,000 100.0 Costello's administration; $8,000 90.0 $7,000 80.0 70.0 • Implemented voluntary mediation parties to resolve their own disputes without the cost or $6,000 60.0 $5,000 50.0 delay of litigation; $4,000 40.0 $3,000 30.0 • Increased the number of Tax Warrant Intercept $2,000 20.0 $1,000 10.0 Program (TWIP) claims with the Oklahoma Tax $0 0.0 FY-2008 FY-2009 FY-2010 FY-2011 FY-2012 Appropriation $3,760 $3,760 $3,404 $3,166 $3,081 Total Budget $7,982 $7,886 $7,815 $7,546 $7,445 Commission from 29 to 110 at present, an FTE 95.2 93.9 92.2 87 84.6 approximate 400% increase; • Commissioner Costello reached out to the grain Mission elevator industry after the Kremlin grain The Oklahoma Department of Labor was created by elevator accident. As a result more than 14 the Oklahoma Constitution in 1907. The agency is grain elevator companies contacted the OSHA responsible for the enforcement of state and federal division to request an appointment with a Safety labor laws that promote fairness and equity in the Pays Consultant; and workforce, including state wage laws, workers' • A total of 855 consultation activities were compensation compliance, state OSHA laws for performed during 2011 with a total of 4,096 public employers, asbestos compliance, child labor safety and health hazards identified and laws and various other duties. eliminated from the workplace. This is a potential savings of $12,689,408 in OSHA Programs penalties to Oklahoma's private employers. • Asbestos Abatement • Regulation & Enforcement Goals for Upcoming Year • Statistical Research & Licensing • Continue Commissioner Costello's initiative to • Occupational Safety & Health combat workers' compensation fraud. • Focus on improvements in customer service, For more information about Department of Labor, including online license applications, renewals visit their website. and payments. FY-2012 Budget by Program Major Agency Projects • In order to recognize the spirit of private sector job creation, Commissioner Costello will develop 19% and Entrepreneurial Excellence in Oklahoma 22% Administration award. This award will recognize entrepreneurs 4% 10% Asbestos Abatement who have created profitable employment for Regulation & Enforcement Statistical Research & Lic their fellow Oklahomans. Occupational Safety & Health • A new youth employment law awareness video 45% contest - "Speak out for Workplace Safety" will launch January 23rd in Kay County. Middle Schools and High Schools will be invited to participate in this video contest with the goal to reach every county in Oklahoma. The purpose Accomplishments over Past Year of this contest is to give students the • Launched Slime Stoppers online at opportunity to educate the public about youth www.labor.ok.gov which provides Oklahoma employment laws designed to protect young taxpayers and workers the opportunity to report workers. employers for violating Worker's Compensation • The Oklahoma Department of Labor will launch Coverage requirements. As of the end of "Learning Labor" videos beginning February 1, 2012. Each video will be 1-2 minutes in length B-74 FY-2013 Executive Budget and designed to educate the viewer on "how to" at the Labor Department. The Labor Department's goal is to educate the Oklahoma Taxpayer on how to utilize the various programs and services the Labor Department has to offer. Savings, Efficiencies and Shared Services in FY-2012 • The Oklahoma Department of Labor has saved the taxpayers more than $415,000 during 2011 by streamlining the agency's processes and work efforts, improving financial procedures and increasing efficiencies; • Returned 7 leased vehicles that were not being fully utilized; • Purchase of 5 fuel-efficient, compact vehicles to replace leased mid-size vehicles, with an anticipated savings of more than $75,000 over the next 4 years; • Upgraded cell phones used by inspectors in the field to Blackberry devices, now using only one device for cell phone and internet connectivity. This has streamlined processes, provided inspectors easy access to files while in the field, and saving money for the agency and taxpayer. • OSHA Consultation now e-mails written reports to employers, resulting in savings of postage and paper, as well as requiring less space to store files. • Implemented the State Purchase Card (PCard) program in August 2011, decentralizing the small dollar purchases throughout the agency. This is saving money through improved control of supply inventory as well as better tracking and allocation of costs. • Returned to basic accounting standards and practices in both budgeting and financial payments, providing taxpayers a more accurate reporting of financial transactions. • It is projected that the agency's Office of General Counsel will save more than $5,000 over the next 3 years by switching to electronic legal resources, rather than bound hard copy volumes. • Reduced legal staff by 17%, saving the agency more than $57,000 annually. B-75 FY-2013 Executive Budget Land Office, Commissioners of the record $1,871,637,000 in FY-2011; • The agency achieved the highest percentage (CLO) growth in trust assets, the highest annual Finance and Revenue Cabinet royalty receipts, and the highest total appraised value of the land managed by the CLO in agency history; Historical Budget and FTE (in $000's) $45,000 56.0 • As security of funds is a major priority for the $40,000 55.0 CLO, there have been changes over the past $35,000 $30,000 54.0 year including fraud policy, conflict of interest $25,000 $20,000 53.0 policy, procedural oversight, security monitoring $15,000 52.0 and internal auditing. $10,000 51.0 $5,000 $- 50.0 FY-2008 FY-2009 FY-2010 FY-2011 FY-2012 Goals for Upcoming Year Appropriation $4,865 $4,865 $5,005 $7,109 $7,109 Total Budget $28,429 $36,561 $32,834 $38,590 $37,109 In FY-2011, the CLO began a multi-year technology FTE 55.7 55.1 52.5 55.5 53.8 upgrade designed to modernize the agency by using technology to improve areas such as records management, using a proprietary data base. In the Mission coming year, the data base and accompanying The Commissioners of the Land Office (CLO) was projects will include Geographic Information System created by the Enabling Act, which granted (GIS) tracking of surface and oil and gas leases, Oklahoma Statehood. Its governance is defined in constructing a proprietary electronic mineral auction the Oklahoma Constitution and the Statutes. The module (which has never been achieved by a state Land Office is, according to the Oklahoma Supreme public land agency), and developing electronic Court, a "sacred trust". The agency's singular receipt of payments by real estate and mineral mission is "managing assets to support education". lessees. There will be an emphasis on marketing and enhancing Land Office's commercial land as the Programs agency attempts to increase income from the • Real Estate Management acreage it manages. • Investment Management • Royalty Compliance Major Agency Projects • Minerals Management • Maintain and increase the value of Land Office agricultural and minerals to ensure their value For more information about CLO, visit their website. as a continuing trust for future generations is a priority to the Land Office in 2012; FY-2012 Budget by Program • Last year, the Land Office cleared more than 20,000 acres of red cedar. The eradication of red 7% and salt cedar to restore productive crop and 3% 5% Administration grazing land is a continuing project for the 4% Real Estate coming years. Financial • The agency's IT project is entering phase two Minerals 54% 27% Investment Fees which will included the scanning of historical Gas Purchasing records, GIS on trust mineral and surface locations, and upgrades to the website which will allow for electronic payments and royalty production reports. Accomplishments over Past Year • In FY-2011, the CLO distributed a record $124.17 Savings, Efficiencies and Shared Services in million to its common school, college and FY-2012 university beneficiaries: The agency's consolidation of investments and o The largest distribution, $93 million, was to accounting divisions has created savings in time and common schools. money. Voucher scanning will also decrease the • The value of the permanent trust grew to a work load, increase the speed of transactions, and B-76 FY-2013 Executive Budget improve the security of electronic systems. The Land Office is requiring higher education and certification standards in all divisions to improve professional standards. The ongoing IT upgrade allows for greater efficiencies and less duplication of work. Discussions with OSF for agency-wide IT consolidations are in progress. Further, the CLO utilizes shared services for telephone, payroll, fiber optics, voucher scanning, and data storage (in progress). B-77 FY-2013 Executive Budget Law Enforcement Education & • Trained 92.5% of peace officers in Evidence Based Sexual Assault. Training, Council on (CLEET) Safety and Security Cabinet Goals for Upcoming Year • Expand distance education program; Historical Budget and FTE • Implement online license application for private (in $000's) security licensures; $9,000 50.0 • Create new continuing education courses $8,000 $7,000 40.0 utilizing current staff; and $6,000 $5,000 30.0 • Implement modernization of records database $4,000 $3,000 20.0 as it is currently in a format that is no longer $2,000 10.0 $1,000 supported. $0 0.0 FY-2008 FY-2009 FY-2010 FY-2011 FY-2012 Appropriation $4,410 $4,614 $4,342 $3,918 $3,683 Total Budget $7,706 $7,627 $7,364 $6,439 $6,844 Major Agency Projects FTE 43.7 44.3 45.9 41.9 40.1 • Joint effort with the Department of Corrections to provide facilities for training corrections and Mission peace officers; The Council on Law Enforcement Education & • Expansion of credentialing program to include Training (CLEET) is to provide the citizens of other emergency management; and Oklahoma with peace officers who are trained to be • Expansion of Active Shooter program and professional, ethical, conscientious, and sensitive to instructor training. needs of the public, as well as knowledgeable and competent in identified learning objectives. In Savings, Efficiencies and Shared Services in addition, CLEET protects the public by regulating FY-2012 private security in the State of Oklahoma through CLEET reduced staff by not filling vacancies, delaying education and licensing requirements and ensures replacement of essential vacated positions and licensees practice within the provision of the law. reducing base pay for vacant positions. Additionally, CLEET has significantly reduced travel costs and Programs decreased the use of paid adjunct instructors in the • Training Services basic academy and continuing education programs. • Private Security Services CLEET has also returned two leased vehicles to the • CLEET Training Center Fleet Management division of the Department of Central Services. For more information about CLEET, visit their website. FY-2012 Budget by Program 57% Administrative Services Training Services Private Security Services CLEET Training Center 34% 4% 5% Accomplishments over Past Year • Kicked off Terrorism Certification Program; • Started Active Shooter (ALERRT) training for end users and trainer development; and B-78 FY-2013 Executive Budget Legislature State Senators serve four-year terms with half of the members elected every 2 years. Members of the House of Representatives, Legislative House of Representatives serve two-year terms. Service Bureau (LSB) and State Senate Each chamber of the Legislature considers four Historical Budget and FTE different types of legislation: (in $000's) $40,000 300.0 • Bills that will become law when passed by both $30,000 250.0 chambers and signed by the governor; 200.0 $20,000 150.0 • Joint Resolutions that have the effect of law if $10,000 100.0 passed by both chambers and signed by the 50.0 $0 0.0 governor but may not become part of the FY-2008 FY-2009 FY-2010 FY-2011 FY-2012 Appropriation $19,176 $19,176 $16,497 $15,342 $14,575 statutes; Total Budget $28,901 $25,847 $24,091 $24,471 $17,811 • Concurrent resolutions which express the will of FTE 279.7 282.3 277.3 251.8 213.9 both chambers; and House of Representatives • Simple resolutions, which express the will of the chamber of origin. Historical Budget and FTE (in $000's) In 1990, voters in Oklahoma decided to adopt term $12,000 30.0 25.0 limits for legislators. Therefore, legislators have a $8,000 20.0 12-year limit on service in the House of 15.0 $4,000 10.0 Representatives, the Senate, or both. 5.0 $0 0.0 FY-2008 FY-2009 FY-2010 FY-2011 FY-2012 For more information about the Legislature, visit: Appropriation $4,887 $5,537 $5,272 $4,903 $4,893 Total Budget $6,481 $8,693 $9,061 $9,401 $9,740 • House of Representatives website FTE 26.0 20.9 10.5 8.5 6.4 • Legislative Service Bureau website Legislative Service Bureau • Senate website Historical Budget and FTE (in $000's) $20,000 250.0 $15,000 200.0 150.0 $10,000 100.0 $5,000 50.0 $0 0.0 FY-2008 FY-2009 FY-2010 FY-2011 FY-2012 Appropriation $14,699 $14,699 $12,645 $11,760 $11,172 Total Budget $15,049 $15,495 $17,182 $15,050 $13,646 FTE 199.5 196.2 189.9 151.9 140.3 Senate The House of Representatives, Legislative Service Bureau (LSB) and the State Senate represent the legislative branch. The Oklahoma Legislature consists of 101 members in the House of Representatives and 48 members in the State Senate. They convene annually beginning on the first Monday in February, and adjourn on the last Friday in May. Normally, the Legislature is in session Monday through Thursday. Extra sessions may be called by the governor or by the Legislature. B-79 FY-2013 Executive Budget Libraries, Oklahoma Department of State Finance and Oklahoma Department of Libraries; (Libraries) o Online Historical documents and state Education Cabinet government publications available from Oklahoma Department of Libraries had a 20% increase in usage. Historical Budget and FTE (in $000's) • Reading proficiency for Oklahoma children and $14,000 70.0 $12,000 60.0 teens strengthened: $10,000 50.0 o Summer reading program partnership with $8,000 40.0 public libraries reached 30% of eligible $6,000 30.0 $4,000 20.0 children, up 4% from previous year; $2,000 10.0 o 96% increase in number of summer library $- FY-2008 FY-2009 FY-2010 FY-2011 FY-2012 0.0 programs for children; Appropriation $7,295 $7,295 $6,747 $6,343 $5,899 o Increase of 35% in program attendance at Total Budget $11,670 $11,512 $11,800 $11,776 $12,941 FTE 59.1 56.4 55.8 51.5 47.9 library programs for children. • Provide online access to customers of public libraries in non-metropolitan areas: Mission o Public library websites in 28+ communities The Oklahoma Department of Libraries serves the are supported by Oklahoma Department of citizens of Oklahoma by providing excellent Libraries allowing library customers to information services and preserving unique access a monthly average of 300,000 web government information resources. pages per month on these sites; o Oklahoma Department of Libraries Programs increased the number of electronic books of For more information about the Department of a consortium of public libraries in non- Libraries, visit their website. metropolitan areas by 133%. FY-2012 Budget by Program Goals for Upcoming Year • Complete installation of higher internet connections and video conferencing equipment 12% 12% in 37 Oklahoma communities to allow library Administration customers access to online classes, virtual job Services to Libraries fairs, skills coaching by Workforce Development Government Information staff at Oklahoma Department of Commerce, Services continuing professional development, etc.; 76% • Increase state government information available online through partnership with the Office of State Finance to meet mandates of having all state agency documents available and Accomplishments over Past Year searchable in one site. • Increase awareness and use of electronic information sources to support Oklahomans in education, economic and personal Major Agency Projects development: • Oklahoma Department of Libraries received a o Use of the statewide licensed electronic grant from the National Telecommunications resources by library customers increased and Information Administration for the video 47% from approximately 21 million conferencing project. Seven libraries are searches to more than 39.5 million; completed and the remaining 37 are in process. o Provided hands-on instruction on these This project uses a mix of federal and private resources to 310 librarians, a 100% increase funding to achieve the goal. Once the Internet over previous year; connections and equipment are installed, the o 60% increase in searches to state communities will be responsible for maintaining government web sites through search the costs associated with the project. engine that is partnership between Office of B-80 FY-2013 Executive Budget • Oklahoma Department of Libraries purchased an unlimited license for software designed to make state government information and historical content available online. When the Office of State Finance was mandated to create a single site for this purpose, Libraries approached OSF to ensure awareness of this software and offered to partner in the implementation for this project. The software will be utilized at no additional cost to the state. Savings, Efficiencies and Shared Services in FY-2012 In order to meet budget reductions, Oklahoma Department of Libraries froze personnel positions when vacancies occurred and decreased the purchasing of library materials. Libraries administrative staff met with IT sector staff to be apprised of the timeline and process for the IT consolidation on February 1, 2012. B-81 FY-2013 Executive Budget Lieutenant Governor Historical Budget and FTE (in $000's) $800 9.0 8.0 $600 7.0 6.0 $400 5.0 4.0 3.0 $200 2.0 1.0 $0 0.0 FY-2008 FY-2009 FY-2010 FY-2011 FY-2012 Appropriation $693 $660 $567 $528 $507 Total Budget $568 $668 $630 $600 $558 FTE 7.2 8.3 7.7 7.2 4.9 Oklahoma's Lieutenant Governor serves in place of the Governor when the Governor leaves the state, and serves on the Governor's cabinet as Small Business Advocate. Also, the Lieutenant Governor serves as the President of the Oklahoma State Senate, casting a vote in the event of a tie and presiding over joint sessions of the State Legislature. In addition, the Lieutenant Governor presides over or is a member of the following nine (9) state boards and commissions: • Chairman, Oklahoma Tourism and Recreation Commission; • Native American Cultural and Educational Authority; • State Board of Equalization; • Oklahoma Capitol Improvement Authority; • Oklahoma Archives and Records Commission; • Oklahoma Film and Music Advisory Commission; • CompSource Oklahoma Board of Managers; • Commissioners of the Land Office (School Land Trust); and • Oklahoma Linked Deposit Review Board As President of the State Senate the Lt. Governor's office utilizes the State Senate for IT services. The Lt. Governor's office utilizes the Office of State Finance for all shared services. For more information, visit the Lieutenant Governor's website. Savings, Efficiencies and Shared Services in FY-2012 • Reduction in level of full-time employees. B-82 FY-2013 Executive Budget Medical Examiner, Office of the • Re-engaged in the graduate medical education for forensic pathology fellows; Chief (OCME) • Explored other cost-saving measures such as Safety and Security Cabinet rural investigator redistricting and changing the vehicle fleet to more economical cars; Historical Budget and FTE • Engaged fully in the electronic death certificate (in $000's) system (ROVER); and $8,000 80.0 • Formulated a plan for regaining accreditation $7,000 $6,000 70.0 60.0 from the National Association of Medical $5,000 $4,000 50.0 40.0 Examiners (NAME). $3,000 30.0 $2,000 20.0 $1,000 10.0 $0 FY-2008 FY-2009 FY-2010 FY-2011 FY-2012 0.0 Goals for Upcoming Year Appropriation $4,826 $4,826 $4,347 $4,794 $4,698 • Continue streamlining the agency operations Total Budget FTE $6,528 70.6 $7,417 70.2 $7,374 75.4 $6,918 73.2 $6,396 66.3 with minor technology improvements and continue to author policy and procedure; • Train a new fellow in OKC; Mission • Begin the process of recruiting 4 forensic The mission of the Office of the Chief Medical pathologists and related support staff to bring Examiner (OCME) is to protect the public health and service levels up to national standards; safety of Oklahomans through the scientific • Repair broken and obsolete equipment; and investigation of deaths as defined by state statutes. • Continue planning for eventual NAME This process involves scene investigation and reaccreditation. medicolegal autopsy (including radiology, toxicology, histology and microbiology), complementing the activities of law enforcement agencies, district Major Agency Projects attorneys and public health officials. • Reducing backlog; • Achieving full National Incident Management System (NIMS) compliance; Programs • Engaging fully in electronic death certificate • Investigations process; and • Improving rural district investigator coverage. For information about OCME, visit their website. Savings, Efficiencies and Shared Services in FY-2012 Budget by Program FY-2012 • Combined 4 administrative positions into one FTE, saving approximately $174,000 per year plus benefits; 79% 21% Administration • Changed vehicle fleet to more economical cars, Investigations avoiding a $69,000 increase in costs; • Improved accounting process to better capture monies owed; • The CME, CAO and Investigative Supervisor (OKC) declined scheduled or posted salary increases for 2011; Accomplishments over Past Year • Better utilization of the p-card to maximize • The OCME has eliminated the old backlog; rebates; • Created (and enforced) new policies and • OSF – IT services are currently used; procedures whereas virtually none had existed • OSF –Accounting; and before; • The agency anticipates using shared services for • Reduced administrative costs by combining 4 human resources in the near future. FTE into 1 FTE; • Re-established a physician presence on the boards served; B-83 FY-2013 Executive Budget Mental Health and Substance Abuse FY-2012 Budget by Program Services, Department of (ODMHSAS) 17% Central Administration Health & Human Services Cabinet Inpatient Hospital 4% 3% Community-based Programs 50% Historical Budget and FTE 1% Substance Abuse Programs $350,000 (in $000's) 2,400.0 Residential Care Programs $300,000 2,000.0 25% Operated Medicaid Match $250,000 1,600.0 $200,000 1,200.0 $150,000 Accomplishments over Past Year 800.0 $100,000 • The ODMHSAS performed a cost/benefit review $50,000 400.0 of community mental health service areas. As a $0 0.0 result of the review, the ODMHSAS successfully FY-2008 FY-2009 FY-2010 FY-2011 FY-2012 Appropriation $207,529 $209,579 $184,939 $183,635 $183,113 bid services in the Eastern Oklahoma area and Total Budget $307,935 $323,212 $319,695 $314,331 $294,154 replaced a state operated facility with a private FTE 1,919.9 2,195.0 1,895.2 1,773.4 1,714.5 contractor that provided services to more consumers at a better cost to Oklahoma Mission taxpayers. The mission of the Oklahoma Department of Mental • Introduced a new certification for substance Health and Substance Abuse Services is to promote abuse treatment facilities resulting in healthy communities and provide the highest quality Oklahomans who have both a mental health and care to enhance the well-being of all Oklahomans. substance abuse disorder receiving a more medically appropriate and comprehensive mix Programs of services which is expected to improve The ODMHSAS is charged with the treatment and outcomes including reducing relapse; prevention of mental illness and substance abuse • Improved performance outcomes for and addiction. The ODMHSAS pursues these community mental health centers using pay for objectives in partnership with a network of providers performance to fuel process improvement. This spread throughout the state. ODMHSAS's provides Oklahoma effort has recently been recognized a and administers the following programs: model for all other states to consider. This • Inpatient psychiatric hospitals such as Griffin initiative has reduced wait times for Memorial and the Oklahoma Forensic Center; appointments, decreased substance abuse and • Community based programs offered through reduced the number of hospitalizations for Community Mental Health Centers and Oklahomans served. featuring programs such as PACT, Systems of • ODMHSAS, through collaboration with the Care, Crisis Services; Tobacco Settlement Endowment Trust and • Substance Abuse Programs including outpatient Alcohol Beverage Laws Enforcement and residential substance abuse programs, drug Commission, has significantly reduced illegal courts, gambling treatment, regional prevention tobacco sales to minors, moving the violation centers, underage drinking initiatives and Synar rate from 17.9 % in 2008 to 6.8% in 2011. If (Illegal Tobacco Sales to minors); and violation rates hit 20%, the state would be at • Residential Care to provide safe housing for risk of losing millions in substance abuse consumers. treatment money from the federal government as part of required compliance with the federal For more information about ODMHSAS, visit their Synar Amendment. website. Goals for Upcoming Year • Improve the healthcare status of consumers served by the ODMHSAS. People living with mental illness and addiction die 25 years earlier than the rest of the population. The ODMHSAS B-84 FY-2013 Executive Budget treatment network is working on addressing enforcement - An ODMHSAS pilot project in whole health including reducing tobacco use Oklahoma County is looking to add and expand and obesity to change this intolerable and an "urgent care" model of service. Throughout unacceptable statistic. the nation, the current and most common after • Reduce underage alcohol consumption. Alcohol hours model of emergency psychiatric services continues to be the leading substance of choice consists of law enforcement bringing a person for Oklahomans and research clearly indicates for a determination of whether or not a person that access to alcohol is starting at younger in need meets strict criteria for inpatient ages. The younger someone begins admission. If not, they are often turned away, to experimenting with alcohol the higher the risk the frustration of law enforcement, to wait for of developing addictive behaviors and creating an outpatient appointment at best the next day. accidents and other societal costs. Working with ODMHSAS's goal is to extend those services so local communities, the ODMHSAS will partner that a person in crisis, but just outside the with law enforcement to increase compliance criteria for inpatient admission, will have access checks and to enforce the newly enacted to a psychiatric evaluation, counseling services, statewide social host ordinance. Additionally, case management services and medications ODMHSAS, in partnership with Superintendent when needed with follow up services until a Barresi and with support from the Office of linkage can be made for the individual within Governor Mary Fallin, is actively recruiting the traditional system. This model will provide Oklahoma high schools to incorporate ready access to lower levels of care, thus AlcoholEdu (an online alcohol prevention diverting many individuals from costly inpatient program) into their curriculums. admissions and/or involvement with the • Increase third party revenue in ODMHSAS criminal justice system. operated facilities. Though only a fraction of the • Implementation of an optional certification for services provided by the ODMHSAS are through outpatient mental health provider organizations state-operated facilities, these organizations can - Pending future rules approval, providers will seek third-party reimbursement for eligible have a choice of national or state certification, patients. By successfully collecting these resulting in savings for providers of thousands of reimbursements, the agency can serve more dollars per certification. Oklahomans, reducing the waiting lists for services and stretching appropriated dollars Savings, Efficiencies and Shared Services in further. FY-2012 • Agency administrative infrastructure flattened Major Agency Projects by nearly 10%, including shrinking the agency • Implementation of the first phase of the leadership team from five to four; ODMHSAS Smart on Crime programs, which • Electronic workflow facilitation (e-92's; e- were funded through the leadership of contracts) - An example of the efficiency Governor Fallin as part of the FY-2012 budget achieved in this area is the time from contract agreement - This included two programs: 1) initiation to execution changing from using the creating 24/7 mental health emergency paper/mail model to using electronic responders and services to assist law transmission and e-signature, saving over 50 enforcement in Oklahoma County with mental days per contract. This is an improvement health calls and 2) increasing the number of experienced not only by ODMHSAS but also by women receiving addiction treatment to over 100 private providers doing business with prevent incarceration including an innovative ODMHSAS. initiative in Lawton that diverts women who • Consolidated claims processing system allows have come in contact with law enforcement into ODMHSAS to assure, in partnership with OHCA, a comprehensive treatment program that is that a third-party payer, then Medicaid dollars targeted to the needs of women with addiction are utilized when serving a consumer before and mental illness. indigent funding (100% state dollars) are • Obtain broader distribution and number of accessed. community based crisis services/beds to serve • Full implementation of the ODMHSAS Oklahoma consumers and reduce burden on law telemedicine program, the nation's most B-85 FY-2013 Executive Budget comprehensive behavioral health telemedicine network, stretching ODMHSAS's urban based providers to rural parts of Oklahoma - In the Ardmore service region alone, telemedicine extended services to an additional 1,200 Oklahomans in one year. Statewide $1.77 million in travel costs and time was averted. ODMHSAS, in the early stages of this effort, received the "Rural Promising Practice Award" by the Western Interstate Council on Higher Education (WICHE). • Improved purchasing of workers compensation insurance which saved 14% of ODMHSAS's premium – This savings was utilized to cover a portion of ODMHSAS budget cuts. Rather than purchasing through CompSource, the agency utilized recently passed legislation allowing state agencies to bid a workers' compensation package and receive a better quote from a different carrier. ODMHSAS was the first agency to utilize this newly created flexibility. B-86 FY-2013 Executive Budget Merit Protection Commission reduce travel time and training costs. Human Resources and Administration Savings, Efficiencies and Shared Services in Cabinet FY-2012 The agency saved approximately $49,000 in hearings Historical Budget and FTE costs, based upon cases settled through the (in $000's) Alternative Dispute Resolution Program. $800 8.0 $600 6.0 $400 4.0 $200 2.0 $0 0.0 FY-2008 FY-2009 FY-2010 FY-2011 FY-2012 Appropriation $649 $614 $568 $528 $491 Total Budget $697 $657 $563 $570 $529 FTE 7.5 7.4 6.2 6.2 5.8 Mission The Oklahoma Merit Protection Commission is an independent quasi-judicial agency established to protect the integrity of the state's merit system, utilized by state agencies and their employees. The agency designs and implements a dispute resolution system to protect the integrity of the merit system for state employees through hearings, investigations and an Alternative Dispute Resolution program in conjunction with training and consultation. Programs For more information about the Merit Protection Commission, visit their website. Accomplishments over Past Year During the 2011 fiscal year, 276 cases were closed. Twelve training sessions were conducted in the following areas: progressive discipline, investigations, and grievances. The Merit Protection Commission conducted a one day conference in collaboration with the Office of Disability Concerns. The conference provided an update on new federal guidelines dealing with the Americans with Disability Act. Goals for Upcoming Year and Major Agency Projects To expand the use of courtroom media site technology to offer increased learning opportunities for employees in remote areas of the state, by developing a video E-Learning program. This would reduce the amount of time the instructor and trainees spend away from their job duties and B-87 FY-2013 Executive Budget Military Department (OMD) Accomplishments over Past Year Military Affairs Cabinet • OKNG sent more soldiers and airmen, per capita, than any state since September 11, 2011 and is currently in Afghanistan with the largest Historical Budget and FTE deployment since the Korean War; (in $000's) $240,000 400.0 • OKNG helicopter crews have dropped over 6 $220,000 million gallons of water in support of OEM 350.0 $200,000 directed wildfire suppression since October 1, $180,000 300.0 2010; $160,000 $140,000 250.0 • The "Tulsa Vipers" deployed F -16s from the $120,000 200.0 138th Fighter Wing providing over-watch in $100,000 150.0 support of the withdraw of U.S. forces in Iraq; $80,000 $60,000 100.0 and $40,000 • The Thunderbird Youth Academy aided over 200 50.0 $20,000 high school dropouts in becoming productive $0 FY-2008 FY-2009 FY-2010 FY-2011 FY-2012 0.0 Oklahomans in 2011. Appropriation $13,655 $13,132 $11,333 $10,787 $10,248 Total Budget $106,018 $233,367 $144,443 $129,758 $74,169 FTE 313.4 365.0 371.3 341.6 348.1 Goals for Upcoming Year • Appropriately resource, build and maintain Mission adequate and safe training facilities for the The Oklahoma Military Department's (OMD) mission members and youth programs of the OKNG to is to preserve the state and the nation by providing insure enduring mission success; public safety and supporting the preservation of • Improve and modernize the legacy facilities rights afforded to all citizens of our state and nation (a/k/a armories) across the State. through the organization and training of the Oklahoma National Guard (OKNG). OMD supports Major Agency Projects the administration and funding of critical missions, Land acquisition is step one in the process for training and facilities in order to provide trained and Military (MILCON) projects. Additionally, an ready forces when called into service by the extensive master plan has been developed to phase Governor or the President of the United States. the construction of the Thunderbird Youth Academy without suspending operations of the almost $4 Programs million per year program to assist high school • Support Services dropouts return to school or enter the workforce • Armory Maintenance and avoid entering the juvenile justice system. • Museum Management • Youth Programs Savings, Efficiencies and Shared Services in • Federal Programs FY-2012 • Facility Maintenance and Repair • OKNG has taken advantage of the voluntary • Construction buyout program to retire state employees as well as continue to do "more with less" with For more information about OMD, visit their regard to personnel numbers; website. • OKNG maintains its own financial accounting, human resources and maintenance department FY-2012 Budget by Program that provide services to agency employees and 9% Administration facilities. 34% Support Services Armory Maintenance 25% Museum Management Youth Programs Federal Programs 1% 6% Facility Maintenance & Repair 0% Construction 17% 8% B-88 FY-2013 Executive Budget Mines, Oklahoma Department of Accomplishments over Past Year • The general public, landowners, students and (ODM) industry have benefited from the increased Energy Cabinet availability and access to information on the agency website concerning coal and mineral Historical Budget and FTE mining and reclamation in Oklahoma. Permit (in $000's) application forms and production reporting $4,000 40.0 forms are on-line. $3,500 35.0 $3,000 30.0 • New regulations concerning coal combustion by- $2,500 25.0 product beneficial use and reclamation have $2,000 20.0 been enacted. The increased requirements for $1,500 15.0 effluent and groundwater sampling and analysis $1,000 10.0 will help protect the environment and provide $500 5.0 timely information for industry and the agency $0 FY-2008 FY-2009 FY-2010 FY-2011 FY-2012 0.0 in tailoring permits and reclamation plans. Appropriation Total Budget $1,014 $3,197 $1,014 $3,383 $872 $3,123 $811 $3,102 $779 $3,051 • The Department of Mines, in cooperation with FTE 35.1 34.3 33.7 31.9 30.6 the Water Resources Board, citizens and industry, held meetings to draft and implement Mission Senate Bill 597, which set standards for The mission of the Oklahoma Department of Mines permitting non-coal mining operations within (ODM) is to protect the environment of the state, to sole source aquifers. protect the health and safety of the miners and to protect the life, health, and property of the citizens Goals for Upcoming Year who are affected through enforcement of the state The agency acquired a large format map scanner mining and reclamation laws. from the federal Office of Surface Mining Reclamation and Enforcement. The agency will use Programs the scanner to preserve mine maps. The agency is • Coal Programs required to keep the originals of all underground • NonCoal (Minerals) Programs mining maps. The scanner will allow ODM to make o Coal Combustion Byproducts (Fly Ash) those maps, as well as current surface and o Non-Mining Blasting Compliance underground mining maps, available to the public • Post-Mining Reclamation through ODM's website. The maps provide a historical record of the activity of underground • Permitting mining in the state. Once the maps are online, the o Performance Bonding public can access the information to determine site • Inspections location and in some instances to determine the • Legal Enforcement safety of a location that was mined underground. • Oklahoma Miner Training Institute For more information about ODM, visit their Major Agency Projects website. • The Department continues to work with the industry and citizens on rules to implement SB 597. ODM, in cooperation with the Water FY-2012 Budget by Program Resources Board, has formed a technical committee to assist in implementation of 9% permitting standards for mining permits on Administration 19% hydrological issues. Coal Programs • ODM Legal is also involved in working with 28% counsel of the OWRB to draft proposed Noncoal Programs regulations enforcing SB 597, enacted by the Oklahoma Miner Oklahoma Legislature in 2011. These 44% Training regulations pertain to the protection of the Arbuckle-Simpson Aquifer. B-89 FY-2013 Executive Budget • ODM's Legal Division is also currently involved with the Attorney General's office in litigation with the ederal government in US District Court for the Eastern District of Oklahoma, concerning the issue of the federal government usurping state primacy of the surface coal mining program. In addition, the litigation challenges the federal agency's attempt to impose policies and procedures they have enacted without going through the legal rulemaking process, as required under the Federal Administrative Procedures Act. This has potential national ramifications for state mining programs. Savings, Efficiencies and Shared Services in FY-2012 • Reduced inspection frequency has allowed the ODM to achieve the required mandated inspections without replacing inspector vacancies. The Department retired two vehicles leased by Central Services at a substantial savings. Used vehicles were purchased to realize savings. Shared vehicle usage has been implemented in order to reduce operating costs. • The agency is now utilizing the "shared services" of the Office of State Finance (OSF) for payroll processing. With the elimination of the Human Resource Management Specialist FTE, the result is the reallocation of other duties to existing ODM staff. B-90 FY-2013 Executive Budget Narcotics & Dangerous Drugs Accomplishments over Past Year • Arrested a total of 698 violators of state and Control, Oklahoma Bureau of federal drug laws; (OBNDD) • Seized cash totaling $126,308, 76 vehicles and Safety and Security Cabinet 79 weapons related to drug activities; • The Marijuana Eradication Program facilitated 26 marijuana related arrests, destroyed and/or Historical Budget and FTE seized 47,521 outdoor cultivated plants and 542 (in $000's) indoor plants and seized 16 firearms; $25,000 140.0 $20,000 120.0 • The Mobile Operations Team (MOT) assisted 15 100.0 $15,000 80.0 other law enforcement agencies in narcotics $10,000 60.0 40.0 investigations, made 37 arrests, opened 40 $5,000 $0 20.0 0.0 cases, served 51 search/arrest warrants and FY-2008 FY-2009 FY-2010 FY-2011 FY-2012 performed 2 community and law enforcement Appropriation $6,774 $6,774 $5,928 $5,466 $3,616 Total Budget $13,400 $16,031 $15,674 $21,763 $20,270 presentations; FTE 109.3 118.8 117.4 114.6 115.6 • Performed 4 wire taps of Mexican cell groups and other major narcotics distributors and Mission seized 915 lbs. of drugs and 17 vehicles; Committed to honor, integrity, and excellence, the • Developed and implemented the nation's first Oklahoma Bureau of Narcotics (OBNDD) serves the state-wide permanent Drug Disposal Program; citizens of Oklahoma in the quest for a drug free and state. OBNDD is a small, efficient agency that is a • The Prescription Monitoring Program (PMP) st national model for addressing emerging drug went to real-time starting January 1 2012, threats. OBNDD maintains an aggressive and updating the nation's first Meth Offender proactive approach toward reducing the local Registry to block illegal sales of meth availability of drugs and addressing the ever- ingredients. changing climate of narcotics distribution and abuse. Goals for Upcoming Year Programs • Working to investigate crimes involving human • Enforcement trafficking; • Electronic, Surveillance and Intelligence • Creating a nationally recognized and sanctioned • Diversion Oklahoma Chapter of Drug Endangered • Information Systems Children's program; • Education Training • Start the second part of "Safe Trip for Scripts" • Mobile Operations Team (MOT) drug prevention program which is to provide home safes to Oklahoma citizens on fixed For more information about OBNDD, visit their incomes, which have to possess and use website. pharmaceutical controlled substances for legitimate medical reasons; • Initiate a state wide pharmaceutical task force FY-2012 Budget by Program to address the fraud, diversion and abuse of 15% 10% Administrative Services pharmaceuticals; and 2% Enforcement • In November 2011, the Oklahoma Bureau of Electronic, Surveillance & Narcotics launched their Reserve Agent program 9% Int and received numerous applications from Diversion Oklahoma citizens. Reserve agents will serve in a 8% Information Systems volunteer status at no cost to the agency in 45% support of Bureau operations. 11% Education/Training B-91 FY-2013 Executive Budget Major Agency Projects • Update and refresh the technology backbone in support of the Prescription Monitoring Program (PMP) and Pseudoephedrine Tracking (PSE) programs; • Continue identifying members of the Sinaloa Drug Trafficking Organizations operating in Oklahoma; • Drug Endangered Children's Program; • Human trafficking; • Take Back Program; and • Safe Trip for Scripts. B-92 FY-2013 Executive Budget Native American Cultural & funds will establish a definitive timeline for the completion of the project, which will in turn Education Authority of Oklahoma become an integral aspect of establishing the (NACEA) timeline for commercial development initiatives Commerce & Tourism Cabinet that need to align with the completion of the Center. NACEA 10-YEAR APPROPRIATION HISTORY (In Millions) Major Agency Projects $8,000,000 • The sole project is the completion of The $7.1 $7,000,000 $6.8 $6.8 American Indian Cultural Center and Museum, $6,000,000 located at the intersection of I-40 and I-35. $5,000,000 $3.9 $3.9 Accompanying this project is a commercial $4,000,000 development project utilizing approximately 20 $3,000,000 $2,000,000 $1.4 acres of land adjacent to the project to tie in to $1,000,000 $0.8 $0.8 $0.5 $0.7 $0.8 the experience of the Center. The goal is to $0 have both The Center and the commercial project completed concurrently. Savings, Efficiencies and Shared Services in Mission To create an awareness and understanding for all FY-2012 people about Oklahoma American Indian cultures, • NACEA's primary focus has been to ramp up the past and present. This mission is to be realized institutional development to parallel the through the creation, completion and operation of construction completion of the Center. In doing The American Indian Cultural Center and Museum such, the agency has been operating at minimal which is currently mid-way through construction. levels. NACEA Funding Sources (In Millions) Centennial Grant, Tribal, $4.7, 6% $2.0, 2% City of OKC, $0.6, Federal, $16.3, 1% 19% State, $61.3, 72% Programs For more information about NACEA visit their website. Accomplishments over Past Year • Construction of The American Indian Cultural Center and Museum has continued without demobilizing the General Contractor from the site. Goals for Upcoming Year • The primary goal is to identify and secure the private and public funds necessary to complete the construction of the Center. Securing these B-93 FY-2013 Executive Budget Oklahoma Center for the FY-2012 Budget by Program Advancement of Science and 2% Technology (OCAST) Science and Technology Cabinet 34% Administration Programs 45% Seed Capital Historical Budget and FTE (in $000's) EDGE Funded Programs $50,000 30.0 19% $45,000 $40,000 25.0 $35,000 20.0 $30,000 $25,000 15.0 $20,000 $15,000 $10,000 10.0 Accomplishments over Past Year 5.0 $5,000 $- 0.0 OCAST sets and annually measures its impact on FY-2008 FY-2009 FY-2010 FY-2011 FY-2012 Oklahoma's economy. The following are a few Appropriation $22,457 $22,457 $20,375 $19,152 $17,811 Total Budget $27,323 $41,062 $40,890 $45,030 $40,903 highlights from the OCAST 2012 Impact Report to FTE 23.3 23.9 22.2 18.4 15.3 stakeholders: • For every $1 the state invests in OCAST, $20.39 is returned to Oklahoma's economy; Mission • 1,549 Jobs created or retained by OCAST- OCAST has the mission to foster innovation in supported organizations; existing and developing Oklahoma businesses by: supporting basic and applied research, facilitating • $62,953 average salary; technology transfer between research laboratories, • 88 inventors assisted; firms and farms, providing seed capital for new • $16.5 million awarded to 54 projects; innovative firms and their products or services, and • 2,312 projects awarded since 1987; fostering enhanced competitiveness of Oklahoma • $4.3 billion cumulative financial impact since companies and small to medium-sized 1987. manufacturing firms. Goals for Upcoming Year Programs • Consistent with its mission as the state's • Programming: technology-based economic development o Oklahoma Health Research (OHR) agency focusing on technology, development, o Oklahoma Applied Research Support (OARS) transfer and commercialization, OCAST o Plant Science Research (PSR) overarching goal is to advance Oklahoma in the o OK Nanotechnology Applications Project innovation economy. o Small Business Research Assistance (SBRA) • Enhance the value and efficiency of the state's o Oklahoma Inventors Assistance Service (IAS) investment in OCAST by delivering: o Technology Commercialization o Optimal results through disciplined o Oklahoma Industrial Extension System strategic investment in applied and basic • Seed Capital research; • EDGE Funded Programs o Innovation capital; o Manufacturing and small business support; For more information about OCAST, visit their o Innovative new programs that meet client website. needs and help advance the state in the knowledge and innovation-based economy; o Increase public/private collaborations to accelerate the commercialization of research that leads to an improved quality of life and standard of living for the citizens of Oklahoma. B-94 FY-2013 Executive Budget Savings, Efficiencies and Shared Services in FY-2012 • OCAST continued to refine its business model and operations by implementing productivity and efficiency improvements that contribute to the agency's continuing recognition as a national model for technology-based economic development. • The agency implemented improvements in its database integration, archiving and electronic applications-submittal processes resulting in cost savings while allowing for more efficiency and responsiveness in meeting client and stakeholder needs. • OCAST achieved cost efficiency savings of $523,730—primarily associated with agency reorganization, staff reductions, and moving information technology (IT) support to OSF. Additional efficiencies were realized through updating the agency's time and leave process, voucher scanning and copying, and by transferring to a digital application process. • The following is a breakdown of savings: o Staff reductions $350,000; o IT consolidation $125,000; o Sponsorship $ 18,000; o Time and Leave $ 12,000; o Travel $ 5,000; o Copying $ 5,200; o Phones $ 1,080; o Mail $ 2,200; o Application process $ 1,250. B-95 FY-2013 Executive Budget Oklahoma Educational Television • Awarded numerous recognitions from state, regional and national organizations for its Authority (OETA) efficiency and impact on citizens of Education Cabinet Oklahoma; • More than doubled the number of viewers for the Oklahoma News Report (ONR), which Historical Budget and FTE (in $000's) was moved from a week-nightly production $16,000 80.0 $14,000 70.0 to an hour-long program on Friday evenings; $12,000 $10,000 60.0 50.0 • Launched an OETA iPhone application $8,000 40.0 through PBS for up-to-the-minute $6,000 30.0 $4,000 20.0 information about programs aired on The $2,000 10.0 Oklahoma Network; $- 0.0 FY-2008 FY-2009 FY-2010 FY-2011 FY-2012 • Increased number of Oklahoma schools Appropriation $8,394 $8,394 $4,468 $4,200 $3,822 Total Budget participating in OETA's "Colonial $13,391 $13,775 $7,468 $7,359 $5,209 FTE 71.2 73.0 71.5 65.1 59.3 Williamsburg" electronic television field trips to 112 schools, serving thousands of Oklahoma students; Mission • Helped produce the Antiques Roadshow visit OETA's mission is to provide educational and public to Tulsa with more than 6,000 people in television programming to the people of Oklahoma attendance. This program spotlighted the through creative use of telecommunications most valuable collection ever discovered in technologies. OETA delivers educational and public the 15 years the program has been produced. television programs on a statewide basis and • Signed on to the air a new translator station provides value-added services to enrich in Grandfield, Oklahoma, increasing the reach Oklahomans' access to coverage of state of OETA to thousands of additional viewers in government. Southwest Oklahoma and North Texas; • Opened a new state-of-the-art television Programs facility on the OSU-Tulsa campus to better • Programming serve the citizens of Northeast Oklahoma and • Technical Services provide training for college students: o Elected officials, business leaders and For more information about OETA, visit their industry experts who are featured on OETA website. programs are now able to be interviewed with their messages sent across the state FY-2012 Budget by Program from the Tulsa studio. This has been a mutually beneficial cooperative effort with Oklahoma State University and the OneNet 8% communication system. Administration Programming Goals for Upcoming Year 53% 39% Technical Services • OETA will implement a statewide teacher professional development training program through the guidance of the State Department of Education. This program will include resources of PBS Learning Media and PBS Teacher Line. OETA's productions library will be Accomplishments over Past Year correlated with state standards and will be • Continued to be the only television operation made available through iTunes U. -- either commercial or non-commercial -- • OETA will seek to expand its broadcast signal serving the entire state of Oklahoma and the distribution into the few areas of the state only broadcast television signal for many currently unable to receive the off-air signal. rural Oklahomans; This includes citizens who reside in the more B-96 FY-2013 Executive Budget mountainous regions in South-Central and associated with addiction, but the proven Eastern Oklahoma. successes of intervention. • OETA will work with satellite service providers such as DISH and DirecTV to assure that all Savings, Efficiencies and Shared Services in Oklahomans can receive OETA. Seven out-of- FY-2012 state television market areas overlap Oklahoma • OETA has eliminated several staff positions and citizens who reside in the markets of Amarillo, reassigned duties to other staff members. Cross- Joplin, Fort Smith, Sherman-Denison, among training of employees has helped move essential others, have been denied the OETA signal by staff into areas other than their original job FCC regulation. A new federal law will now allow function in order to cover essential services. these citizens to request their own state's • OETA will be transferring its accounts payable, educational, non-commercial statewide purchasing and payroll functions to the Office of television signal and OETA will aggressively seek State Finance, effective July 1, 2012. to gain this service for Oklahomans. • OETA works closely with other agencies such as the Oklahoma Regents for Higher Education and Major Agency Projects its OneNet service. OETA also cooperates with • OETA continues to grow its private funding the Wildlife Department, Oklahoma Department match for state appropriations. From an agency of Transportation and various law enforcement that was 100-percent funded by the state in its agencies to maximize coverage of state formation, OETA now covers more than 60 communication services. percent of its operating cost with non-state dollars. • OETA is operating a user-friendly, interactive website with full video for every OETA production, allowing 24-hour, on-demand access for Oklahoma citizens and the national audience; • OETA leverages its news gathering team through multiple partnerships to capitalize on statewide media projects; • OETA works with other news organizations such as eCapitol and The Journal Record to gather and disseminate information about the legislative process and free enterprise in Oklahoma; • OETA in consortium with the four Oklahoma NPR stations produces "State Impact Oklahoma," an in-depth coverage of important Oklahoma news stories. Topics for possible coverage in 2012 include Oklahoma's ability to continue its economic growth despite a national economic stagnation. • OETA has been instrumental in the formation of "Oklahoma Watch" and will continue to implement positive changes in state journalism efforts. This newly formed organization also includes the Oklahoma Press Association, the Tulsa World, The Oklahoman, several NPR radio stations, and the University of Oklahoma. For 2012, OETA and Oklahoma Watch will concentrate on the impact of addiction in the state by not only reporting on the problems B-97 FY-2013 Executive Budget Oklahoma School of Science & Accomplishments over Past Year • OSSM graduated its 20th class and maintained Mathematics (OSSM) the operations of seventeen regional outreach Education Cabinet center locations; • The outreach program benefited 973 teachers Historical Budget and FTE (in $000's) and 825 students across the state; $12,000 90.0 • OSSM's regional centers graduated 210 $10,000 80.0 70.0 students. Of these students, 77% took the AP $8,000 60.0 exam with 76% scoring a 3 or higher. 50.0 $6,000 40.0 $4,000 30.0 20.0 Some of the achievements accomplished by the $2,000 $- 10.0 0.0 graduating class at the main campus: FY-2008 FY-2009 FY-2010 FY-2011 FY-2012 • An increase in average ACT composite scores Appropriation $7,586 $7,986 $6,981 $6,540 $6,332 Total Budget $7,360 $7,965 $9,809 $6,674 $6,963 from 28.5 to 32.0; FTE 72.1 76.0 76.5 61.4 60.0 • One 2011 U.S. Presidential Scholar and two Semifinalists; Mission • Four Oklahoma Academic All-State recipients; The mission of OSSM is twofold: (1) to foster the • Two National Merit Scholars and seventeen educational development of Oklahoma high school National Merit Finalists; students who are academically talented in science • Four National Hispanic Recognition Program and mathematics and who show promise of Scholars; exceptional development through participation in a • Four students with a perfect ACT composite; st residential educational setting emphasizing • 1 place team in the Oklahoma Mathematics instruction in the field of science and mathematics; League; and (2) to assist in the improvement of science and • Five Oklahoma Medical Research Foundation Sir mathematics education for the state by developing, Alexander Fleming Scholars; evaluating, and disseminating instructional programs • Two 2010-11 state winners of the Siemens and resources to all schools and students across the Award for Advanced Placement; state. • Two semifinalists for the U.S. Physics Olympiad Team; Programs • Twenty-three College Board Advanced • Residential High School Placement Scholars; nd • Regional Outreach Centers • Best in OK and 2 in the Nation – Varsity TEAM+S Engineering Competition; For more information about OSSM, visit their • Twenty-three Oklahoma State Regents for website. Higher Education Scholarship recipients; • Three recipients of a State Superintendent Award for Arts Excellence; FY-2012 Budget by Program • Eighteen Presidential Service Award winners. Goals for Upcoming Year 22% • OSSM's primary goal remains to be to provide Residential High School quality educational programs at the main Regional Outreach campus, regional centers and outreach Centers programs while continuing to expand the 78% outreach program; • The second phase of the dormitory will be completed in FY-2012 and the goal is to obtain adequate funding to begin the expansion of the OSSM opportunity to additional Oklahoma students beginning in FY-2013; B-98 FY-2013 Executive Budget Savings, Efficiencies and Shared Services in FY-2012 Given the current funding levels, OSSM seeks ways to continue the level of services provided. Some steps taken include using part-time instructors, securing temporary grants and searching for volunteer instructors. All of these efforts provide only a short term solution. OSSM is a relatively young agency and operations were established to be as efficient as possible, with any available resources being committed to the educational activity before allocating to other activities. Some efficiencies have been achieved with the advancement of technology (i.e. use of PeopleSoft modules for all operations, scanning of claims, etc). OSSM constantly monitors and reviews ways to reduce operational costs aside from the elimination of personnel and other non-constructive measures. There presently is a major review and implementation of possible energy efficiency and conservation program underway. OSSM has enlisted its student body not only to help develop, but to implement the program. B-99 FY-2013 Executive Budget Pardon and Parole Board (PPB) Savings, Efficiencies and Shared Services in Safety and Security Cabinet FY-2012 • The Agency to outsource the business manager position to OSF; Historical Budget and FTE (in $000's) • Daily monitoring of agency website to answer $3,000 50.0 inquiries from citizens. $2,500 40.0 $2,000 30.0 $1,500 20.0 $1,000 $500 10.0 $0 0.0 FY-2008 FY-2009 FY-2010 FY-2011 FY-2012 Appropriation $2,578 $2,578 $2,334 $2,334 $2,217 Total Budget $2,607 $2,599 $2,546 $2,283 $2,269 FTE 41.4 42.2 38.0 36.7 35.6 Mission The Pardon and Parole Board (PPB) provide recommendations for the supervised release of adult felons through a case-by-case investigative process. The Board strives to protect the public during this process and to maintain a low revocation and recidivism rate for the State of Oklahoma. With timely recommendations and appropriate community-level programs, the Board can contribute to the intelligent management and control of the State's inmate population. For more information about PPB, visit their website. Accomplishments over Past Year • Provide orientation training for new Parole Board Members; • Educate new governor staff, legislators and district attorneys to Pardon and Parole Board practices and procedures; • Improve communication with stakeholders, i.e. Department of Corrections (DOC), victims, families of offenders, law enforcement agencies etc.; • Forward victim notification requests to the District Attorneys Council; • Provide Pardon and Parole investigator reports upon requests electronically. Goals for Upcoming Year • Fill staff vacancies; • Update computer programs; • Improve/update agency website. Major Agency Projects • Develop a system where parole certificates are now available to DOC facilities online. B-100 FY-2013 Executive Budget Physician Manpower Accomplishments over Past Year • 277 nursing students received scholarship funds; Training Commission (PMTC) • 19 medical students received scholarship funds; Health and Human Services Cabinet • 19 family practice residents received scholarship funds; Historical Budget and FTE • 10 physicians received scholarship incentive (in $000's) funds to begin practice in a rural community; $8,000 $7,000 6.1 6.0 • 12 physician assistant students received $6,000 $5,000 6.0 scholarship funds; and 5.9 $4,000 $3,000 5.9 • Finalization of the Oklahoma Medical Loan 5.8 $2,000 $1,000 5.8 Repayment Program. $- 5.7 FY-2008 FY-2009 FY-2010 FY-2011 FY-2012 Appropriation $5,524 $5,524 $4,782 $3,740 $4,379 Total Budget $6,753 $7,284 $6,226 $4,499 $6,480 Goals for Upcoming Year FTE 5.8 6.0 6.0 6.0 6.0 • Secure funding for the Oklahoma Medical Loan Repayment Program, and Mission • Maximize the number of scholarship recipients The mission of the Physician Manpower Training according to appropriated funds available. Commission is to enhance medical care in rural and underserved areas of Oklahoma by administering Major Agency Projects residency, internship and scholarship incentive PMTC is working on a proposal to receive grant programs that encourage medical and nursing funds for administering the Oklahoma Medical Loan personnel to establish a practice in rural and Repayment Program. underserved areas. Further, PMTC aims to upgrade the availability of health care services by increasing Savings, Efficiencies and Shared Services in the number of practicing physicians, nurses and FY-2012 physician assistants in rural and underserved areas PMTC was able to save on administration costs of Oklahoma. throughout the year by reducing expenditures for discretionary costs such as travel and postage. Programs Further, the agency utilizes shared services for IT, • MD/FP Residency Program payroll, purchasing and legal. • Community Match Rural Scholarship Incentive Programs: o Rural Medical Education Scholarship Loan o Family Practice Resident Rural Scholarship o Physician/Community Match Loan; • Osteopathic Residency Program • Nursing Student Assistance Program, and • Physician Assistant Scholarship Program. For more information about PMTC, visit their website. FY-2012 Budget by Program 1% Administration 8% 15% Nursing Program 14% MD/FP Residency 20% Program Osteopathic Residency Program 42% Community Match Rural Scholarship B-101 FY-2013 Executive Budget Public Safety, Oklahoma Accomplishments over Past Year • "Functional Area Reviews" assessment used to Department of evaluate the major functions and performance (DPS) of each division, organization, policy related to Safety and Security Cabinet the operation of each division, products, leader development programs, facilities and training programs; Historical Budget and FTE • An employee climate survey was conducted. (in $000's) The review, combined with employee feedback, $270,000 1600.0 $240,000 has provided insight for proper alignment of $210,000 1200.0 $180,000 $150,000 functions and workflow processes; 800.0 $120,000 $90,000 • The Oklahoma Highway Safety Office hosted its 400.0 $60,000 $30,000 first Statewide Motorcycle Safety Summit; $0 0.0 FY-2008 FY-2009 FY-2010 FY-2011 FY-2012 • DPS's Driver License Examining Division has seen Appropriation $98,370 $97,170 $87,539 $88,432 $84,895 Total Budget $253,644 $225,492 $261,647 $242,287 $215,104 success with a centralized drivers testing FTE 1513.9 1522.0 1515.3 1,434.9 1,412.8 procedure, resulting in the reduction of wait times for applicants, and streamlining processes for administering the drive test; Mission • DPS has been working on the second version of The Oklahoma Department of Public Safety's (DPS) the Digital Driver License system; mission is to provide a safe and secure environment • In joint cooperation with the Oklahoma for the public through courteous, quality and Department of Transportation (ODOT), a new professional services. online permitting system has become operational. This system appears to be rapidly Programs increasing the Size and Weight Permits Divisions • Highway Safety Office ability to serve business owners. • Law Enforcement Services • Management Information Service Goals for Upcoming Year • Driver Licensing • Renewed focus on core functions: The agency • Motor Vehicle Operations will re-focus efforts on insuring they are • Size and Weights Permits providing timely and efficient services to the • Capital Outlay Troop Headquarters citizens of Oklahoma; • Pass Through Appropriations • Appropriately train DPS workforce; • Address trooper strength issues; For more information about DPS, visit their website. • Promote highway safety goals and education; • Maintenance of equipment and facilities; FY-2012 Budget by Program • Review all fiscal policies and practices to make Administration sure the agency is utilizing all funds in the most 21% Highway Safety Office efficient manner and to increase transparency. 0% 1% 6% 1% Law Enforcement Services Major Agency Projects 5% 7% Management Information Service • DPS has chosen a location for the Troop K Driver Licensing headquarters and is waiting for DCS to approve Motor Vehicle Operations the site; 8% • DPS is in the process of refurbishing an old car Size and Weights Permits dealership on I-240 to consolidate space and 4% Capital Outlay Troop agency resources. Once complete, the facility Headqtrs 47% Pass Through Appropriations will house the transportation division, the radio shop, driver license services and driver Other compliance services; • Troop C Relocation to the old Muskogee Reserve Center. B-102 FY-2013 Executive Budget Savings, Efficiencies and Shared Services in FY-2012 The redesign of numerous divisions, combined with process and leveraging current technology, efficiencies have been gained. Year to date, DPS has saved in payroll costs directly related to efficiency efforts. Additionally, DPS has realized savings in fuel costs. Every year DPS budgets for fuel costs based upon information from the federal government regarding fuel prices. B-103 FY-2013 Executive Budget Rehabilitation Services, Department Accomplishments over Past Year • DRS Disability Determination Division's (DDD) of (DRS) Investigation Unit partnered with Attorney Health & Human Services Cabinet General's office resulted in savings of $6 million; • DDD earned the prestigious, national Phoenix Historical Budget and FTE Award from the Social Security Administration (in $000's) for improving performance, boosting $180,000 1200.0 $160,000 productivity, increasing case clearances and $140,000 1000.0 serving as a national resource for disability case $120,000 800.0 processing. DDD cleared 67,257 disability $100,000 determination cases in 2010, achieving 98.6% 600.0 $80,000 accuracy, which is second in the region and the $60,000 400.0 nation. $40,000 200.0 • 100% graduation rate at Oklahoma School for $20,000 $0 0.0 the Blind and Oklahoma School for the Deaf; FY-08 FY-09 FY-10 FY-11 FY-12 Appropriation $29,475 $30,054 $29,370 $30,454 $30,149 • DRS served 1,994 high school students with Total Budget $117,254 $116,350 $145,440 $162,694 $146,140 disabilities. DRS is known nationally for FTE 894.1 883.3 953.4 1003.4 996.4 excellence in transition programs. • DRS surpassed the federal oversight agency's Mission goal of 2,292 employment closures by 520. The mission of the Department of Rehabilitation 2,812 clients found gainful employment. Services is to provide opportunities for individuals • DRS Vocational Rehabilitation Social Security with disabilities to achieve productivity, Reimbursement Program exceeded $1 million in independence and an enriched quality of life. revenue. DRS is reimbursed dollar for dollar by Great Purpose: Opening doors to independence and SSA for each client who maintained wages high cool jobs with benefits for people with disabilities. enough to permanently leave the Social Security Disability and Supplemental Security Income Programs programs. • Vocational Rehabilitation and Visual Services • DRS served 34 students in Project SEARCH, a Division one-year, worksite-based school-to-work • Oklahoma School for the Blind program; • Oklahoma School for the Deaf • More than 1,800 high school students • Disability Determination Division participated in School Work Study and gained valuable transferable employment skills; For more information about DRS, visit their website. • DRS completed the 1st WINGS Leadership Training for future agency leaders in October 2011; FY-2012 Budget by Program • Cold Case Unit received 651 referrals from VR/VS counselors and obtained resolution on Vocational Rehabilitation and Visual Services 408 of those for a 63% success rate. This is first 28% School for the Deaf Unit of its kind in the country and serves as "promising practice" for other rehab states. School for the Blind • Streamlined policies to remove redundancies 6% 59% Disability Determination and improved partnerships with Office of 7% Division Juvenile Affairs, Oklahoma Employment Security Commission, State Independent Living Council and Oklahoma Rehabilitation Council; and • DRS formed a partnership with Oklahoma Juvenile Affairs to place a DRS Transition Counselor at COJAC to help transition juveniles into the job market; B-104 FY-2013 Executive Budget Goals for Upcoming Year Savings, Efficiencies and Shared Services in Vocational Rehabilitation/Visual Services FY-2012 • Lead in a partnership with OESC to complete • The Paperless Imaging Project saves time and statewide Workforce Center(s) accessibility money through less storage needs, quicker design to provide equal access for all access to information and more user friendly consumers; access to information; • DRS is following the governor's initiative • DRS's DDD Disability Investigation Unit, in regarding Oklahoma businesses utilizing career partnership with AG's Office, resulted in savings readiness certificates achieved through the of $6 million. WorkKeys assessment. Obtaining a career readiness certificate helps consumers with disabilities compete for careers and jobs in local job markets. • WINGS Leadership Training second cohort will begin in December, 2011 and end in July, 2013. Oklahoma School for the Blind and Oklahoma School for the Deaf • Increase community and statewide awareness of school educational services; • Meet federal and state educational standards and meet/exceed public expectations; • Maintain 100% graduation rates with graduates attending college and/or reaching employment goals; and • Maintain state and national accreditations. Disability Determination Division • DRS's DDD Disability Investigation Unit increase savings from $6 million to $10 million; • Match quality performance to significant workload increases; and • Find qualified physicians and psychologists to meet current needs for determinations. Major Agency Projects • Vocational Rehabilitation and Visual Services Return on Investment (ROI) project to identify benefits and costs for participation of all applicants. ROI study will provide a full accounting of purchased and in-house service costs, as well as assess impacts of services on employment probability and earnings of program participants. • VR/VS Client Case File Imaging Project - In order to move to a paperless case file system, DRS has integrated with their internal client system to allow the creation of accessible electronic case files and storage in a central repository. B-105 FY-2013 Executive Budget Retirement Systems to the other systems becomes readily apparent when viewed in this context. The State retirement systems consist of the The simplest way to understand the health of any following six defined benefit pension plans: retirement system is to view its funded ratio, which is a ratio of debt to assets. The term fully-funded applies to a retirement system in which • Oklahoma Firefighters Pension and Retirement contributions are sufficient to pay for the benefits of System (Firefighters) existing and new employees. • Oklahoma Law Enforcement Retirement System (OLERS) The funding ratio of TRS is one of the lowest in the • Oklahoma Police Pension and Retirement nation. This gap in funding of TRS liabilities is an System (OPPRS) absolute obligation of the state according to an • Oklahoma Public Employees Retirement System Attorney General opinion. Ultimately, the responsibility (OPERS) and Uniform Retirement System for for this debt falls on the shoulders of all Oklahomans. Justices and Judges (URSJJ) • Oklahoma Teachers Retirement System (OTRS) In 2007, SB 357 passed both chambers and Governor • Retirement Plan for Full-time Employees of the Henry signed the bill into law. This legislation Department of Wildlife (DWR) increases the employer contribution rates into the Teachers Retirement System. Systems are funded with employee contributions, employer contributions, return on investments and, A sensible combination of asset classes is another in some cases, dedicated revenue streams. determinant for soundness of retirement funds. The allocation by asset class of the Oklahoma retirement There are two main types of plans in the system. funds are within prudent guidelines. OTRS, OPERS, One type includes police, firefighters, and OLERS, Firefighters, and Police account for 95% of invested which are referred to as "twenty and out" plans. assets of the retirement systems. Within the structure of OPERS, a "twenty and out" plan is maintained for correctional officers, probation and parole officers and fugitive Dedicated Revenues The state systems differ from many other defined apprehension officers in the Department of benefit retirement plans since several of the systems Corrections as well as for firefighters in the Military receive contributions other than employer and Department. employee contributions. TRS, Firefighters, OLERS, and Police are all recipients of dedicated revenue The other type of plan includes OPERS, URSJJ, TRS streams. and Wildlife which are defined benefit plans. These plans have a guaranteed benefit that is a function of The insurance premium tax provides all the years of service and salary. In order to be entitled to dedicated revenue for Firefighters and Police and these benefits, there is a requirement for a certain approximately half of the dedicated revenue to number of years of service before a member OLERS. These state revenues flow to police and becomes vested. firefighters although the members are employed primarily by cities and counties rather than the state. The "twenty and out" plans are aimed at public safety services where it is in the interest of the The retirement systems exist for the benefit of public to have the active members made up of employees and their beneficiaries. All of the systems younger, healthier individuals. These individuals provide a benefit for their members, with varying often serve in areas that are defined as hazardous provisions for their beneficiaries, in the event of the duty. These plans are extremely generous in their death of the member. benefits and are designed to allow retired members to go on to other careers. Spouse beneficiaries generally receive a lifetime benefit which varies from being the same amount as The relative size of the systems can best be the employee to half of the employee benefit. understood by looking at their membership Minor children beneficiaries receive a benefit as long numbers. The overwhelming size of TRS compared as they are minors or, in some cases, while enrolled in higher education. B-106 FY-2013 Executive Budget Oklahoma Firefighters Pension and Retirement System Historical Budget and FTE (in $000's) $14,000 12.0 $12,000 10.0 $10,000 8.0 $8,000 6.0 $6,000 $4,000 4.0 $2,000 2.0 $0 0.0 FY-2008 FY-2009 FY-2010 FY-2011 FY-2012 Total Budget $10,815 $10,968 $11,692 $11,692 $12,539 FTE 8.9 9.1 9.1 8.7 9.6 *Firefighters Pension and Retirement is a non-appropriated agency. Mission To be responsive in administering retirement benefits to firefighters of Oklahoma, to manage the firefighters' retirement fund prudently, and to embrace the highest ethical standards with regard to these endeavors. Programs For more information about Firefighters programs, visit their website. Accomplishments over Past Year The agency started the process of imaging member records to facilitate information integrity and efficiency. Goals for Upcoming Year • Complete imaging of member records and become a paperless office; • Begin transition from antiquated data records system to new records system. B-107 FY-2013 Executive Budget Oklahoma Law Enforcement Retirement System (OLERS) Historical Budget and FTE (in $000's) $6,000 7.0 $5,000 6.0 $4,000 5.0 4.0 $3,000 3.0 $2,000 2.0 $1,000 1.0 $0 0.0 FY-2008 FY-2009 FY-2010 FY-2011 FY-2012 Total Budget $4,956 $5,339 $5,372 $5,018 $4,962 FTE 5.2 6.0 5.8 5.0 5.0 *Law Enforcement Retirement System is a non-appropriated agency. Mission The mission of OLERS is to administer retirement/survivor retirement and medical benefits for members of the law enforcement profession, of the State of Oklahoma, and their families. OLERS places high value on the integrity of the agency. The agency's most important resource is the customer. OLER's goal is to treat every person, who comes into contact with the agency, with courtesy and concern; and to respond to all inquiries promptly, accurately and clearly. Programs For more information about OLERS programs, visit their website. Accomplishments over Past Year • Website completed • 18% of customers receiving paper checks converted to Direct Deposit Goals for Upcoming Year • 100% participation in Direct Deposit Savings, Efficiencies and Shared Services in FY-2012 • Reduction of travel costs B-108 FY-2013 Executive Budget Oklahoma Police Pension and Retirement System (OPPRS) Historical Budget and FTE (in $000's) $5,000 14.0 12.0 $4,000 10.0 $3,000 8.0 $2,000 6.0 4.0 $1,000 2.0 $0 0.0 FY-2008 FY-2009 FY-2010 FY-2011 FY-2012 Total Budget $4,139 $3,937 $3,565 $3,047 $3,146 FTE 11.1 11.4 11.0 11.5 11.6 *Police Pension and Retirement System is a non-appropriated agency. Mission To provide secure retirement benefits for members and their beneficiaries. Programs For more information about Police programs, visit their website. Accomplishments over Past Year • Purchased user-friendly automated pension system software; • Provided legislative support; • Purchased new document imaging system; • Provided adequate communication/education to membership. Goals for Upcoming Year • Continue to provide legislative support; • Acquire a new building to replace the current one. B-109 FY-2013 Executive Budget Oklahoma Public Employee Administrators (NAGDCA) for their collaboration on enrolling new participants in SoonerSave Retirement System (OPERS) during the annual benefits enrollment. • OPERS established customer surveys to measure Historical Budget and FTE how the staff meets customer's needs. The staff (in $000's) received positive feedback from the surveys $10,000 60.0 regarding the receptionist area, the withdrawal $8,000 50.0 process, the OPERS website and the new $6,000 40.0 retirement seminar videos. 30.0 $4,000 20.0 • OPERS also received the Public Pension System $2,000 10.0 Standards Award for the first time which $0 FY-2008 FY-2009 FY-2010 FY-2011 FY-2012 0.0 recognizes systems that have achieved funding Total Budget $7,792 $7,879 $7,921 $8,471 $8,192 adequacy as well as those who follow best FTE 52.3 49.2 52.0 55.2 55.6 practices in financial reporting, investment *Public Employee Retirement System is a non-appropriated agency. oversight and member communications. Mission Goals for Upcoming Year The mission of the OPERS' board and staff is to • Complete migration from legacy pension provide and promote accountable and financially administration to Oracle database system; sound retirement programs for Oklahoma's public • Begin to pay retirees one month after leaving servants. OPERS administers a defined benefit the regular payroll; retirement plan for public employees and a separate • Improve the current disaster recovery plan to plan for judges and justices, known as the Uniform include off-site parallel database; Retirement System for Justices and Judges (URSJJ). OPERS' clients are composed of: • Scan and digitize at least 75% of all incoming documents and forms. • State and county employees, except for Oklahoma and Tulsa counties; and • Local governments that choose to participate. Major Agency Projects • Implement a pension administration system using database software and improved work Programs flows: For more information about OPERS programs, visit o Phase 1 is moving the HP to Oracle. Phase 2 their website. is for improving workflows and adding new features to the applications such as Accomplishments over Past Year integrating imaged documents with the • Government Finance Officers Association database. (GFOA) recognized OPERS for outstanding • Shorten time for providing new retiree benefits achievement in financial reporting for 14 years to the month of retirement by: in a row. OPERS was also recognized four years o Making programming changes, accounting in a row for outstanding achievement for its changes, and improving work processes so Popular Annual Financial Report (PAFR). that new retirees do not have an • OPERS rolled out a retirement planning program interruption in income between active for their members that covers financial employment and retirement; and planning, insurance, estate issues, and how o Estimate completion time to identify the these topics relate to their OPERS benefits and issues specific to the two-month period the SoonerSave program. A national firm was currently in place for processing retirement retained to develop the curriculum. The of individuals, to resolve such issues and to program began in June, 2011, and a total of 66 implement changes necessary for the seminars have been held with a total retirement benefit payment to be attendance to date of 1,115. processed in the month of retirement. • OPERS' imaging processes continue to improve. • Upgrade the functionality of the OPERS websites • OPERS and the Employees Benefits Council were by offering more online transaction ability, recognized by the National Association of online forms, access to data, and information Government Defined Contribution about the plans the agency administers; B-110 FY-2013 Executive Budget • Forms overhaul and reduction, which will • Designate a position to focus on the include bar-coded and "smart forms"; performance of local governmental reporting to • Provide a structure and ongoing oversight of OPERS; OPERS and URSJJ forms to ensure all forms are • Establish a subcommittee or working group to up to date and consistent with other study the possible acquisition of an office communications materials; building that will provide a permanent home for • Improvement to Records / Document / Mail OPERS and produce a good return on the Center for all office documents, data and investment; information; • Achieve and maintain well-funded status to • Streamline communications with customers: assist the state in paying retirement benefit o Help automate the production and obligations, and secure changes in plan design distribution of frequently-used that makes the plan easier to understand or correspondence from OPERS to members more equitable without an undue increase in and employers; the retirement system's liabilities. o Enhance the quality and consistency of that correspondence; and Savings, Efficiencies and Shared Services in o Enable analysts to devote additional time to FY-2012 providing services directly to members. • Consolidated data entry positions into the • Develop or obtain Customer Relationship Records Department to better reflect and Management (CRM) technology. This project oversee their combined function. This included would provide more detailed information on the converting the old microfilm room into an types, quantity, and frequency of various efficient mail center. The microfilm records customer inquiries, and capture all incoming were moved to the file room to bring all inquiries into a repository for each member. member records into one central area. One FTE • Implement day-forward scanning and electronic was saved and left vacant. delivery of documents to support all agency • A contract to administer OPERS payroll was business processes. The objective of this project entered into with the Office of State Finance, is to have all incoming documents imaged on which permitted another FTE to be saved. the same day they are received. This project has three primary goals: o Make documents available to staff sooner and make documents available to multiple staff simultaneously; o Ensure business continuity in the event of a disaster; and o Reduce cost and dependence on storage space. • Disaster Recovery Plan: Acquire or contract for a hot site or cold site. Develop capability to continue operations at an offsite location in the event of disaster. • Comprehensive auditing of member data to ensure reliability and accuracy: o Convert historical data inconsistencies to uniform identification system; o Enhance member communications and transactions, using clean data to provide accurate information such as service credit, retirement eligibility, etc.; o Provide information to members online through secure login. B-111 FY-2013 Executive Budget Oklahoma Teachers' Retirement • Improve the employer reporting process to protect and promote the financial interests of System (OTRS) both OTRS and OTRS clients. Historical Budget and FTE Major Agency Projects (in $000's) • Complete installation and testing of the new $350,000 60.0 OTRS client accounting system (ALICE 1.0). $300,000 50.0 $250,000 40.0 $200,000 $150,000 30.0 Savings, Efficiencies and Shared Services in $100,000 20.0 10.0 FY-2012 $50,000 $0 0.0 • Performed a post-retirement employment FY-2008 FY-2009 FY-2010 FY-2011 FY-2012 Total Budget $321,875 $324,909 $315,602 $286,486 $305,636 review which resulted in OTRS collecting over FTE 49.3 47.2 43.6 39.2 31.6 $250,000; *Teacher's Retirement System is a non-appropriated agency. • Collected client e-mail addresses to reduce the amount and cost of materials mailed as a part of Mission the OTRS go-green initiative; The mission of the Oklahoma Teachers Retirement • Reduced administrative expenses by System (OTRS) is to provide outstanding customer approximately $263,000 in FY-2011 and over service to all active and retired clients. $500,000 since 2009; • Saved approximately $3 million in investment Programs expenses in FY-2011 by renegotiating For more information about OTRS programs, visit investment manager fees. Total investment fee their website. expenses saved since 2009 is approximately $5 million. Accomplishments over Past Year • Reduced unfunded liability from $10.4 billion to $7.6 billion; • Improved OTRS funded position from 47.9% to 56.7% due primarily to the unfunded liability reduction; • Reduced the time OTRS will reach 100% funded status from infinite to 22 years; • Achieved an investment return of 23.5% which was in the top 25% of the pension funds in the United States; • Successfully worked with legislative leaders and Governor Fallin to address the pension fund's unfunded liability through legislation; • Paid 44,675 retirees residing in the state of Oklahoma approximately $825 million during Fiscal Year 2011; • Conducted five retirement planning seminars at various locations around the state to educate OTRS clients; • Served 50,829 retired members and 146,636 total members both active and retired. Goals for Upcoming Year • Conduct three retirement planning seminars at various locations around the state to educate OTRS clients; B-112 FY-2013 Executive Budget Department of Wildlife Retirement Plan (DWR) The Department of Wildlife Retirement Plan (DWR) is a single-employer defined benefit and contribution plan. This retirement system is unique since a single agency manages the retirement system for its own employees. All permanent, full-time Department of Wildlife Conservation (ODWC) employees hired prior to July 1, 2010, are eligible to participate in the Defined Benefit Plan on the date of their employment. Employees hired after July 1, 2010 are enrolled into a Defined Contribution Retirement Plan. The Defined Contribution Plan currently has 20 members. The Defined Benefit Plan has 316 active participants and 209 retired and inactive participants. It has a funded ratio of 78.1%. The revenue sources for the retirement funds come from the department's contribution and the employee's contributions. The funds are held and invested through a trust account. The employer contribution is based on the annual valuation report and is currently set on a 12-year amortization schedule to fund the liability. B-113 FY-2013 Executive Budget Scenic Rivers Commission (OSRC) • The State leveraged $71,500 with $134,300 in cost-share match provided by US Geological Commerce & Tourism Cabinet Survey and US Army Corps of Engineers to fund $205,800 in Cooperative Illinois River Basin Historical Budget and FTE Water Quality Monitoring and Stream Gaging in $000's $1,400 16.0 Networks that the public, government and non- $1,200 $1,000 14.0 12.0 governmental organizations rely upon for water $800 10.0 8.0 quality, water quantity, flood elevations/high $600 $400 6.0 4.0 water events and recreation forecasting; $200 2.0 $0 FY-2008 FY-2009 FY-2010 FY-2011 FY-2012 0.0 • Partnered with sister-local, regional, state, Appropriation $345 $345 $297 $279 $271 federal and tribal agencies on many projects, Total Budget FTE $1,218 13.5 $1,233 13.6 $946 13.0 $808 11.5 $620 11.7 including the Oklahoma Department of Transportation and Oklahoma Department of Wildlife Conservation to provide public access to Mission scenic rivers, the Conservation Reserve The mission of the Oklahoma Scenic Rivers Enhancement Program administered by the Commission (OSRC) is to protect, preserve and Oklahoma Conservation Commission and enhance Oklahoma's designated "Scenic Rivers education outreach program with Oklahoma Areas." Department of Environmental Quality. Programs Goals for Upcoming Year For more information about Scenic Rivers • To continue improving efficiencies in services Commission, visit their website. provided by the OSRC to the citizens of the state Accomplishments over Past Year of Oklahoma. Additionally, the OSRC will invite scenic river stakeholders to partner with the • Provided public use facilities and services to approx. 500,000 individuals visiting the Barren agency in 2012 as OSRC initiates a Fork Creek, Flint Creek and Illinois River to float, comprehensive review of all aspects of the swim, sunbathe, camp, fish, hunt, hike, ride operations and provisions of the Oklahoma equestrian trails, mountain bike, experience Scenic Rivers Act. foliage tours, observe Bald eagles and elk, as Major Agency Projects well as other outdoor activities that scenic rivers • Expanding public access to scenic rivers; provide to citizens and visitors to Oklahoma; • Partnering with Oklahoma Water Resources • Approximately 180,000 individuals floated the Board, Oklahoma Conservation Commission and Illinois River utilizing the services offered by OSU to undertake 12 projects to stabilize eroded commercial flotation device operations, stream banks. providing a direct economic impact to Cherokee County alone of $12,000,000; Savings, Efficiencies and Shared Services in • Team members recycled aluminum, iron and FY-2012 other materials from trash/waste collections • Partnered with the Oklahoma Tourism and that resulted in more than $1,000 in revenue Recreation Department to provide generated back to the agency budget; administrative functions to OSRC for payroll, • Provide assistance to co-manage the 556-acre accounting, budgeting, purchasing and human Sparrow Hawk Primitive Area to reduce costs to resources; Oklahoma Department of Wildlife Conservation • Partnered with the Oklahoma Conservation personnel, transportation and equipment being Commission, Oklahoma Department of dispatched from their properties; Environmental Quality, U.S. Army Corps of • Provided 152 environmental reviews for Engineers and U.S. Geological Services for the Arkansas and Oklahoma Pollutant Discharge Illinois River Basin Water Quality Monitoring and Elimination System Permits, Section 404 Dredge Stream Gaging Network. This partnership allows and Fill Permits, Hazard Mitigation, Community the state to leverage $71.5K with federal cost- Development Block Grant and other projects share match of $134.3K for a total project cost throughout Oklahoma; of $205.8K. B-114 FY-2013 Executive Budget Secretary of State (SOS) reduce the cost of the services provided by the position from almost $60,000 per year to $8,000 Secretary of State Cabinet per year. • Implementation of Charitable Contributions Act Historical Budget and FTE (SB 1070) – The Oklahoma Solicitation of (in $000's) Charitable Contributions Act was implemented $5,000 40.0 which required programming changes by the IT 35.0 $4,000 30.0 staff, website changes to assist customers and $3,000 25.0 20.0 outreach training programs conducted in $2,000 15.0 conjunction with the AG's Office and the 10.0 $1,000 5.0 Oklahoma Center for Non-Profits. This bill $0 FY-2008 FY-2009 FY-2010 FY-2011 FY-2012 0.0 required that the over 50,000 charity Total Budget $3,730 $4,694 $4,269 $4,649 $4,463 documents SOS had in its archives be available FTE 33.5 31.1 30.9 32.2 35.5 online for public viewing, but each of these *Secretary of State is a non-appropriated agency. documents had to be reviewed individually for the redaction of confidential information Mission contained in them like social security numbers. The mission of the Secretary of State's office is to • Probation and Parole Available on Website – provide an exceptional standard of service to the SOS processed 1,020 probation and parole public, business community and governmental documents for the Governor. Parole officers agencies through a registry of Oklahoma's official and law enforcement across the state needed documents and the delivery of services designed to quick access to the conditions contained in improve public access and public awareness. these documents and routinely contacted the office by telephone to gain that information. Programs Agency IT staff developed a system that now • Business Registration Services allows these documents to be retrieved on the • Executive and Legislative Services SOS website, which offers immediate access • Central Filing and almost eliminated the need for handling the • Administrative Rules telephone calls. • Open Meetings Calendar – The Office of For more information about SOS, visit their website. Administrative Rules has always provided meeting information on the SOS website, but FY-2012 Budget by Program now SOS offers a calendar that allows users to 3% 2% Administration / Support simply click on a date to see if there are Svc meetings scheduled. Business Registration Svc 10% • ACH Payments – The Finance Division was able 10% 43% Executive & Legislative to work with the IT Division and implement a Svc Central Filing process that allows a customer to set up ACH 4% payments online for services. Administrative Rules 28% Ballot Titles Goals for Upcoming Year • Business Laws – SOS highly anticipates changes to the Business Activity Tax laws which will Accomplishments over Past Year cause a flurry of activity for both the Business • Non-appropriated status - Over the last year, Services Division and IT staff. The goal is to the Secretary of State's Office was able to manage that transition as seamlessly as become completely self-reliant on its business possible. skills, i.e. non-appropriated. • Succession Planning - SOS had 1/3 of its staff • Management Level Reduced by 25% - The eligible to retire when the Secretary took office agency has also reduced its director level in 2011. Five (5) long-term employees in that positions by two (2) through attrition and one list have already retired. This brought (1) by a VOBO. This is a 25% reduction in agency succession planning to the forefront for the personnel. The VOBO allowed the agency to agency. B-115 FY-2013 Executive Budget • Employee handbook - The agency is in the process of updating its employee handbook and plans to complete it this year. The new handbook will be easily accessible and searchable by employees online. • Procure a replica of the State Constitution - SOS currently displays the only original copy of the Oklahoma State Constitution. While all efforts are made to protect this valuable document, the intent is to procure an exact replica that could be displayed so that the original may be secured in a manner that will properly preserve this incredible, irreplaceable document. • Provide general International Relations services on the SOS website – This goal will benefit the general public and heighten the awareness of the services that SOS offers. • Obtain business email addresses for customers to provide for early detection of attempts at business identity theft by sending automatic alerts of filing activity. It would also provide a quick means of notice to customers for other alerts or changes. Major Agency Projects SOS has requested additional office space in the Capitol to consolidate staff into one building and to offer all business services in the same building. If successful, the initial move will be a major project but would not require appropriated funding. Savings, Efficiencies and Shared Services in FY-2012 • SOS eliminated a service contract with the Office of State Finance and absorbed the function being provided into its existing positions at a savings of $18,000 per year. • Reviewed mobile phones issued to employees and reduced them by 25%; • Reduced mailing costs by eliminating a contract service for picking up the mail. This change • saved money and expedited the time within which mail is received, allowing SOS to expedite services provided to the public. B-116 FY-2013 Executive Budget Securities Commission For more information about the Securities Commission, visit their website. Finance and Revenue Cabinet Historical Budget and FTE FY-2012 Budget by Program (in $000s) $25,000 30.0 25.0 $20,000 37% Operations 20.0 $15,000 Investor Education 15.0 $10,000 63% 10.0 $5,000 5.0 $0 0.0 FY-2008 FY-2009 FY-2010 FY-2011 FY-2012 Total Budget $19,761 $7,007 $6,511 $6,368 $6,932 FTE 25.7 25.8 25.5 26.1 26.3 Accomplishments over Past Year *Securities Commission is a non-appropriated agency • Increased communication with general public through Facebook, Twitter and a more user- Mission friendly web site; The primary mission of the Department of Securities • Implementation of pilot program for desk audits is to provide investor protection through the of registered investment advisers, in lieu of on- administration and enforcement of the Oklahoma site examinations; Uniform Securities Act of 2004, an act prohibiting fraud in securities transactions and requiring the • Implementation of remote deposit capture; and registration of broker-dealers, agents, investment • Enhanced investor education program through: advisers and investment adviser representatives, o High school teacher training in connection and the registration of securities. The Department with the Students Tracking and Researching also administers the Oklahoma Subdivided Land the Stock Market (STARS) program, and Sales Code, the Oklahoma Business Opportunity Act, o Additional media outreach through new and the Oklahoma Take-Over Disclosure Act. PSAs and a documercial. Programs Goals for Upcoming Year • Investigation and Enforcement • Meet challenges presented by changes in the o Oklahoma Subdivided Land Sales Code securities industry as well as legislative and o Oklahoma Business Opportunity Act regulatory initiatives at the federal level, which o Oklahoma Take-Over Disclosure Act includes: • Registration o Pending crowd-funding legislation; o Broker-dealers o Change from the US Securities and o Agents Exchange Commission (SEC) to the states, o Investment Advisers and Representatives for the regulation of investment advisers o Securities with assets under management between • Examinations $25 million and $100 million. o Securities Professionals and Issuers • Enhance the Department's investor education • Investor Education program through: o Invest Ed® – University of Oklahoma o Test program for Oklahoma's workers o Investor Education in Your Workplace known as Investor Education in Your (IEiYW) Workplace (IEiYW); o Elder Investment Fraud and Financial o Further development of the Elder Exploitation Prevention Program (EIFFE) Investment Fraud and Financial Exploitation o Students Tracking and Researching the (EIFFE) Prevention Program utilizing Stock Market (STARS) healthcare professionals; o Creation of investor protection PSAs; o Focus on community outreach efforts; B-117 FY-2013 Executive Budget o Provide additional teacher training sessions for the Students Tracking and Researching the Stock Market (STARS) program; o Production and editing of additional investor protection documentaries; and o Purchase and implementation of an e- discovery on-site software solution that will initially enable the agency to manage its legal and investigative enforcement cases and subsequently, its regulatory matters. Major Agency Projects The Department, in conjunction with the University of Oklahoma OUTREACH, produces an unbiased investor education program for the benefit of a broad range of Oklahomans. The Invest Ed® program includes STARS, a documentary series, and the Investment Minute radio and television series. Savings, Efficiencies and Shared Services in FY-2012 The Department left the former Chief Financial Officer position vacant, thereby reducing payroll costs. At the same time, the Department has increased its reliance on CORE and OSF's financial support services, thereby, streamlining the internal financial reporting activities. B-118 FY-2013 Executive Budget Space Industry Development plans to be in a position to play a role in Unmanned Aerial Systems research and development testing Authority (OSIDA) and operations. Transportation Cabinet Major Agency Projects Historical Budget and FTE The agency will complete the construction of an (in $000's) operational control building with FEMA assistance $6,000 6.0 and plan to seek and acquire an Airport Surveillance $5,000 Radar System (ASR) to increase flight operations $4,000 4.0 $3,000 safety. The Oklahoma Spaceport played host to over $2,000 2.0 40,000 aeronautical flight operations last year and $1,000 $0 0.0 hope to see an increase with the addition of an ASR. FY-2008 FY-2009 FY-2010 FY-2011 FY-2012 Appropriation $530 $530 $456 $424 $395 The agency will attempt to acquire a surplus system Total Budget $3,728 $3,207 $5,155 $4,847 $4,931 from the Department of Defense. FTE 3.8 3.9 3.7 2.9 3.1 Savings, Efficiencies and Shared Services in Mission FY-2012 To create in this decade a commercial spaceport that The agency has produced a savings of 71% related to will expand and economically develop the Oklahoma facility maintenance cost. OSIDA was previously Space Frontier with advanced spacecraft operation using the South Western Oklahoma Development facilities and to promote the development and Authority to provide property maintenance at the improvement of space exploration and spaceport facility that included mowing, water system, sewer facilities; to stimulate the development of space and waste water management, maintenance and commerce and education, including, but not limited repair on buildings, and airport facility maintenance to, the commercialization of the space industry and until March 31, 2011. OSIDA is presently utilizing the the development of space-related industries; to services of a local community through an Inter-Local promote research and development related to space Agreement to manage the water system and sewer and space-related industry and to promote tourism and waste water. in connection with the foregoing. Programs For more information about OSIDA, visit their website. Accomplishments over Past Year The OSIDA signed a $1.4 million Joint Use Agreement with the United States Air Force Air Training Command to use the Oklahoma Spaceport for pilot training. The agency applied for and received a $600,000 Airport Improvement Grant to acquire and install runway and taxi way signage and runway end identifier lights (REILS) for the primary runway. A fuel distribution company located on the facility that will employ 15 FTE with starting salaries listed at $70,000 and an estimated annual payroll in excess of $1 million. Goals for Upcoming Year Increase Spaceport tenant base, acquire additional FAA Grants for facility upgrades and improvements and host one of the first sub-orbital spaceflights from the Oklahoma Spaceport; additionally, OSIDA B-119 FY-2013 Executive Budget Supreme Court of Oklahoma Major Agency Projects Judiciary Cabinet The Supreme Court is in the process of implementing a statewide unified case management system for the trial and appellate courts which will provide many Historical Budget and FTE cost savings and efficiencies, including docket (in $000's) management, statistical reporting, jury $60,000 200.0 management, a unified accounting system for 175.0 $50,000 $40,000 150.0 tracking budgets and managing expenses, e-filing, e- 125.0 $30,000 100.0 commerce, and information sharing with law 75.0 $20,000 50.0 enforcement, district attorneys and other executive $10,000 25.0 $0 0.0 branch agencies. FY-2008 FY-2009 FY-2010 FY-2011 FY-2012 Appropriation $19,421 $19,247 $16,550 $15,381 $17,300 Total Budget $41,848 $50,232 $53,058 $42,870 $43,351 Savings, Efficiencies and Shared Services in FTE 162.7 172.3 177.1 176.0 173.8 FY-2012 • Restricted the use of Active Retired Judges in Mission the District Courts; and The Oklahoma Supreme Court seeks to provide a fair • The Supreme Court participates in the CORE and impartial judicial system. budget, payroll and financials programs through the Office of State Finance. Programs • Court of Civil Appeals • Dispute Mediation • Court Clerk's Office • Management Information Services • Courts ONENET Project For more information about OSC, visit their website. FY-2013 Budget by Program Supreme Court Justices & 13% Staff 17% Admin Office of the Courts Court of Civil Appeals 22% Dispute Mediation Court Clerk's Office 31% Management Information Services 13% Courts ONENET Project 2% 2% Accomplishments over Past Year OSC worked on the design phase of a new unified case management system for the trial courts and appellate courts. Goals for Upcoming Year Custom designing the newly unified case management system and implementing the jury management program and local court fund accounting program. B-120 FY-2013 Executive Budget Tax Commission (OTC) Goals for Upcoming Year Finance and Revenue Cabinet • OneLink phase II rollout; • Agency disbursements to businesses via direct Historical Budget and FTE deposit; and (in $000's) • Develop constructive and productive $160,000 1000.0 relationship with CIO for the IT consolidation $120,000 800.0 initiative. 600.0 $80,000 $40,000 400.0 200.0 Major Agency Projects $0 FY-2008 FY-2009 FY-2010 FY-2011 FY-2012 0.0 • The agency continues to implement an Appropriation $48,201 $50,201 $42,831 $46,831 $46,916 integrated tax system, which consolidates its Total Budget $131,621 $150,607 $138,797 $138,698 $116,062 many tax systems into one, cohesive system. FTE 903.0 893.6 828.3 749.9 746.3 This project is expected to save the state approximately $500,000 annually in efficiencies Mission and processing costs. Additional cost savings To serve the people of Oklahoma by promoting tax will be recognized from streamlining the major compliance through quality service and fair tax systems into one integrated system. It will administration. create numerous staff level production efficiencies and result in many more Programs transactions being accomplished daily by all • Taxpayer Services levels of staff. • Ad Valorem Programs • The agency's partnership with a recognized data • Central Processing mining company continues to enhance revenue • Tax Policy collections for state and local entities. • The agency's refund intercept debt collection For more information about OTC, visit their website. program has been modified and expanded to include the collection of municipal debts in FY-2012 Budget by Program addition of debts owed to state agencies and Administration / institutions of higher education. Electronic 2% Headquarters funds transfer has also been implemented with 4% 8% 8% Taxpayer Services this change. 12% Ad Valorem Programs • An on-line cigarette and tobacco payment and 5% reporting system has been developed for use by 38% 1% Central Processing wholesalers. This system will streamline 19% Tax Policy payment and reporting of these taxes and provide efficiencies for compliance initiatives. Management Svc 3% Savings, Efficiencies and Shared Services in Accomplishments over Past Year FY-2012 • OneLink Integrated Tax System phase I rollout; The Tax Commission continues to leverage available • Income tax refund payments via direct deposit technology in an effort to be effective and efficient or debit cards; with available resources. Savings were realized with • On-line alcohol, cigarette and tobacco reporting enhanced electronic filing options for businesses. As and payment system; more businesses electronically file paper forms are • Implementation of a cigarette wholesaler on- no longer generated and mailed. More electronic line stamp ordering system; income tax filers also resulted in lower labor costs • Additional revenue enhancements through data for the agency. With the re-write of the agency's on- mining; line business tax filing system (QuickTax) by the • Addition of the new prepaid wireless 911 fee to State's web provider, the agency is now saving the agency's on-line business filing system; and approximately $400,000 annually in transaction fees. • Addition of the newly enacted Business Activity Tax forms and data entry systems. B-121 FY-2013 Executive Budget Teacher Preparation, Oklahoma • Provided program review training in thirteen program areas for over 130 university faculty Commission for (OCTP) members, policymakers, and P-12 educators. Education Cabinet • Facilitated or directly reviewed 70 teacher education programs. Historical Budget and FTE (in $000's) Candidate Assessment $9,000 10.5 $8,000 10.0 • Increased the number of computer-based test $7,000 $6,000 sites with the addition of six new state testing 9.5 $5,000 $4,000 centers; 9.0 $3,000 $2,000 • Expanded computer-based testing options to 8.5 $1,000 include the Elementary Education subject area $- 8.0 FY-2008 FY-2009 FY-2010 FY-2011 FY-2012 exam, the Oklahoma General Education Test Appropriation $2,060 $2,060 $1,772 $1,641 $1,526 Total Budget and the Oklahoma Professional Teaching Exam; $7,279 $8,055 $7,272 $7,372 $4,903 FTE 10.2 10.3 10.1 10.2 8.9 • Administered over 19,000 exams via 6 paper- based and 6 computer-based test administration; Mission • Expanded test item banks for Business To develop, implement, and facilitate competency- Education, English, and US History/OK History/ based teacher preparation, candidate assessment, Government/Economics subject area exams in and professional development systems to prepare preparation for future computer-based test exceptional educators to teach all students. administrations. Programs Professional Development • Teacher Assessment • 386 teachers and principals participated in Year • Teacher Education Program Accreditation 1 and Year 2 of mentoring professional • Professional Development Institutes development and the Oklahoma Mentoring Network (OMN) mentoring program; For more information about OCTP, visit their • 600 mentor pairs (1200 teachers) in 31 districts website. participated in the OMN mentoring program; • 2,187 Total PK-6 teachers and administrators FY-2012 Budget by Program participated in Reading Professional Development Institute; 6% • 30 school grant sites participated in Years One, Administration 8% Two, or Three of the 3-year Literacy First 5% Teacher Assessment Reading Reform Process; Teacher Education Program • 103 school sites sustained the Literacy First Accreditation Reading Reform Process. Professional Development 81% Institutes Inquiry Science • 272 teachers and 27 administrators participated in Year One and Year Two of the 2 year Inquiry Accomplishments over Past Year Science Professional Development Institute Program Accreditation (PDI), implementing the science program at 22 • Implemented a requirement that teacher school sites; preparation units must provide an annual report • 110 previous grant school sites sustained the on progress toward correcting any areas for Inquiry Science Program. improvement cited by an accreditation team; • Increased the number of national reviewers on National Board Certification the state Program Review Advisory Board; th • Oklahoma ranks 11 nationwide in the number • Provided Board of Examiners training to over 40 (174) of new National Board Certified Teachers university faculty members, commission (NBCTs); members, and P-12 educators. • Oklahoma ranks tenth in the total number of B-122 FY-2013 Executive Budget teachers (2,994) who achieved certification over • Estimated saving over $150,000 annually as a time; result of contracting financial services with OSF • Oklahoma NBCTs make up seven percent of the and reduction in staff of two full-time state's teaching force. employees. Expenditures analysis in all agency operations resulted in significant savings in Goals for Upcoming Year communications, printing, and other costs. • Through participation in the Teacher • Improved customer service with expanded Performance Assessment Consortium (TPAC), office hours and improved telephone coverage; investigate a performance- based assessment • Increased number of computer-based tests and for teacher candidates centered on student test sites resulting in a significant increase in impact. The TPA will be field tested in spring teacher certification exams administered across 2012 by seven Oklahoma university teacher the state; preparation programs. • Implemented online teacher certification • Pursue a statewide clinically-based teacher examination registration system; preparation model which centers education • Provided online test results analyzer for teacher coursework on experiences in the P12 classroom preparation institutions; requiring the development of deep partnerships • Expanded and updated agency website; with P12 schools; • With the consolidation of financial services with • Adopt and implement the revised Interstate OSF, OCTP is operating and serving businesses Teacher Assessment and Support Consortium and constituents more efficiently. Model Core Teaching Standards which emphasize student achievement, critical thinking, and personalized learning for diverse learners and serves as the framework for the accreditation of Oklahoma's teacher preparation programs; • Utilize the OCTP Independent Survey of First Year Teachers to further drive teacher preparation program improvements. Major Agency Projects • Implementation of the four major initiatives; • Development of a teacher preparation report card; • Implementation of the newly developed Continuous Improvement and Transformation Initiative teacher preparation program accreditation processes; • Provide targeted professional development for teacher preparation faculty; • Promulgate rules to raise teacher preparation standards; • Collaborate with the OK State Department of Education as members of the State Consortium on Educator Effectiveness (SCEE). Savings, Efficiencies and Shared Services in FY-2012 • All agency services are shared; financial services and Information Technology are consolidated with OSF: B-123 FY-2013 Executive Budget Tourism and Recreation Department FY-2012 Budget by Program (OTRD) Commerce and Tourism Cabinet 7% 5% Division of State Parks Division of Travel and Historical Budget and FTE 21% Tourism (in $000's) Administration $120,000 800.0 67% Major Activities $100,000 700.0 600.0 $80,000 500.0 $60,000 400.0 $40,000 300.0 Accomplishments over Past Year $20,000 200.0 • Reduced workers' compensation costs through $0 FY-2008 FY-2009 FY-2010 FY-2011 FY-2012 100.0 safety training; Appropriation Total Budget $27,827 $98,162 $28,042 $98,552 $23,966 $96,407 $22,503 $93,452 $21,803 $97,862 • Generated 51% of the state parks' total sales in FTE 798.7 751.4 688.3 623.7 640.2 FY- 2011 by private businesses. Concession payments to the Division of State Parks amounted to $864,857 in fiscal year FY-2011 Mission based on gross sales of $18,016,123. Over 50 The mission of the Tourism and Recreation private business concessionaires provided Department (OTRD) is to advance the exceptional recreational services and support in state parks quality of life in Oklahoma by preserving, (marinas, horseback riding, canoeing, bicycle maintaining and promoting the state's natural assets rental, water sports, groceries, and snack bars and cultural richness. As the steward of the state are examples of private operations). Combined park system, OTRD is the caretaker of Oklahoma's total sales for lessees and the Division of State diverse, magnificent natural resources. OTRD also Parks totaled $35,402,134. plays a critical role in enhancing the state's economy • Reconfigured the state park system by through the promotion of Oklahoma as a transferring seven state parks to other entities; destination, and provides leadership and guidance to • Developed a plan for the agency to engage the communities across the state by working together to private sector and build partnerships that are propel the state forward. mutually beneficial. For example, OTRD now has a relationship with Oklahoma Ford Dealers Programs that resulted in roughly $100,000 in private • State Parks funds to the agency as well as $10,000 in related o Golf Courses cost savings; o Resorts • Cultivated opportunities for niche travel • Travel and Tourism markets such as genealogy travel, medical o Tourism Information Centers tourism and motorcycle travel, as a result of an o Traveler Response Information (TRIP) analysis of current travel trends and consumer • Major Activities behavior. All are now featured on TravelOK.com o Oklahoma Today Magazine and are being promoted through other o Discover Oklahoma marketing efforts. Through the genealogy o Oklahoma Film and Music Commission tourism presence on TravelOK.com, all 77 o Multicounty Organizations Oklahoma counties are featured in a special section on the website, including genealogy- For more information about OTRD, visit the OTRD based attractions in most Oklahoma website (State Parks, Travel Promotions, Oklahoma communities. Since the launch of the genealogy Today Magazine, Discover Oklahoma, and Oklahoma section on TravelOK.com, in late summer 2011, Film and Music Commission). there have been more than 69,400 page views by potential travelers. • Upgraded production of Discover Oklahoma television show to High Definition (HD) format B-124 FY-2013 Executive Budget to comply with the FCC deadline to broadcast in • Processed a backlog of surplus vehicles and digital format. The show's staff also pioneered inventory; the process for in-house closed captioning of • Initiated energy efficiency programs at the state high definition programming shot on location. parks: • "Soft-launched" an on-line Oklahoma Music o Completed a statewide bulb and fixture Guide through the Oklahoma Film and Music replacement project; Office. The site is currently in beta testing o Invested in expanded insulation; phase. Once officially launched, this is a o Used energy star rated appliances for all modernization that will provide one-stop replacements in cabins and lodges; shopping at www.oklahomafilm.org for all o Replaced old HVAC systems with higher things related to the music industry (talent, SEER rated units, as units needed equipment, venues, support services and replacement; facilities). o Replaced windows and other building • Reduced employee costs by utilizing Galt features with energy saving ones where temporary services. In particular, the Division of practical; and State Parks used temporary employees to fill o Conserved water by using low flow toilets seasonal positions, which saved overhead and fixtures for new facilities and associated with the more extensive internal replacements. This produced savings in seasonal and full-time hiring process, saved water and wastewater expenses. potential workers' compensation costs and allowed management to view performance Goals for Upcoming Year before committing to a more permanent hire. • Reposition the tourism industry as a critical • Analyzed vehicle allocation and reduced the size economic driver; of the fleet; • Continue to build public/private partnerships • Reduced the overhead of the tourism that benefit the agency and help grow information centers by leasing the Thackerville Oklahoma's economy; Tourism Information Center to the Chickasaw • Develop new targeted products that enhance Nation. The 5-year lease will save the agency existing cultural, historical and natural assets approximately $1 million. and create new opportunities for growth ; • Eliminated programs that were either outdated • Ensure program expenditures are based on solid or did not meet the core mission of the agency. research and planning, and employ metrics to For example, the Travel Promotion Division evaluate effectiveness of major initiatives; tracked and analyzed declining call center • Restructure the PR/Media program to ensure volume for several years. After a 20% drop in increased earned media and industry visibility in FY-11 vs. FY-10, the call center was closed. As a Oklahoma and surrounding states; result, the agency realized an annual savings of • Expand partnerships with other state agencies $150,000, in addition to phone line costs. These to set joint goals and objectives that benefit monies were reinvested in TravelOK.com, which Oklahoma's citizenry. OTRD currently partners reaches 1,000,000 on-line users annually, with the Department of Transportation on the compared to the outdated call center, which tourism information centers, Heartland Flyer reached 20,000 annually. and highway signage; Scenic Byways; • Enacted pricing flexibility to improve state Parks' Department of Agriculture on Agritourism; competitive position, and initiated the use of Oklahoma Turnpike Authority on PikePass social media sales tools such as Groupon to distribution and the Glass House; Oklahoma stimulate off-season use of cabin and lodge Highway Patrol on public safety issues at state facilities. Last year, a total of 1,244 Groupon parks and tourism information centers; offers were purchased for 6 properties including Oklahoma Historical Society on historical and Greenleaf, Robbers Cave and Tenkiller cabins genealogical tourism; and the Department of and Lake Murray, Western Hills and Lakeview Commerce. lodges. The largest number of sales was in the • Employ new technologies that reflect changing Oklahoma City market area for Robbers Cave, social and cultural attitudes and increase access which produced 398 purchases. to tourism information; B-125 FY-2013 Executive Budget • Continue to help ensure the completion of the • Installed auto sensor restroom sink faucets at American Indian Cultural Center and Museum the travel information centers to conserve (AICCM); water consumption; • Begin purchasing CNG/bi-fuel vehicles as fleet • Suspended the ECO program and currently vehicles are replaced and create an seeking another entity to assume operation; infrastructure for fueling needs; and • Discover Oklahoma replaced full-time staff • Move the programming and development reporters with freelance reporters; and function for the official state tourism website, • Eliminated the Travel Promotion Division's TravelOK.com, in-house. This change will result community and tourism development positions, in substantial savings and provide the site with in an effort to reduce staffing costs. The agency more development time, flexibility and focus. is currently exploring partnership opportunities with the Department of Commerce to fulfill Major Agency Projects community development needs related to • Launch a new regional advertising campaign tourism. In June 2011, focus groups were conducted in five cities across the nation to examine public opinion of the state, awareness of its tourism opportunities and effectiveness of the state's branding. The findings showed that OTRD's advertising should employ a highly targeted regional strategy, with a major focus on the Dallas market. Further, the findings revealed that the most effective message must illustrate what is uniquely Oklahoma - what visitors find here cannot be found anywhere else in the nation. Utilizing the key findings of the study, new ads have been developed and will air in Spring 2012. • Implement the findings of the feasibility study of select state lodges The study was conducted by Oklahoma State University in 2011 and will be presented in early 2012 to the Oklahoma Tourism and Recreation Commission for review and possible action. • Kick off "Oklahoma Road Shows" To stimulate in-state travel, the agency is taking its travel show on the road to large Oklahoma employers. First on the list are: Devon Energy, Farmers Insurance and Blue Cross Blue Shield. Savings, Efficiencies and Shared Services in FY-2012 • Reduced spending across the board; • Reduced park overhead through early winterization of state parks; • Implemented fee increases at select state parks; • Transferred 7 state parks; • Transferred the operation of tourism information centers; • Eliminated the call center; B-126 FY-2013 Executive Budget Transportation Department recorded level of 797, and from the high of 1,168 in 2004. Providing greater safety on the highway Transportation Cabinet system with installation of the median barrier, both cable and concrete, as well as the installation of Historical Budget and FTE usable shoulder areas on the roadways. (in $000's) $2,500,000 3,000.0 2,500.0 Goals for Upcoming Year • $2,000,000 2,000.0 Continue to meet the schedule outlined by the $1,500,000 1,500.0 Eight Year Construction Work Plan; $1,000,000 1,000.0 • Provide assistance to the Congressional $500,000 500.0 delegation in an effort to resolve the $0 FY-2008 FY-2009 FY-2010 FY-2011 FY-2012 0.0 uncertainty of federal funding; and Appropriation $217,870 $207,691 $193,086 $114,771 $106,737 • Assist the Governor and legislative leadership to Total Budget $1,217,221 $1,755,217 $1,344,193 $2,018,435 $1,739,954 FTE 2,493.1 2,495.3 2,459.0 2,426.0 2,375.7 support the Bridge Plan initiative to virtually eliminate structurally deficient bridges within this decade. Mission The mission of the Oklahoma Department of Transportation (ODOT) is to provide a safe, Major Agency Projects economical and effective transportation network for ODOT continues toward a more effective and the people, commerce and communities of efficient transportation system. With that in mind Oklahoma. major projects is the realignment of the I-40 Crosstown facility in downtown Oklahoma City, the reconstruction of I-44 in Tulsa, the continued effort Programs to rehabilitate or replace structurally deficient • Railroads bridges, and to continue the rehabilitation effort of • Transit interstate highways in both urban and rural areas of • Waterways the state. • Transit Projects • Rail Projects Savings, Efficiencies and Shared Services in • Highway FY-2012 • Capital Outlay • ODOT continued to administer a self-imposed • Country Projects reduced employee Table of Organization which allows the agency to control costs; For more information about ODOT, visit their website. • Increased the amount of outsourcing effort in areas of highway maintenance and construction management; FY-2012 Budget by Program • Additional efficiencies were gained with the 3% implementation of Agile Assets as a Transit, Railroads, replacement for the 35 year old Maintenance 17% 23% Waterways and Projects Reporting System (MRS); and Highway • Implementation of some shared services Capital Outlay products with more expected in the future. County Projects 57% Accomplishments over Past Year ODOT was able to continue the reduction of the number of Structurally Deficient (SD) bridges on the state system. At calendar year end 2010 the number of SD bridges had dropped to 706 from the previous B-127 FY-2013 Executive Budget Treasurer, Office of the State (OST) • Increased usable work area in existing State Capitol office space, resulting in annual Finance and Revenue Cabinet reduction of more than $25,000 in office lease payments; Historical Budget and FTE • Established Investment Advisory Committee to (in $000's) obtain broad expertise in support of State's $300,000 80.0 investment strategies; $200,000 60.0 • Launched the Oklahoma Economic Report, 40.0 delivering Oklahomans reliable monthly $100,000 20.0 business and economic news; $0 FY-2008 FY-2009 FY-2010 FY-2011 FY-2012 0.0 • Shifted costs of approximately $262,000 Appropriation $4,669 $4,669 $6,024 $3,903 $3,630 associated with investing $2.1 billion of agency Total Budget $318,888 $195,314 $255,864 $177,959 $175,447 FTE 61.5 61.0 58.9 56.3 50.4 balances in the State's blended portfolio due to appropriations reductions; • Launched online reporting application for Mission unclaimed property allowing businesses to file The mission of the Office of the State Treasurer is to reports electronically. Remaining paper reports serve the people of Oklahoma by providing sound are electronically imaged for more efficient banking and investment services, reuniting access; individuals and businesses with their unclaimed • Awarded contract for use of single issue, property, and promoting economic opportunities in reloadable and instant issue debit cards in lieu a fiscally responsible and efficient manner while of paper warrants; and adhering to the highest professional and ethical • Maximized investment earnings by lowering standards. average daily liquidity. Programs Goals for Upcoming Year • Unclaimed Property • Continue to reduce agency's reliance on • Technology Improvements taxpayer money by distributing costs associated • Bonds and Coupons with investment services; • Identify, purchase and implement new treasury For more information about the State Treasurer's investment system that is necessary to improve Office visit the website. investment accounting and performance reporting and better manage liquidity, lower risk FY-2012 Budget by Program and increase earnings; 4% 3% General Operations • Establish a Local Government Investment Pool 8% 1% (LGIP) to assist public entities with low-cost Unclaimed Property investment services and competitive returns; Technology • Expand use of electronic receipts and payments Improvements by state agencies; Bonds and Coupons • Secure funding for the Oklahoma Medical Loan 84% Statewide Circuit Repayment Program; and Engineering • Maximize the number of scholarship recipients according to appropriated funds available. Accomplishments over Past Year Major Agency Projects • Replaced outdated and unsupported COBOL • Major projects during FY-2013 will focus on programming, resulting in more efficient, stable enhancement of core services – cash and efficient processing of state financial management & investment, banking services transactions; and agency services consolidation; • Increased efficiency by consolidating and • A Local Government Investment Pool (LGIP) will restructuring operations, resulting in reduction be developed to offer to political subdivisions of 11 positions and net savings of more than competitive returns at costs well below those $250,000; B-128 FY-2013 Executive Budget charged by the private sector, resulting in higher net earnings on public funds invested for state, county, school and municipal entities; • Banking services will be enhanced by expanding use of Remote Deposit Capture and increased use of debit cards in lieu of paper warrants for state agencies and other political subdivisions; • Offer state agencies the opportunity to collect payments through smart phone applications; • OST will transition its agency payables and receivables functions to the Office of State Finance to realize increased operational efficiencies; • The Unclaimed Property Division will expand use of the recently launched Internet online reporting application for businesses. The application further streamlines legal reporting requirements of businesses holding abandoned property and reduces paperwork and time required to complete reporting by both businesses and OST staff. • Work with OSF IT to increase security and functionality of essential operations through virtualization of desktop computer operations. Savings, Efficiencies and Shared Services in FY-2012 • Through transfer of information services responsibilities to OSF IT and upgrade and replacement of financial services software, staffing levels within the agency were reduced by 11 positions with savings of more than $250,000, and • Moving employees formerly housed in leased business space into reconfigured space inside the treasurer's existing offices in the Capitol building resulted in savings of more than $25,000 per year of taxpayer money. B-129 FY-2013 Executive Budget University Hospitals Authority (UHA) • $65 million of state and federally matched funds provided to OU Medical Center hospital, Health & Human Services Cabinet supporting 164,000 inpatient and outpatient occasions of service to the medically indigent Historical Budget and FTE and 3,000 Department of Corrections inmate $140,000 (in $000's) 12.0 occasions of service; $120,000 10.0 • Assisted in recruitment of oncology physicians, $100,000 faculty and researchers at the Peggy and Charles 8.0 $80,000 Stephenson Oklahoma Cancer Center; $60,000 6.0 • Neared completion of the Education Center 4.0 supporting clinical medical education on the $40,000 OUHSC campus; $20,000 2.0 • Provided facility and operational support of the $0 FY-08 FY-09 FY-10 FY-11 FY-12 0.0 Department of Pediatrics Child Study Center and Appropriation $41,865 $43,250 $30,688 $14,188 $38,446 Center on Child Abuse and Neglect; and Total Budget $111,810 $107,808 $110,550 $129,417 $122,355 • Provided operational support for the Oklahoma FTE 6.1 7.0 7.2 8.0 10.8 Institute for Disaster and Emergency Medicine, Dental College loan program and hearing Mission services for deaf and/or hard of hearing children The mission of the University Hospitals Authority is of Oklahoma. to be a catalyst for medical excellence, to support medical education and clinical research and to assure the best care available to all Oklahoma Goals for Upcoming Year citizens regardless of means while growing essential • Maintain support levels of previous year for alliances and maximizing utilization of state and Colleges of Medicine graduate medical federal resources. education programs and hospital graduate medical education program; • Maintain support levels of providing medical Programs care to the state's indigent population; UHA is responsible for the joint management of the • Complete the construction of the campus OU Medical Center and Children's Hospitals by education center; means of a Joint Operating Agreement with the • Complete the installation of the proton Health Care Authority Health Services of Oklahoma, accelerator and begin treating Oklahoma's Inc. and making yearly reports to the governor and pediatric cancer patients; legislature. • Complete repairs and upgrades of older For more information about UHA, visit their website. buildings and facilities for more productive and efficient use; Accomplishments over Past Year • Increase support of OU College of Medicine • $57 million of state and federally matched funds oncology services; and provided to Oklahoma's College of Medicine and • Begin programming and design of cancer College of Osteopathic Medicine supporting research facility on the OUHSC campus in resident and intern education, with $36.3 support of oncology service programs. million distributed to OSU and OU in Tulsa and $20.9 million to the OU campus in Oklahoma Major Agency Projects City; • Neurosciences services relocation and • $55 million of state and federally matched funds expansion provided to 13 Oklahoma hospitals, supporting • OB/GYN oncology expansion and service 820 total resident positions; $6 million of this upgrades total is distributed to rural hospitals with $31 • Oncology patient care and research expansion million to Oklahoma City hospitals and $18 • Faculty and research recruitment million to Tulsa hospitals. • Facility upgrades and repairs • Hospital bed tower expansion for inpatient services to include cancer inpatient beds, ICU beds and operating rooms B-130 FY-2013 Executive Budget • Campus way-finding and hospital parking expansion to accommodate increased demand Savings, Efficiencies and Shared Services in FY-2012 • Restructured agency staff and assignments and eliminated position to achieve salary and benefit savings; • Replacement and upgrade of inefficient energy systems reducing utility costs; and • Closing unoccupied space in older facility to reduce maintenance and energy costs. B-131 FY-2013 Executive Budget Veterans Affairs, Oklahoma Accomplishments over Past Year • Maintained availability of all beds for Department of (ODVA) admissions; Veterans Affairs Cabinet • Increased occupancy rate from a 96% average to a 98% average; Historical Budget and FTE • Faced with a substantial cut in general revenue, in $000's the agency has not had a furlough or lay-off; $160,000 2,000.0 $140,000 • Completed Phase I of the Sulphur Veterans $120,000 1,500.0 Center construction project; $100,000 • Completed patient charting, which will provide $80,000 1,000.0 ODVA with a system to record patient data with $60,000 the use of touch screen kiosks placed in each $40,000 500.0 veterans facility. The kiosks will allow nurses to $20,000 do on-the-spot review and updates of patient $- 0.0 FY-2008 FY-2009 FY-2010 FY-2011 FY-2012 conditions rather than entering them at a later Appropriation $40,283 $40,283 $37,261 $35,957 $34,699 Total Budget $144,526 $145,974 $159,426 $158,451 $157,247 time. FTE 1,854.8 1,881.4 1,931.1 1,879.9 1,824.3 • Approved the following capital projects for first priority on the State Homes Construction Mission program list (65% match was awarded and The mission of the Oklahoma Department of ODVA identified the state's 35% match): Veterans Affairs (ODVA) is to ensure all Oklahoma (1) Ardmore laundry, pharmacy, physical veterans and their families receive all benefits to therapy and lab; which they may be entitled and to provide excellent (2) Clinton's Food Service area, laundry and health services and long-term skilled care in a renovations; residential environment to all qualified veterans (3) Ardmore, Lawton and Claremore Nurse Call residing in the state. systems; (4) Geothermal system renovation at Norman Programs Center and Lawton Center. • Operation of seven long term care centers • Installation of a new generator at the Veterans located in Norman, Clinton, Ardmore, Sulphur, Center in Norman that provides service to the Claremore, Talihina and Lawton entire facility in the event of power failure. The • Veterans Claims and Benefit Administration agency is also working with OEC to acquire refunds when using emergency generator • State Accrediting during peak usage dates and hours during the For more information about ODVA, visit their summer months. website. • Implemented the new "My Way Cafe" in the dietary department at the Norman Veterans Center, where residents can order one meal FY-2012 Budget by Progam from a menu of items two days per week. 4% 2% 0% Nursing Care Goals for Upcoming Year Central Administration • Enhance efficiency of each division in an effort to utilize FTE in the most effective, cost-efficient Claims & Benefits manner; • Review all agency expenditures and seek ways State Accrediting 94% to affect cost-savings while continuing to deliver Agency services at current or improved levels; • Complete Feasibility Study of Adult Day Care in the agency; and • Continue to identify ways to improve the services provided to the residents by making changes utilizing the comments received on the ODVA Resident/Family Satisfaction Survey. B-132 FY-2013 Executive Budget Major Agency Projects • Complete construction on Clinton and Sulphur veterans centers; • Finalize all project work for the Geo-thermal system renovations at the Norman and Lawton Veterans centers; • Reduce Workers Compensation Costs and Exposures: o Contain medical injury compensations costs; o Reduce lost time injuries; o Introduce a comprehensive injury prevention and return-to-work policy; o Maintain continued compliance with workplace safety and health standards; o Provide Occupational and Health training courses for Agency Personnel. • Transmitting claims electronically to the Office of State Finance for payment; • Migrate VistA (Patient Medical Records) to a virtualized environment; and • Expand existing connection to federal USDVA to accommodate bi-directional VistA\CPRS connectivity, enhanced shared services and future solutions such as telemedicine. Savings, Efficiencies and Shared Services in FY-2012 • Implemented new workers compensation program and reduced expenditures; • Increased use of P-cards resulting in rebate of approximately $25,000/year. B-133 FY-2013 Executive Budget Water Resources Board (OWRB) o Permitting o Well Drillers Program Environment Cabinet o Technical Studies For more information about OWRB, visit their Appropriation History and FTE website. (in $000's) $9,000 120.0 $8,000 100.0 FY-2012 Budget by Program $7,000 $6,000 80.0 Administrative $5,000 60.0 11% Services $4,000 16% $3,000 40.0 Office of Secretary of $2,000 Environment 20.0 12% $1,000 Water Quality $0 0.0 FY-2008 FY-2009 FY-2010 FY-2011 FY-2012 Appropriation $6,802 $6,802 $8,036 $5,699 $5,500 11% Financial Assistance 50% FTE 96.0 93.4 90.0 84.4 91.9 Planning and *Beginning in FY-2011, REAP appropriations were no longer Management passed through OWRB. Total Budget (in $000's) Accomplishments over Past Year • Completed the Oklahoma Comprehensive Water $900,000 Plan (a 5-year, approximately $12 million effort); $800,000 $700,000 • Addressed Oklahoma's water and wastewater $600,000 infrastructure needs by: $500,000 o Issuing bonds (2 SRF and 1 FAP) totaling $400,000 $300,000 $150 million and $200,000 o Closing/awarding 55 loans and grants $100,000 totaling $209.3 million; $0 FY-2008 FY-2009 FY-2010 FY-2011 FY-2012 • Completed the Arbuckle-Simpson aquifer yield Total Budget $427,158 $506,897 $839,393 $439,216 $468,986 determination and Canadian River Stream Water Allocation Model studies, which will allow scientifically-based water rights allocation and Mission drought management to improve water supply To enhance the quality of life for Oklahomans by reliability; managing, protecting and improving the state's • Assisted a record number of water users in water resources to ensure clean, safe, and reliable obtaining water rights and contending with water supplies, a strong economy, and a healthy record drought conditions, by handling over environment. 2,728 permit applications for the oil and gas industry, irrigators and others and fielding over Programs 300 drought-related calls; • Water Quality • Secured $1 million in new Federal funds that will o Standards be passed through to local communities and o Lakes engineering firms for floodplain mapping within o Monitoring the Grand Lake and Canadian River systems; • Financial Assistance • Dedicated increased federal dam safety o Clean Water State Revolving Fund outreach funding to inform communities with o Drinking Water State Revolving Fund "high hazard" classified dams, through o Bond Loan Program workshops, technical publications and dam • Planning and Management breach studies; and o Compacts • Completed installation phase for the "Green o Floodplain Management Project" EPA funded through the American o Dam Safety Recovery and Reinvestment Act of 2009, for o Comprehensive Water Plan Thunderbird Lake in Norman, OK, which will B-134 FY-2013 Executive Budget target water quality impairments for the lake 0.037 mg/L total phosphorus criterion that and reduce treatment costs for Norman, Del City protects Oklahoma's Scenic Rivers; & Midwest City. • Implement a new groundwater monitoring program in the monitoring and assessment Goals for Upcoming Year section and complete routine monitoring of • Implementation of the Oklahoma Oklahoma's lakes and streams encompassing Comprehensive Water Plan according to the 120 stream sites and 32 lakes state-wide; and findings and recommendations contained • Complete Eucha and Ft. Cobb Lakes 319 Best therein and as directed by statute; Management Practice (BMP) implementation to • Addressing Oklahoma's $82 billion water and mitigate water quality impairments. wastewater infrastructure needs by: • Hydrologic Studies - $1.2 million annually to Major Agency Projects complete by 2022 the growing backlog of • Oklahoma Comprehensive Water Plan statutorily-required hydrologic studies and 20- During the final year of development of the 2012 year updates and stream water allocation Update of the Oklahoma Comprehensive Water studies to accurately determine water Plan, the OWRB and its planning partners continued availability for use statewide, manage water to solicit important input from stakeholders, citizens rights under various drought scenarios and and others with a vested interest in the future of forecast potential interference between users Oklahoma's water resources. Beginning in April, the and impacts of potential water transfers; OWRB initiated a final round of regional feedback • "High Hazard-Potential" Dam Safety Technical and implementation meetings to gather comments Assistance - To mitigate catastrophic flooding and suggestions on the draft Water Plan and its hazards and protect lives, property, and water various components. Each meeting, open to the supplies, ($250,000 per year is needed for 10 general public, included a unique session allowing years to perform dam breach inundation public water supply providers to verify local mapping, emergency action planning and infrastructure data and related water supply and education activities that support the State Dam demand information collected over four years of Safety Program for non-NRCS dams, with a OCWP analyses. A second session provided citizens priority on "high hazard-potential" dams where and other stakeholders with an opportunity to significant downstream development has contribute comments on draft water policy occurred since construction); recommendations, including implementation • Complete the Garber-Wellington aquifer yield strategies. study for central Oklahoma businesses and communities; Throughout 2011, OWRB staff and partners assembled the wealth of OCWP technical data and • Finalize and launch a new online water right information into 13 Watershed Planning Region permit application to expedite processing; Reports, including water supply/demand • Assist owners of at least 20 "high-hazard" assessments, future supply challenges and potential classified dams with emergency action plans and options to secure water for planning basins and breach inundation mapping; regions through the next 50 years and beyond. • Increase annual water use reports submittal by Serving as an indispensable technical resource for water right holders statewide. The reports are water providers, policy makers and water users in used to establish demands on the state's making informed decisions concerning future resources. regional water use and management, considerable • Reduce known unauthorized water use by 95 attention was afforded to creating both sensible and percent through outreach and complaint functional planning documents. Following a public response, to protect water quality and quantity review and comment period, each report was for permitted users; modified, corrected and refined prior to final • Identify local cost match for FFY-2013 FEMA collective approval of all 13 Watershed Planning Cooperating Technical Partnership program to Region Reports by the nine-member Water Board in meet community floodplain mapping needs at October. the local level; • Complete federally required triennial Water As the cornerstone policy product of the Oklahoma Quality Standards revision and re-evaluate the Comprehensive Water Plan process, Board members B-135 FY-2013 Executive Budget dedicated four monthly meetings to detailed review publishing of the OCWP and the enhancement and discussion of draft Oklahoma Comprehensive of tools for local water planning efforts. Water Plan Water Policy Recommendations • Privatization implemented for the press release culminating from extensive citizen involvement since functions in Financial Assistance, as well as initiation of the update in 2006. In particular, from some accounting efforts; June through September, members deliberated, • Evaluated staffing needs and added the debated and prioritized recommendations for Environmental Technical Series, allowing lower immediate or prompt implementation and/or entry level hiring, reducing the cost to the legislative consideration. Following formal public agency/division for hiring environmental comment, the final Oklahoma Comprehensive Water technicians; Plan Executive Report—featuring both priority and • Electronic notification, where allowed, has supporting recommendations, as well as an reduced the costs for meeting federal and state extensive summary of technical work—was formally Public Notice requirements for rule making; approved by the nine-member Water Board on • Expedited process to reduce large pending October 17. transfers-of-ownership backlog which will enable new land owners to secure legal water The 2012 Oklahoma Comprehensive Water Plan rights; Update was unveiled and presented at the Governor's Water Conference and Research • Worked with water users, particularly Symposium on October 18-19. The Water Plan will agriculture industry, to simplify forms and be submitted to the governor and State Legislature created GIS applications to expedite permitting in February 2012. processes and increase records access to the public; • Joint Legislative Water Committee In June, House Speaker Kris Steele and Senate • Partnered through Interagency Agreement with President Pro Tempore Brian Bingman announced GRDA on dissolved oxygen (D.O.) monitoring, Ok the formation of a 16-member joint legislative Dept. of Wildlife Conservation (ODWC) for toxics committee to review the 2012 Oklahoma monitoring, and Ok Dept of Environmental Comprehensive Water Plan Update and facilitate the Quality on supplemental environmental projects development of long-range water policy for with C.P. Kelco, which helped leverage and Oklahoma. Numerous meetings were held in the streamline government functions; and legislative interim, and OWRB staff and others were • Partnered to provide cost-sharing for federally invited to provide information and opinions about funded projects with ODWC on Ft. Cobb Lake, ongoing activities and draft OCWP documents. Joint with the City of Tulsa on Lake Eucha, with OCC Legislative Water Committee co-chairmen Rep. Phil and OSU on Oxbow Lake Phase II & III, with DEQ Richardson and Sen. Brian Crain provided direction for sedimentation surveys of Ft Gibson Lake for for the bipartisan and geographically diverse Total Maximum Daily Load modeling, and with membership. the City of Oklahoma City on projects to • Transition to PeopleSoft Phase 2 Grants Projects continue mitigation of impaired water quality of and Contracts; and Atoka and Stanley Draper Lakes. • Begin work on the Rush Springs aquifer study and on the twenty year update for the North Canadian River Alluvium and Terrace aquifer study and Washita River Allocation Model. Savings, Efficiencies and Shared Services in FY-2012 • The OWRB continues to seek opportunities to leverage the state's investment in the Oklahoma Comprehensive Water Plan with federal dollars. The agency successfully secured approximately $525,000 of federal money to assist in completion of the water plan and to defray the cost of certain expenses such as the printing and B-136 FY-2013 Executive Budget Wildlife Conservation, Oklahoma • Completed the construction of the state-of-the art Paddlefish Research and Processing Center Department of (ODWC) near Miami in Ottawa County; and Environment Cabinet • Acquired the Operation Game Thief Trailer to be used at public programs and events to educate sportsmen on Department programs and to Historical Budget and FTE (in $000's) education the public regarding illegal methods $58,000 360.0 $56,000 350.0 of taking wildlife and the associated $54,000 340.0 consequences. $52,000 330.0 $50,000 $48,000 320.0 310.0 Goals for Upcoming Year $46,000 300.0 • Seek additional opportunities for long-term $44,000 290.0 $42,000 280.0 lease agreements with the Commissioners of FY-2008 FY-2009 FY-2010 FY-2011 FY-2012 Total Budget $49,902 $48,056 $57,157 $54,873 $50,766 the Land Office; FTE 342.3 345.7 346.9 346.3 355.8 • Work with legislative task force and the United *Wildlife Department is a non-appropriated agency States Fish & Wildlife Service to delay listing process of the Lesser Prairie Chicken; Mission • Identify and pursue short and long term To manage Oklahoma's wildlife resources and solutions to preserve the lower Illinois River habitat to provide scientific, educational, aesthetic, trout fishery that began in 1952. During the economic and recreational benefits for present and summer of 2011 trout stockings were future generations of hunters, anglers and others suspended because water was not available to who appreciate wildlife. maintain the fishery. • Complete the repairs to the American Horse Programs Lake Dam in Blain County that was damaged due • Wildlife to the flood events in 2007; • Fisheries • Migrate the agency email to Oklahoma Office of • Law Enforcement State Finance servers; and • Information and Education • Convert the existing financial management For more information about ODWC, visit their programs to Phase II People Soft. website. Major Agency Projects FY-12 BUDGET BY PROGRAM • Research projects have been developed and initiated for the Lesser Prairie Chicken, bobwhite Administration quail and bear; 5% 14% Wildlife • Durant Hatchery Renovation will begin in 2012. 23% This facility is the largest of four fish hatcheries Fisheries that provide fish stocking into public and private 31% waters. Law Enforcement 27% Information & Savings, Efficiencies and Shared Services in Education FY-2012 • Went paperless for accounts payable – invested Accomplishments over Past Year in and began scanning all invoices and associated paperwork for bills to be paid; • Acquired 2 new Wildlife Management Areas to provide public access for hunting and fishing; • Began setting up vendors for payment to be processed electronically: • Opened the Outdoor Training and Education o Cost savings will come from reduced Center, part of the 700 acre Arcadia postage, paper and printing costs; Conservation Education Area; • Purchased equipment and software to conduct • Completed Lake Elmer Renovation, 60 acre lake meetings by video conferencing that will save in Kingfisher County in order to improve the travel costs. quality of the fishery as well as the public access for fishing; B-137 FY-2013 Executive Budget Will Rogers Memorial Commission Goals for Upcoming Year Commerce and Tourism Cabinet • Increase the annual recorded attendance at Will Rogers Birthplace Ranch by 3 percent; • Open the new exhibit, "The Final Journey," by Historical Budget and FTE st July 1 , 2012; in $ 000's • Complete inventory cataloging of the museums' $1,200 14.0 st $1,000 12.0 collections by December 31 , 2012; $800 10.0 8.0 • Initiate remote access to the archival catalog by th $600 6.0 June 30 , 2012; $400 4.0 $200 2.0 • Develop at least two new partnerships to share $0 FY-2008 FY-2009 FY-2010 FY-2011 FY-2012 0.0 and communicate the legacy of Will Rogers; Appropriation $1,084 $934 $803 $745 $740 • Gross $100,000 in revenue from admission fees; Total Budget FTE $1,058 12.1 $959 10.1 $799 9.6 $772 9.1 $840 9.2 • Increase by 10 percent the number of known new Will Rogers-related films, publications, performances and research inquiries. Mission The mission of the Will Rogers Memorial Major Agency Projects Commission is to collect, preserve and share the life, • Implementation of admissions fees at the Will wisdom and humor of Will Rogers for all Rogers Memorial Museum for the first time in generations. 73 years; • "The Final Journey," a new exhibit now in the Programs final stages of design and planning that will For more information about Will Rogers Memorial relate and interpret the story of Will Rogers's Commission, visit their website. and Wiley Post's ill-fated journey to Alaska through a multi-dimensional, interactive 100% of the budget for the Will Roger Memorial experience (targeted opening date: July 1st, Commission is for Museum operations. The chart 2012); below shows the breakdown of appropriated and • Redesign the West Gallery of the Memorial revolving funds for FY-2012. Museum, which will include an orientation to the life of Will Rogers; Accomplishments over Past Year • Power-wash and apply preservative treatments • Increased the recorded attendance at the Will to the exterior walls of the Will Rogers Rogers Memorial Museum, in Claremore, OK by Memorial Museum; and 13.8 percent from FY-2010 to FY-2011; • Continuation of the project to digitize the • Developed two new partnerships to share and previously published and unpublished writings communicate the legacy of Will Rogers by of Will Rogers and provide online access to the publishing daily quotes in the Tulsa World and, same in a searchable format. providing quotes for media use through the Oklahoma Press Association; Savings, Efficiencies and Shared Services in • Increased the number of known new Will FY-2012 Rogers-related films, publications, performances Savings of financial resources and time have been and research inquiries from 90 to 609 in realized through the support services provided by FY-2011; the Agency Business Services of the Office of State • Completed the digitization of and online access Finance. Staff must still regularly perform some to the six volumes of Will Rogers Weekly accounting, budgeting and reporting tasks, but the Articles; and hours saved through the partnership with ABS have • Increased the number of declared "friends" on allowed the one full-time and one part-time staff the Will Rogers Facebook page from 171 in FY- members to perform and complete other tasks. 2010 to 1,235 in FY-2011. B-138 FY-2013 Executive Budget Workers' reduction in overall cost of medical care for injured workers. Compensation Court (OWCC) Judiciary Cabinet Goals for Upcoming Year • Review 'Oklahoma Treatment Guidelines' Historical Budget and FTE produced by the Physician Advisory Committee upon receipt of recommendations from the (in $000's) Advisory Council on Workers' Compensation as $8,000 100.0 $7,000 directed by 85 O.S., Section 373; 80.0 $6,000 $5,000 60.0 • Develop a program by April 1, 2012 that $4,000 $3,000 40.0 provides annual training for self-insured $2,000 20.0 employers and workers' compensation claim $1,000 $0 0.0 representatives, as mandated by 85 O.S., FY-2008 FY-2009 FY-2010 FY-2011 FY-2012 Appropriation $5,242 $5,260 $4,677 $4,349 $4,197 Section 320. Total Budget $6,816 $7,128 $6,745 $6,579 $6,422 FTE 82.2 80.7 76.7 72.5 73.1 Major Agency Projects Implement electronic data interchange ("EDI") by Mission July 1, 2012 for the purpose of providing relevant To ensure fair and timely procedures for the data about the workers' compensation system and informal and formal resolution of disputes and delivery of benefits to injured workers, as mandated identification of issues involving work related issues. by 85 O.S., Section 367. Programs Savings, Efficiencies and Shared Services in • Data Processing FY-2012 • Court Operations The Court redistributed job functions in an effort to continue to reduce staffing through attrition. For more information about OWCC, visit their website. FY-2012 Budget by Program 89% General Court Operations Data Processing 11% Accomplishments over Past Year • Following major workers' compensation system reforms enacted effective August 26, 2011, the Court amended forms, implemented processes and participated in educational seminars regarding the changes; • The Court adopted and implemented new law mandates, including a new workers' compensation fee schedule, effective January 1, 2012 which is anticipated to result in a 5% B-139 State Budget Information Oklahoma State Budget Process State Revenues Constitutional Reserve Fund Appropriation History Higher Education Allocation Non-Appropriated Agency Budget and FTE FY-2013 Executive Budget THE BUDGET CYCLE STATE FISCAL YEAR IS JULY 1 - JUNE 30 June Sept May Mar Nov Aug Dec July Fe b Apr Oct Jan 1. Agencies reveiw program needs and prepare Budget Requests and July 1 - Oct 1 Strategic Plans. 2. Agencies submit Budget Requests. Strategic Plans are submitted every Oct 1 even numbered year. 3. Office of State Finance reviews Budget Requests and Strategic Plans for Oct - Nov development of the Executive Budget Book. 4. December Equalization Board Meeting - expenditure authority is the approved Dec basis for the Executive Budget. 5. Submission of Executive Budget to the Legislature. Feb Legislative session begins. 6. Feb Equalization Board - expenditure authority is approved basis for Legislative Feb Appropriations and Governor's action 7. Legislature reviews agency budgets and finalizes appropriation recommendations. Feb - May 8. Governor's action on Appropriation Bills Feb - Mid-June 9. June Equaliztion Board Meeting - revenue and expenditure authority adjusted to June incorporate statutory changes. 10. Budget Work Programs submitted to the Office of State Finance for approval July by July 1 C-1 FY-2013 Executive Budget Oklahoma State Budget Process – State Fiscal Year is July 1 through June 30. 1. Agencies review program performance and financial needs for preparation of the Budget Request and Strategic Plan 2. The Budget Request is the legal document which contains all financial and program information for each agency including a listing of all requests for additional state funds and changes in revolving or federal funds. Budget Requests must be submitted October 1 of every year under Section 34.36 of Title 62. Agency Strategic Plans include each agency's mission, goals and performance measures within a five year time line. Section 45.3 of Title 62 requires strategic plans to be submitted October 1 of every even-numbered year. 3. The Office of State Finance Budget Division reviews agency budget requests and holds agency budget request hearings for development of the Executive Budget. 4. December Equalization Board Meeting – The Equalization Board is the constitutional body responsible for setting revenue and expenditure authority for the Governor and Legislature (Sec. 23 Art. 10 of Oklahoma Constitution). The expenditure authority approved at this meeting is the amount used for development of the Executive Budget Book. 5. Submission of Executive Budget – The Governor is required to submit an Executive Budget to the Legislature on the first Monday of each regular legislative session. The budget must be balanced using the December Equalization Board amounts. 6. February Equalization Board Meeting – The Board is constitutionally required under Section 23 of Article 10 to meet again and incorporate economic adjustments to the revenue and expenditure authority. The limit approved at this meeting constitutes the limit for Legislative appropriations action. 7. Legislative Appropriations Process – The appropriations subcommittees and legislative staff of each house review agency budgets, budget requests and pass appropriation bills. 8. Governor acts, within constitutional time lines set forth in Sections 11 and 12 of Article 6 of the Oklahoma Constitution, to sign, veto or pocket veto appropriation bills. 9. June Equalization Board Meeting – The board is authorized in Section 23 of Article 10 of the Oklahoma Constitution to meet and incorporate statutory changes that increase or decrease revenue and expenditure authority for the coming fiscal year. 10. Agency Budget Work Programs are required under Section 34.42 of Title 62 and serve as the official plan of how the agency intends to utilize available funds to accomplish statutory duties and responsibilities. The document is due on June 1, or as close thereafter as possible, and is approved by July 1. C-2 Oklahoma State Budget Process State Equalization Board The Oklahoma Constitution provides for a number of checks and balances to ensure the Governor and Legislature maintain a balanced budget every year. One of the most important provisions is Section 23 of Article 10 which outlines the framework for how Oklahoma sustains a balanced budget. This section designates the State Board of Equalization as the body responsible for establishing expenditure limits for the Governor and the Legislature. The Board of Equalization is comprised of the Governor, Lieutenant Governor, Treasurer, Auditor and Inspector, Attorney General, Superintendent of Public Instruction and Secretary of Agriculture. Pursuant to Section 23, the Equalization Board must meet at least two times every fiscal year: • "no more than 45 days but no less than 35 days before the start of the legislative session" (sometime in late December or early January); and • "within five days after the monthly apportionment in February of each year". The Board can only meet again and adjust revenue estimates if the Legislature and Governor enact laws during regular or special session that reduce or increase revenue certified by the board, transfer cash from one fund to another or establish a new certified appropriated fund. In practice, the Equalization Board meets in June to incorporate legislative changes enacted during the session and to re-certify revenue available for the coming fiscal year. The benefit of this approach is that both the executive branch and legislative body are required to use the same revenue estimate and expenditure limit. State expenditures passed by the Legislature and enacted by the Governor cannot exceed the amount of funds certified and authorized by the Board. The Office of State Finance, which staffs the Board, compiles revenue projections from various revenue collecting agencies throughout the state, analyzes the information and presents the information to the Board for its consideration and approval. Projections for the General Revenue Fund which makes up more than 80% of total state appropriated spending are estimated utilizing a state economic model developed by Oklahoma State University and modified to fit the state's customized needs by Tax Commission staff. Revenue estimates presented to the Board are based on current and prior year collection trends, economic forecasts, federal tax law changes and other foreseeable factors. Revenue certified and authorized at the December Board meeting serves as the basis for the Governor's Executive Budget. The Board considers possible revisions to the December estimate at the February meeting. Revisions to the December estimate are based on economic changes which have been noted since that time, which may increase or decrease anticipated revenue collections. The estimate approved at this meeting sets the limit on which legislative appropriations are based. State Revenues and Expenditures Spending Limits Oklahomans believe in responsible budgeting and limiting state expenditure growth to reasonable levels. This philosophy is cemented in paragraph 1 of Section 23 in Article 10 of the Constitution. Increases in Legislative appropriations in any year are limited to no more than 12% more than the preceding year's level, adjusted for inflation. FY-2013 Executive Budget Paragraph 1 of Section 23 provides an additional limit for Oklahoma's state budget. This paragraph limits expenditures of certified funds to 95% of the Equalization Board estimate. This internal safeguard protects agency budgets from mild fluctuations in revenues in the event revenues do not meet the 100% estimate. Certain statutory revolving funds are also included in the executive and legislative expenditure authority considered by the Equalization Board. Estimates for revolving funds are included for informational purposes. The Equalization Board does not have to approve them since they are not certified funds. Unlike certified funds, the Governor and Legislature can spend 100% of the revolving fund estimate. There are seven revolving fund estimates that are included in the executive and legislative expenditure authority. Revenues from four of the six funds are specifically dedicated to education purposes. Funds from the Tobacco Settlement Fund are directed for health services; the Judicial Fund is directed for district court operations; and the State Transportation Fund is directed to the Oklahoma Department of Transportation. Cash Management Another internal budget control is provided in Section 34.54 of Title 62 of the Oklahoma Statutes which creates the Cash Flow Reserve Fund (CFRF). The CFRF is used for two purposes: (1) to make allocations to agencies in July since the General Revenue Fund (GRF) for that year has no collections until the end of July, and (2) to ensure that each monthly allocation of revenue to agencies is equal to one-twelfth of the money appropriated by the Legislature. This second purpose is intended to protect State agencies from variation in monthly revenue collection patterns and in practice the CFRF is used to make up the difference between actual collections in a month and the required allocations for that month. Money is deposited into the Cash Flow Reserve Fund for the next fiscal year from current year General Revenue Fund collections that are in excess of the amount appropriated from the fund. The limit on deposits into the Cash Flow Reserve Fund is 10% of the amount certified by the Board of Equalization as available for appropriation from the General Revenue Fund for the next fiscal year. General Revenue Fund collections that are in excess of the certified estimate cannot be used to make deposits to the Cash Flow Reserve Fund as those monies are directed elsewhere according to the State Constitution. Any excess General Revenue Fund collections for the current year after the Cash Flow Reserve Fund for the next year has been funded are carried forward as cash that is available for appropriation by the Legislature. Budget Stabilization A portion of the revenue collected in excess of 100% of the certified GRF estimate is deposited in the Constitutional Reserve Fund (CRF), known as the Rainy Day Fund, at the end of the fiscal year. Deposits into the CRF are limited to 15% of the certified actual collections to the GRF for the preceding fiscal year. The CRF can be accessed for three different and distinct purposes: emergencies, future year budget stabilization, and current year budget stabilization. Up to 25% of the fund may be appropriated upon a declaration of an emergency by the Governor with two-thirds legislative concurrence or three-fourths of both the House and Senate. Up to three- eighths of the CRF may be appropriated to make up any decline in revenue certified as available for appropriation by the Board of Equalization from one year to the next. The amount can not exceed the decline in certified revenue. The final three-eighths of the CRF may be appropriated to address a current year revenue shortfall. To access this money, the BOE must determine that a revenue failure has occurred in the GRF and appropriations from the CRF for this purpose are limited to the amount of the shortfall. A Constitutional provision also exists to provide incentive payments of up to $10 million to support retention of at-risk manufacturing entities under carefully limited circumstances. C-4 FY-2013 Executive Budget Revenue Shortfalls The Director of the Office of State Finance (OSF) is statutorily charged with making allotments to agencies to control expenditures. State law also requires the State's budget to remain in balance every fiscal year. Oklahoma is barred from expending more money than it collects in a given year. To ensure that revenues are sufficient to meet the appropriations specified by the Legislature, OSF closely monitors collections throughout the year. The allocation of appropriated monies to agencies occurs on the Tuesday following the second Monday of every month during a fiscal year. During times of economic recession state revenue collections can fall below the level of appropriations. Thus, limiting appropriations to only 95% of estimated collections is an insufficient measure to ensure the state maintains a balanced budget during times of severe economic distress. Title 62, Section 34.49 of the Oklahoma Statutes reads, in part: "At the end of any fiscal year, the entire amount appropriated to any agency must be allotted to the agency by the Director of the Office of State Finance, except where the estimated budget resources during any fiscal year are insufficient to pay all of the appropriations of the state in full for such year. The Director of the Office of State Finance shall not allot to any agency during any fiscal year, an amount which will be in excess of the amount of revenue collected and allocated to appropriations made to such agency. In the event of a failure of revenue, the Director of the Office of Finance shall control the allotment to prevent obligations being incurred in excess of the revenue to be collected. However, within each state fund where a revenue failure occurs, the Director of the Office of State Finance shall make all reductions apply to each state agency or special appropriation made by the State Legislature, in the ratio that its total appropriation for that fiscal year bears to the total of all appropriations for that fiscal year, as provided in Section 23, Article 10, of the Oklahoma Constitution." This directs the Office of State Finance to allocate all of the money appropriated to state agencies, unless revenue collections are less than the amount appropriated. When this occurs, OSF is required by this statute to reduce the allocations to agencies to no more than the amount of revenue collected. Further, the reduction in allocations is to be effected upon all agencies receiving money from the fund in which the failure occurs. Each agency receives a proportional share of the reduction based on their share of appropriations compared to the total appropriations from the fund. Executive and Legislative Appropriations Process Executive Budget The Governor sets the tone for state budget recommendations with the submission of the Executive Budget on the first Monday in February of each regular legislative session. Section 34.37 of Title 62 requires the Governor to submit a balanced budget with detailed revenue and expenditure proposals to the presiding officer of each house. The Director of State Finance is required to prepare the document after reviewing state agency budgets, requests and developing recommendations. The proposals outlined in the Governor's Executive Budget Book serve as the Governor's fiscal and policy priorities for the year. Legislative Process The Legislature reviews the Executive Budget and works with the Governor throughout the session to enact a balanced budget. Establishing the state budget is the responsibility of the appropriations committees of the Senate and the House of Representatives. The committees of each house work through appropriation C-5 FY-2013 Executive Budget subcommittees which are categorized by specific budget areas such as general government, education, health, and safety and security. Subcommittees review agency budgets, requests for additional funding and the Governor's recommendations. The General Appropriations (GA) Bill is a method to provide a base level of funding. This provision is a safeguard to ensure state government programs and services do not shut down in the event the Legislature and the Governor are unable to agree on a budget. Historically, general appropriation bills are passed in March or April of the regular legislative session. Section 34.86 of Title 62, passed during the 2003 session, requires the Legislature to present an appropriation bill to fully fund common education to the Governor at least 25 days prior to April 10 (subsection E of Section 6-101 of Title 70) but not later than April 1. Adjustments to increase or decrease the amount may still be made by the Legislature. Appropriation decisions for agencies are typically not finalized until April or May when the General Conference Committee on Appropriations, or GCCA, is convened. The primary difference between an appropriation subcommittee of the House or Senate and the GCCA is that the GCCA is comprised of both House and Senate members. Before beginning the GCCA process, the House and Senate agree to allocate a certain amount of available funding to each GCCA subcommittee. Before a formal appropriations bill is presented to either legislative body, the two houses must work together in GCCA, negotiate spending priorities and produce a unified budget together. Appropriations bills may be written for individual agencies or groups of agencies that are within the same subject area such as education. In addition to appropriating funds for the coming fiscal year, appropriation bills also include agency spending limits, total personnel hiring limits, and the maximum salaries of directors. If the bills are approved by a majority of both houses, the appropriation bill is sent to the Governor. All legislation, including appropriation bills become effective 90 days after the end of the legislative session or later if a later effective date is specified. Legislation may become effective earlier if passed with an emergency clause. For an emergency clause to be enacted, two-thirds of each body must approve the emergency clause through a separate vote on the bill. Governor's Action The Oklahoma Constitution, Section 11 of Article 6, provides the Governor five working days, excluding Sundays, to enact or veto all or part of an appropriations bill while the Legislature is in regular session. If the Governor does not sign or veto a bill within five days, a bill automatically becomes law. The Governor has 15 working days to sign or veto a bill after the regular session has adjourned. Any bill presented to the Governor within five days of the end of the regular legislative session must be acted upon with the 15 days also. In contrast to actions taken during session, if the Governor does not sign or veto a bill within the 15 working days after session, the bill fails to become law. This is also referred to as a pocket veto. In addition to these powers, Section 12 of Article 6 of the Oklahoma Constitution gives the Governor the authority to disapprove an entire appropriations bill or any item or single appropriation within the bill. This line-item veto power is one manner by which the Governor exercises control of state budget appropriations. Vetoes may be overridden by two-thirds majority of each house for bills with no emergency clause and by three- fourths majority of each house for bills with an emergency clause. C-6 FY-2013 Executive Budget Funds Subject to Appropriation The State Board of Equalization, in accordance with Section 23, Article X of the Oklahoma Constitution, annually certifies the following funds as available for appropriation. Each of these funds is identified in the accounting structure with a three-digit code. The first two digits uniquely identify the fund. The last digit represents the year the funds were collected (e.g. "190" would be the General Revenue Fund collected in FY-2010). General Revenue Fund (Fund 19X): Income to this fund is from state taxes, fees, regulatory functions, and income on money and property. Approximately one-half of all state revenue is deposited to this fund. Funds are appropriated for the operation of state government and other purposes specified by the Legislature. (Article 10, Section 2) Council on Law Enforcement Education and Training (CLEET) Fund (Fund 58X): Income is derived from a penalty assessment fee. Any person penalized for violating Oklahoma law pays a penalty assessment. Income is dedicated to peace officer training. (Title 20, Section 1313.2; effective November 1, 1988) Commissioners of the Land Office Fund (Fund 51X): This fund was created to receive revenue collected from surface leasing of lands managed by the Commissioners of the Land Office and 6 percent of the revenue generated from the Common School Fund, the Education Institutions Fund, the University of Oklahoma Fund, the University Preparatory School Fund, the Oklahoma State University Fund, the Public Building Fund, and the Greer 33 Fund. Funds are used for administrative costs of the Commissioners of the Land Office. Funds not used for administrative costs of the Commissioners of the Land Office are allocated to public schools. (Title 64, Section 1009; effective July 1, 1992) Mineral Leasing Fund (Fund 55X): Income to this fund is from a share of lease sales and royalty payments on oil and gas production on federal lands within the state. Funds are used for the financial support of public schools. (Title 62, Section 41.8; effective 1920) Special Occupational Health and Safety Fund (Fund 54X): Each insurance carrier writing Workers' Compensation Insurance in this state, the State Insurance Fund, and each self-insured employer authorized to make workers compensation payments directly to employees pays a sum equal to three-fourths of 1 percent of the total workers compensation losses, excluding medical payments and temporary total disability compensation. Funds are used exclusively for the operation and administration of the Occupational Health and Safety Standards Act of 1970 and other necessary expenses of the Department of Labor. (Title 40, Section 417.1; effective July 1, 1986) Public Building Fund (Fund 11X): Income to the fund is from portions of leases, sales, rentals and royalties of lands set aside for public building purposes by the state's Enabling Act (Section 33) and lands granted in lieu thereof, under the management of the Commissioners of the Land Office. Funds are appropriated for major maintenance and capital improvements of public facilities. (Title 64, Section 1079; effective 1910) Oklahoma Education Lottery Trust Fund (Fund 38X): In November of 2004, voters passed State Question 706 which established this fund as one available for appropriation by the Legislature for the purposes of common education, higher education, and career technology education. Revenue deposited in the fund comes from net proceeds generated by the Oklahoma Lottery. Agency Budgets The state's budget cycle can be divided into three areas: • Agency Budget Work Programs • Agency Strategic Plans • Agency Budget Request C-7 FY-2013 Executive Budget The state's budget is prepared on a cash basis utilizing encumbrance accounting. Encumbrances represent executed but unperformed purchase orders. In the State's Comprehensive Annual Financial Report (CAFR) encumbrances are recorded as: (1) expenditures for budgetary purposes if expected to be presented for payment by November 15, following the end of the fiscal year and, (2) reservations of fund balance for GAAP purposes. Budget Work Programs Oklahoma statutes provide the legal framework under which state agencies budget and expend funds in a responsible manner. Section 34.42 of Title 62 requires every agency to submit a balanced budget on the first day in June or soon thereafter. Funds must be budgeted by program category and must conform to program categories and expenditure limits placed in law. Appropriation bills set maximum limits on the amount of state appropriated funds, revolving funds and federal funds that each program may budget and spend for the fiscal year. Maximum limits for personnel or full-time- equivalent (FTE) personnel, lease-purchase expenditures and director salaries are also defined in statute. Budget work programs must work within these parameters to provide a plan on how the agency will utilize all state, revolving and federal funds for the fiscal year. Work programs are reviewed by the Budget Division of OSF and the approved work program serves as a basis for the subsequent allotment of funds. Certified funds such as the General Revenue Fund are allotted to agencies on a monthly basis and cash appropriations are appropriated in a lump sum. Budget Work Programs can be revised at any time during the fiscal year if justified. Revisions can be incorporated within various expenditure, full-time- equivalent employee and transfer limits. Agencies are allowed under law (Section 34.52 of Title 62) to transfer up to a maximum of 25% of funds between line-items. The Contingency Review Board can approve transfers between line-items up to 40%. All transfers are subject to review by the Joint Legislative Committee on Budget and Program Oversight to determine if the transfer meets legislative intent or subverts the intention and objectives of the Legislature. Executive and legislative staff review agency budgets and expenditures throughout the year to ensure each agency is meeting program goals and stated legal expenditure limits. Strategic Planning Across the nation, states are in the process of implementing measures to improve efficiency and accountability in state government. Oklahoma is no different. Over the past several years, the Executive and Legislative branch have implemented measures designed to focus on meaningful performance data which can then be used to make better budgeting decisions. Passed in 1999, the Oklahoma Program Performance Budgeting and Accountability Act required agencies to submit strategic plans defining their mission, vision, goals and performance measures. At the same time, state agency budget request forms were modified to incorporate program information and performance measures for every program category within an agency. Section 45.3 of Title 62 requires every agency to submit five year strategic plans on October 1 of every even numbered year. Strategic planning helps focus agency leadership and staff on short-term and long-term goals and how to achieve those goals. Outcome measures required in strategic plans and agency budget requests focus agency leadership and staff on monitoring and improving performance. This information is a valuable tool for policymakers. This performance information is also used in routine and special performance evaluations and policy analysis conducted by agencies, the Office of State Finance, legislative staff, the Auditor and Inspector and outside C-8 FY-2013 Executive Budget consultants. Evaluating government programs and services using meaningful data allows elected officials to make better, more informed budgeting decisions. Budget Request Section 34.36 of Title 62 requires agencies to submit a "Budget Request" on October 1, of every year. The budget request serves as the financial plan to the agency's strategic plan. This document outlines program funding and performance information and includes a detailed listing of additional state funding requested by each agency. The Budget Division has been working with select agencies over the past three years to refine and improve funding and performance measure information submitted in the Budget Request and Strategic Plan. There is particular emphasis on unit costs and program performance. Copies of each agency's budget request and strategic plan is submitted to the Office of State Finance, House and Senate staff and members of the Legislative Oversight Committee on State Budget and Performance. This committee, established in Section 39.96 of Title 62, is required to review each agency's programs, funding and performance once every four years. Members are directed to utilize zero-base budgeting and performance base budgeting techniques. Financial Tools Comprehensive Annual Financial Report (CAFR) The CAFR is the primary means of reporting the financial activities for all state agencies. Prepared by the Division of Central Accounting and Reporting and in conformance with Governmental Accounting Standards Board (GASB) statements 34 and 35, this model provides a better picture of the state's financial status as a single, unified entity. Financial statements contained in the CAFR include a statement of net assets and liabilities, statement of activities outlining major state expenditures, statement of Revenues, Expenditures and Changes in Fund Balances. The CAFR is a valuable tool to use when reviewing and analyzing overall state budget revenue and expenditure trends. Single Audit The Single Audit is prepared by the Auditor & Inspector's Office to meet the requirements of the Single Audit Act. The federal funds expended by all State agencies (excluding higher education and civil emergency management) are included within the scope of the Single Audit. This report provides information on the type of federal funds available for state agencies such as block grants, entitlement programs, matching grants and reports federal fund expenditures for each agency. This report, required by the federal government ensures state agencies are properly expending and accounting for federal funds. Performance Audits Since FY-2002, the Office of the State Auditor and Inspector has been conducting performance audits, authorized by 74 O.S. Supp 2001, 213.2. A performance audit includes economy, efficiency, and program audits. Economy and efficiency audits determine whether the entity is utilizing its resources economically and efficiently. Auditors also determine the causes of inefficiencies or uneconomical practices. A program audit determines if a program is achieving the desired results or benefits established by the Legislature, or other authorizing body. Program audits also ascertain the effectiveness of organizations, programs, activities or functions. In practice, performance audits determine if an agency is focusing resources on activities that maximize productivity or outcomes. In addition to identifying efficiencies, performance audits can also identify areas worthy of additional state investment. This is another important tool for policymakers to utilize when reviewing the efficiency and effectiveness of agency programs and expenditures. C-9 FY-2013 Executive Budget Financial System Daily, monthly and annual reports generated from the Office of State Finance financial systems provide quality agency budgeting and expenditure reports which allow policymakers to track funds by program and object code. Other essential financial reports include budget to actual reports, cash balance and receipts and disbursements for funds. The Budget Request and Strategic Plan documents give policymakers the opportunity to review an agency's mission, goals and performance to ensure resources are allocated to specified statutory duties and responsibilities. Not only do these financial tools ensure agencies are spending money appropriately, but wisely. All of the financial tools mentioned can provide policymakers the opportunity to make informed fiscal policy recommendations based on quality financial and performance information. Capital Budget The Capital Budget Process The State of Oklahoma's Capital Improvement Plan (CIP) and the Long-Range Capital Planning Commission were established in 1992. This provided the infrastructure for state and local governments to perform comprehensive capital plans. Capital projects are defined as one-time projects costing at least $25 thousand with a useful life of at least five years. The CIP development process begins early in the calendar year. July 1 is the official deadline for agencies, boards, commissions, trusts, colleges and universities to input their Capital Budget Requests into a web-based system hosted by the Office of State Finance. Once received, the Commission separates requests into two broad categories: self-funded and appropriation-funded. Generally, the Commission accepts an applicant's ranking of self- funded projects without further review. Projects requiring an appropriation are evaluated according to a ranking process to permit the equitable allocation of limited state resources. The ranking system uses the following criteria: • legal obligations; • fiscal impact; • urgency of maintenance needs; • departmental priority; • economic impact; • impact on service to the public; and • completion of prior phases. For more information on the Capitol Budget process please contact Jim Joseph with the State Bond Advisor's Office, 602-3100. C-10 FY-2013 Executive Budget Oklahoma Revenues and Expenditures Major Tax Sources The single largest source of revenue collected by the state comes from taxes paid by Oklahoma citizens, businesses and others doing business in the state. Tax revenue accounted for approximately 50% of total state revenue collections in FY-2011. Most of the state's appropriated revenue is from general taxes. For FY-2011, tax revenue comprised 91% of total appropriated revenue. Taxes such as income tax are compulsory payments and cannot legally be avoided. This is in contrast to fees, like fishing licenses, which are discretionary and voluntary to the extent one decides to utilize a state service. The six major tax categories for FY-2013 which provide approximately 90% of total state tax revenue are shown below: Major Tax Categories FY-2013 Insurance Other Motor Vehicle Premium Tax 10% Taxes 1% 3% Individual Corporate Income Tax Income Tax 35% 5% Gross Production Taxes 7% Sales and Use Taxes 37% Income Taxes Oklahoma's income tax laws date back to 1915 when an income tax was imposed on the net income of individuals residing in Oklahoma and upon the Oklahoma portion of nonresidents' income. The income tax was extended to corporations and banks in 1931. The importance of the income tax to state revenues increased when voters approved the 1933 constitutional amendment prohibiting state taxation of property. While there have been numerous changes to the income tax law since its inception, today it is the single most important source of state revenue and represents approximately 40% of all state tax revenue collected for the General Revenue Fund. C-11 FY-2013 Executive Budget • Individual Income Tax: The Oklahoma individual income tax calculation employed rates from 0.5 percent to 5.50 percent through calendar-year 2011. Effective January 1, 2012 the top rate will was reduced to 5.25 percent. Federal income taxes paid are not deductible from net income. In 2006, the Legislature passed and the Governor approved the largest tax cut package in history. House Bill 1172 lowered the individual income tax rate and increased the standard deduction over several years. Based on the amount of growth revenue for the coming fiscal year as required by this legislation, the State Board of Equalization determined on February 22, 2011 that conditions had been met to lower the top income tax rate to 5.25% beginning on January 1, 2012. No further reductions will be enacted without further legislative changes. The increase in the standard deduction has been a gradual increase. By tax year 2011, the standard deduction became equal the federal standard deduction. The table below shows the individual income tax rates and corresponding standard deduction increase since 2006. Standard Deduction Married Tax Filing Head of Rate Jointly Household Single 2007 5.65% 5,500 4,125 2,750 2008 5.50% 6,500 4,875 3,250 2009 5.50% 8,500 6,375 4,250 2010 5.50% 11,400 8,350 5,700 2011 5.50% Match Federal Deduction 2012* 5.25% Match Federal Deduction *Based on the amount of growth revenue determined by the Board of Equalization. In addition, the apportionment of individual income tax receipts was changed by the 2006 Legislature. The following table shows those changes. (There is no change for FY-2012 or FY-2013.) C-12 FY-2013 Executive Budget Individual Income Tax Apportionments FY-2007 to FY-2011 FY-2007 FY-2008 FY-2009 FY-2010 FY-2011 General Revenue 86.16% 85.66% 85.66% 85.66% 85.66% 1017 Fund 8.34% 8.34% 8.34% 8.34% 8.34% Teachers' Retirement Fund 4.50% 5.00% 5.00% 5.00% 5.00% Ad Valorem Reimbursement Fund 1.00% 1.00% 1.00% 1.00% 1.00% Corporate Income Tax: Like current individual income tax rates, corporate income tax rates were progressive when implemented in 1931 and remained that way until 1935 when a flat, six percent rate was established. The rate was decreased to four percent in 1947. The rate has since been increased to its original and current level of six percent. The corporate income tax rate is applied to all taxable income. Manufacturers' exemptions and some targeted credits and incentive payments frequently are used as economic development tools which reduce a company's income tax liability. The largest of these targeted incentive programs is the "Quality Jobs" program. While revenue from the corporate income tax is important to the overall revenue picture, it provides only about 4% to 5% of total tax revenue. That is because corporations subject to the corporate income tax have become, over time, a smaller part of the overall economy. This is due, in part, to the fact that many businesses now organize as subchapter S corporations or limited liability organizations. Under those classifications, all income immediately goes to the partners or shareholders, and as a result, the companies pay no corporate income tax. The partners or shareholders, however, are taxed on that income, as well as income from other sources, under the individual income tax, rather than under the corporate income tax. Additionally, some businesses may be subject to some other form of taxation, such as the bank privilege tax or the insurance premium tax. Legislation in 2004 changed the apportionment of corporate income tax revenue. The table below shows the change in apportionment. (There is no change for FY-2012 or FY-2013.) C-13 FY-2013 Executive Budget Corporate Income Tax Apportionments FY-2007 to FY-2011 FY-2007 FY-2008 FY-2009 FY-2010 FY-2011 General Revenue 78.00% 77.50% 77.50% 77.50% 77.50% 1017 Fund 16.50% 16.50% 16.50% 16.50% 16.50% Teachers' Retirement Fund 4.50% 5.00% 5.00% 5.00% 5.00% Ad Valorem Reimbursement Fund 1.00% 1.00% 1.00% 1.00% 1.00% State Sales and Use Taxes The State sales and use tax has varied considerably in both rate and purpose since its initial imposition in 1933 when a temporary one percent tax was dedicated to public schools. Two years later, the tax was renewed, but the revenue from the tax was apportioned to the General Revenue Fund. In 1939, the rate was increased to two percent with 97 percent of the revenue apportioned to the State Assistance Fund or welfare programs administered by what is now the Department of Human Services. The revenue continued to be dedicated in this manner until the 1980s, when all collections were apportioned to the General Revenue Fund. Since then, the General Revenue Fund has been the primary source of state funds for the Department of Human Services. When Oklahoma faced a state funding crisis brought on by the decline of the petroleum industry in the 1980s, the state sales tax was increased incrementally to four percent. In 1990, the "Education Reform Act", also known as House Bill 1017, was passed, increasing the sales and use taxes to the current 4.5 percent level. The sales and use taxes are imposed on sales of tangible personal property and on the furnishing of some services, such as transportation, meals and lodging, as well as telecommunication services. Most services, however, are not subject to the sales and use taxes. Exemptions are also allowed when the product or service is subject to another tax, such as the motor fuels tax. Other specific exemptions are made for governmental and nonprofit entities, agriculture and to certain areas targeted to encourage economic development. The value of some of the large exemptions from the sales and use tax include an exemption on sales to manufacturers equal to $1.6 billion in sales tax revenue and sales for resale which total $1.5 billion in sales tax revenue. During the 2005 legislative session, the apportionment for sales and use tax revenue changed. Now, for each fiscal year the apportionment for use tax is the same as the apportionment for sales tax. The table below shows the change in apportionment. (There is no change for FY-2012 or FY-2013.) C-14 FY-2013 Executive Budget Sales Tax and Use Tax Apportionment FY-2007 to FY-2011 FY-2007 FY-2008 FY-2009 FY-2010 FY-2011 General Revenue 85.04% 83.61% 83.61% 83.61% 83.61% 1017 Fund 10.46% 10.46% 10.46% 10.46% 10.46% Teachers' Retirement Fund 4.50% 5.00% 5.00% 5.00% 5.00% Remaining 0.93% to: 36%-Ok Tourism Promotion Revolving Fund Motor Vehicle Taxes Motor vehicle taxes and fees have a long history in Oklahoma. Oklahoma City was the birthplace of the parking meter in 1913 and it was here that "horseless carriages" were tagged before it was required by the State. Oklahoma's modern day motor vehicle taxes are comprised of a broad category of taxes and fees imposed on the purchase and use of motor vehicles, including an excise tax levied on the purchase of cars, trucks, buses, boats and motors, as well as annual registration fees. Motor vehicle registration fees, commonly called tag fees, are paid annually in lieu of ad valorem or personal property taxes. Voter's passage of State Question 691 in 2000 tied the cost of registration fees to the age of the vehicle: Years 1 – 4: $91 annually Years 5 – 8: $81 annually Years 9 – 12: $61 annually Years 13 – 16: $41 annually Years 17 and beyond: $21 annually The question also changed the calculation of the motor vehicle excise tax, which is paid in lieu of state and local sales taxes. Previously, the tax was assessed at 3.25 percent of the factory delivered price and depreciated at a rate of 35 percent annually. The state question's approval left the rate the same, but assessed it against the actual sales price of the vehicle, which is usually lower than the factory delivered price of a new vehicle. Motor vehicle taxes are collected by independent businesses operating as motor license agents or tag agents. The only exception to this is the taxes and fees imposed on trucks and trailers used in interstate commerce, which are collected by the Oklahoma Tax Commission. The chart below shows how motor vehicle taxes and fees are apportioned. C-15 FY-2013 Executive Budget Motor Vehicle Tax Apportionment General Revenue Fund 29.84% State Transportation Fund 0.31% Counties 29.28% Cities and Towns 3.10% School Districts 36.20% Law Enforcement Retirement 1.24% Wildlife Conservation .03% Motor Fuel Taxes In 1910, local roadways were maintained by requiring able bodied males to provide four days of labor per year – less if they brought their own horse. By 1916, a two mill tax was levied in townships to supplement the work requirement but both were completely abolished by 1933. The first gasoline tax become effective in 1923 and was used for the construction and maintenance of roads and bridges. Prior to that time, local governments were responsible for roads and bridges which were supported through ad valorem taxes at the local level. Motor fuel taxes in Oklahoma are a form of selective sales tax and include the gasoline tax and diesel excise tax, the motor fuel importer use tax and the special fuel use tax. The taxes are levied on the quantity or volume of fuel sold, rather than the price. The state gasoline tax is 16 cents per gallon, plus a 1 cent per gallon special assessment. The state tax on diesel fuel is 13 cents per gallon, plus a 1 cent per gallon assessment. There are some major exemptions to the payment of motor fuel taxes. All government entities are exempt and the tax paid on diesel fuel used off-road and for agricultural purposes may be refunded upon application to the Oklahoma Tax Commission. Fuel used by all recognized Indian tribes for tribal governmental purposes may be exempt. Tribes may request a refund for taxes paid on motor fuel used for tribal purposes, or in the alternative, they may enter into a compact with the State to receive a portion of the motor fuels tax collections. If they compact with the State, the tribes must agree not to challenge the constitutionality of the motor fuel tax code. The law permitting the sharing of motor fuels revenue went into effect in 1996. Motor fuels tax revenue supports road and bridge building, plus maintenance, for both state and local governments. A 1 cent per gallon special assessment provides for environmental cleanup of leaking petroleum storage tanks. Almost one-third of the total motor fuel revenue is apportioned for local uses with the remainder used for state purposes. According to state statute, motor fuel taxes, like sales taxes, are assessed on the consumer when they purchase fuel. This tax incidence was defined by statute during the 1996 legislative session as the result of a court ruling that required whoever actually paid the tax be specified in the statutes. Yet while the statutes identify the consumer as paying the tax, it is technically collected and remitted at the terminal rack or refinery level. The following chart shows the apportionment of gasoline and diesel taxes, after mandated apportionments to the Public Transit Revolving Fund, the Oklahoma Tourism and Passenger Rail Revolving Fund and the first $333,333 each month to the State Transportation Fund: C-16 FY-2013 Executive Budget Motor Fuels Tax Apportionment Gasoline Diesel Tax Tax High Priority State Bridge Fund 1.63% 1.39% State Transportation Fund 63.75% 64.34% Counties for Highways 30.13% 30.43% Cities and Towns 1.88% - County Bridges and Roads 2.63% 3.85% Gross Production Taxes Gross production or severance taxes are imposed on the removal of natural products, such as natural gas and oil, from land or water and are determined by the value and quantity of the products removed. Gross production taxes placed on the extraction of oil and gas were separated from the ad valorem property tax in 1910. For the first 20 years of statehood, oil and gas gross production and the ad valorem property tax were the major sources of state revenue. While the ad valorem property tax became strictly a local tax in the 1930s, the oil and gas gross production tax have continued to be an important source of revenue for state government, schools and road building and maintenance. Oil and natural gas have a three-tiered tax rate structure that specifies a certain tax rate based on the current price of oil or natural gas. For natural gas, if the price per thousand cubic feet (MCF) is equal to or greater than $2.10, the tax rate is 7%. If the price is less than $2.10 and equal to or greater than $1.75 per MCF, then the rate is 4% and any price lower than $1.75 results in a tax rate of 1%. For oil, the price must be greater than $17 per barrel for the tax rate to be 7%. If the price is between $17 and $14 per barrel, the tax rate is 4%, and a price below $14 per barrel yields a 1% tax rate. The charts below show the apportionment for the revenue from gross production tax on oil and natural gas. During the 2006 Legislative Session, The Rural Economic Access Plan (REAP Fund) apportionment from the Gross Production tax on oil was divided between three new funds. Each of the three funds receives 33.33% of the 4.28% apportioned to the REAP Fund. The table below shows the apportionments to all funds from the Gross Production tax on oil. A cap of $150 million applies to six of the funds receiving Gross Production oil revenue (identified by an asterisk in the apportionment chart that follows). Oil revenue collected above the $150 million cap that would have been apportioned to those funds is deposited into the General Revenue Fund. Tables below show the apportionment of gross production taxes. C-17 FY-2013 Executive Budget Gross Production Tax – Oil Apportionment *Common Education Technology Fund 25.72% *OK Student Aid Revolving Fund 25.72% *Higher Education Capital Fund 25.72% County Highways 7.14% School Districts 7.14% County Roads and Bridges 3.745% Statewide Circuit Engineering Dist. Fund 0.535% REAP Fund 4.28% *Tourism Capital Expenditure Fund 33.33% *Conservation Commission Fund 33.33% *Community Water Revolving Fund 33.33% * Indicates capped funds Gross Production Tax – Natural Gas Apportionment General Revenue Fund 85.72% County Highways 7.14% School Districts 7.14% C-18 FY-2013 Executive Budget Constitutional Reserve "Rainy Day" Fund (CRF) History Description FY-93 FY-94 FY-95 FY-96 FY-97 Beginning RDF Balance 135,008,898 91,140,995 45,574,052 45,574,052 114,300,821 Adjustments to the Balance 0 3,555 0 12,909 388,745 Appropriations (43,867,903) (45,570,498) 0 (22,688,345) (52,825,496) -Budget Stabilization 1)Current Fiscal Year - - - - - 2)Next Fiscal Year - - - - - -Emergency 67,504,449 45,570,498 22,787,026 22,787,026 57,150,411 End of FY Deposit 0 0 0 91,402,205 247,042,463 Ending Balance 91,140,995 45,574,052 45,574,052 114,300,821 308,906,533 Description FY-98 FY-99 FY-00 FY-01 FY-02 Beginning RDF Balance 308,906,533 297,360,609 149,858,523 157,542,574 340,685,730 Adjustments to the Balance 0 1,119,324 28,700 9,826 299,087 Appropriations (154,444,000) (148,621,410) (74,929,261) (78,771,287) (268,585,822) -Budget Stabilization 1)Current Fiscal Year - - - - 98,242,957 2)Next Fiscal Year - - - - - -Emergency 154,453,266 148,680,304 74,929,262 78,771,287 170,342,865 End of FY Deposit 142,898,076 0 82,584,612 261,904,617 0 Ending Balance 297,360,609 149,858,523 157,542,574 340,685,730 72,398,995 Description FY-03 FY-04 FY-05 FY-06 FY-07 Beginning RDF Balance 72,398,995 136,333 217,501,299 461,316,574 495,690,168 Adjustments to the Balance 0 0 0 268,565 0 Appropriations (72,262,663) 0 0 0 0 -Budget Stabilization 1)Current Fiscal Year 36,199,498 68,167 - - - 2)Next Fiscal Year - - - - - -Emergency 36,199,498 68,167 54,375,325 115,329,143 123,922,542 End of FY Deposit 0 217,364,966 243,815,275 34,105,029 75,908,459 Ending Balance 136,333 217,501,299 461,316,574 495,690,168 571,598,627 Description FY-08 FY-09 FY-10 FY-11 FY-12 Beginning RDF Balance 571,598,627 596,573,270 596,573,270 249,143,318 249,203,157 Adjustments to the Balance 0 0 0 0 0 Appropriations 0 0 (347,429,952) (249,143,316) 0 -Budget Stabilization 1)Current Fiscal Year - - 223,714,976 149,143,316 0 2)Next Fiscal Year - - 123,714,976 100,000,000 0 -Emergency 142,899,657 149,143,317 149,143,317 62,285,829 62,300,789 End of FY Deposit 24,974,643 0 0 249,203,155 NA Ending Balance 596,573,270 596,573,270 249,143,318 249,203,157 NA C-19 FY-2013 Executive Budget FY-2010 Percent Percent of FY-2011 Percent Percent of FY-2012 Percent Percent of Agency/Cabinet Name Appropriation Change Total Appropriation Change Total Appropriation Change Total After Shortfall SUMMARY BY CABINET Governor $2,289,974 -13.97% 0.04% $2,129,671 -7.00% 0.03% $1,980,594 -7.00% 0.03% Lieutenant Governor 567,421 -13.97% 0.01% 527,699 -7.00% 0.01% 506,591 -4.00% 0.01% Agriculture 39,495,727 -11.91% 0.65% 36,152,328 -8.47% 0.57% 35,171,931 -2.71% 0.55% Commerce & Tourism 102,105,379 7.63% 1.68% 79,220,298 -22.41% 1.25% 79,310,200 0.11% 1.23% Education 3,346,034,316 -11.03% 55.12% 3,344,808,681 -0.04% 52.82% 3,378,750,778 1.01% 52.52% Energy 11,607,203 -13.57% 0.19% 10,944,695 -5.71% 0.17% 12,103,566 10.59% 0.19% Environment 16,635,861 0.64% 0.27% 13,825,424 -16.89% 0.22% 13,057,644 -5.55% 0.20% Finance & Revenue 84,367,917 -8.79% 1.39% 86,322,407 2.32% 1.36% 83,888,022 -2.82% 1.30% Health 801,765,112 -28.84% 13.21% 945,058,437 17.87% 14.92% 1,154,810,182 22.19% 17.95% Human Resources & Admin 24,238,727 -12.17% 0.40% 23,121,506 -4.61% 0.37% 24,047,311 4.00% 0.37% Human Services 594,670,192 -21.54% 9.80% 652,525,652 9.73% 10.30% 689,305,061 5.64% 10.71% Military 11,332,689 -13.70% 0.19% 10,787,365 -4.81% 0.17% 10,247,997 -5.00% 0.16% Safety & Security 659,861,621 -8.09% 10.87% 649,920,068 -1.51% 10.26% 639,191,659 -1.65% 9.94% Science & Technology Dev. 20,374,572 -9.27% 0.34% 19,152,096 -6.00% 0.30% 17,811,449 -7.00% 0.28% Secretary of State 7,056,698 -13.29% 0.12% 9,128,114 29.35% 0.14% 8,403,937 -7.93% 0.13% Transportation 193,541,937 -7.05% 3.19% 115,195,299 -40.48% 1.82% 107,131,628 -7.00% 1.67% Veterans 37,261,401 -7.50% 0.61% 35,957,256 -3.50% 0.57% 34,698,752 -3.50% 0.54% Total Executive Branch 5,953,206,747 -14.33% 98.07% 6,034,776,996 1.37% 95.30% 6,290,417,302 4.24% 97.78% The Legislature 34,413,321 -12.69% 0.57% 32,004,383 -7.00% 0.51% 30,639,306 -4.27% 0.48% The Judiciary 76,786,626 -10.76% 1.26% 80,828,193 5.26% 1.28% 84,431,797 4.46% 1.31% Total Legis. & Judic. 111,199,947 -11.37% 1.83% 112,832,576 1.47% 1.78% 115,071,103 1.98% 1.79% Total Excl. Sups./Ret. 6,064,406,694 -14.27% 99.91% 6,147,609,572 1.37% 97.08% 6,405,488,405 4.19% 99.57% Supplementals & Emerg. Fd. (l) 5,750,000 -95.15% 0.09% 185,022,235 3117.78% 2.92% 27,600,000 -85.08% 0.43% Total $6,070,156,694 -15.61% 100.00% $6,332,631,807 4.3% 100.00% $6,433,088,405 1.6% 100.00% GOV. AND LT. GOV. Governor 2,289,974 -13.97% 0.04% $2,129,671 -7.00% 0.03% $1,980,594 -7.00% 0.03% Lieutenant Governor 567,421 -13.97% 0.01% 527,699 -7.00% 0.01% 506,591 -4.00% 0.01% AGRICULTURE Agriculture 30,641,202 -11.29% 0.50% 26,306,894 -14.15% 0.42% 25,610,247 -2.65% 0.40% Conservation Commission 8,854,526 -13.97% 0.15% 9,845,434 11.19% 0.16% 9,561,684 -2.88% 0.15% TOTAL AGRICULTURE 39,495,727 -11.91% 0.65% 36,152,328 -8.47% 0.57% 35,171,931 -2.71% 0.55% COMMERCE AND TOURISM Commerce, Dept. of (b) 46,785,006 51.24% 0.77% 26,905,919 -42.49% 0.42% 29,073,212 8.06% 0.45% REAP - local gov'ts thru commerce 13,333,875 -13.98% 0.22% 12,400,504 -7.00% 0.20% 11,532,469 -7.00% 0.18% J. M. Davis Memorial Commission 331,546 -13.97% 0.01% 306,677 -7.50% 0.00% 306,009 -0.22% 0.00% Historical Society 13,184,058 -11.92% 0.22% 12,913,636 -2.05% 0.20% 12,502,546 -3.18% 0.19% Labor Department 3,404,418 -9.46% 0.06% 3,166,110 -7.00% 0.05% 3,081,160 -2.68% 0.05% Scenic Rivers Commission 297,058 -13.98% 0.00% 279,239 -6.00% 0.00% 271,315 -2.84% 0.00% Tourism & Recreation (j) 23,966,199 -14.53% 0.39% 22,503,229 -6.10% 0.36% 21,803,003 -3.11% 0.34% Will Rogers Memorial Comm. 803,218 -13.97% 0.01% 744,984 -7.25% 0.01% 740,486 -0.60% 0.01% TOTAL COMMERCE & TOURISM 102,105,379 7.63% 1.68% 79,220,298 -22.41% 1.25% 79,310,200 0.11% 1.23% C-20 FY-2013 Executive Budget FY-2010 Percent Percent of FY-2011 Percent Percent of FY-2012 Percent Percent of Agency/Cabinet Name Appropriation Change Total Appropriation Change Total Appropriation Change Total EDUCATION Arts Council 4,763,987 -7.51% 0.08% 4,406,689 -7.50% 0.07% 4,010,087 -9.00% 0.06% Career. & Techn Education (e) 146,217,612 -7.61% 2.41% 141,977,302 -2.90% 2.24% 133,742,618 -5.80% 2.08% Education, Dept. of (c) 2,231,731,157 -11.85% 36.77% 2,236,034,551 0.19% 35.31% 2,278,158,382 1.88% 35.41% Educational TV Authority 4,468,472 -46.77% 0.07% 4,200,360 -6.00% 0.07% 3,822,328 -9.00% 0.06% Higher Educ., Regents for (d) 943,352,816 -9.28% 15.54% 943,666,030 0.03% 14.90% 945,260,277 0.17% 14.69% Department of Libraries 6,747,468 -7.50% 0.11% 6,342,616 -6.00% 0.10% 5,898,633 -7.00% 0.09% School of Science & Math 6,980,701 -12.59% 0.12% 6,540,080 -6.31% 0.10% 6,332,274 -3.18% 0.10% Teacher Preparation Comm. 1,772,104 -13.97% 0.03% 1,641,053 -7.40% 0.03% 1,526,179 -7.00% 0.02% TOTAL EDUCATION 3,346,034,316 -11.03% 55.12% 3,344,808,681 -0.04% 52.82% 3,378,750,778 1.01% 52.52% ENERGY Corporation Commission (f) 10,735,265 -13.53% 0.18% 10,133,793 -5.60% 0.16% 11,324,427 11.75% 0.18% Mines, Department of 871,938 -13.97% 0.01% 810,902 -7.00% 0.01% 779,139 -3.92% 0.01% TOTAL ENERGY 11,607,203 -13.57% 0.19% 10,944,695 -5.71% 0.17% 12,103,566 10.59% 0.19% ENVIRONMENT Environmental Quality, Dept. of 8,599,847 -11.60% 0.14% 8,126,853 -5.50% 0.13% 7,557,973 -7.00% 0.12% Water Resources Board 8,036,014 74.64% 0.13% 5,698,571 -29.09% 0.09% 5,499,671 -3.49% 0.09% TOTAL ENVIRONMENT 16,635,861 0.64% 0.27% 13,825,424 -16.89% 0.22% 13,057,644 -5.55% 0.20% FINANCE & REVENUE Auditor & Inspector (g) 5,432,706 -13.98% 0.09% 5,152,673 -5.15% 0.08% 4,706,986 -8.65% 0.07% Bond Advisor, State 160,373 -13.97% 0.00% 155,556 -3.00% 0.00% 143,112 -8.00% 0.00% Consumer Credit Commission 575,546 -13.97% 0.01% 535,255 -7.00% 0.01% 331,730 -38.02% 0.01% Finance, Office of State 22,175,325 -3.93% 0.37% 20,623,054 -7.00% 0.33% 19,179,440 -7.00% 0.30% Insurance Department (a) 2,164,345 -13.97% 0.04% 2,012,836 -7.00% 0.03% 1,871,937 -7.00% 0.03% Land Office Commission 5,004,880 2.88% 0.08% 7,109,000 42.04% 0.11% 7,109,000 0.00% 0.11% Tax Commission 42,830,937 -14.68% 0.71% 46,830,944 9.34% 0.74% 46,915,944 0.18% 0.73% Treasurer 6,023,806 29.02% 0.10% 3,903,089 -35.21% 0.06% 3,629,873 -7.00% 0.06% TOTAL FINANCE & REVENUE 84,367,917 -8.79% 1.39% 86,322,407 2.32% 1.36% 83,888,022 -2.82% 1.30% HEALTH Health Department 67,553,002 -9.96% 1.11% 61,547,757 -8.89% 0.97% 59,477,971 -3.36% 0.92% Health Care Authority 549,272,707 -34.78% 9.05% 699,875,770 27.42% 11.05% 912,219,389 30.34% 14.18% Mental Health Department 184,939,403 -11.76% 3.05% 183,634,910 -0.71% 2.90% 183,112,822 -0.28% 2.85% TOTAL HEALTH 801,765,112 -28.84% 13.21% 945,058,437 17.87% 14.92% 1,154,810,182 22.19% 17.95% HUMAN RESOURCES & ADMIN. Central Services, Dept. of 16,552,199 -11.55% 0.27% 15,973,031 -3.50% 0.25% 17,313,301 8.39% 0.27% Horse Racing Commission 2,296,501 -13.97% 0.04% 2,135,741 -7.00% 0.03% 2,072,167 -2.98% 0.03% Human Rights Commission 614,252 -13.51% 0.01% 571,258 -7.00% 0.01% 531,270 -7.00% 0.01% Merit Protection Commission 567,654 -7.50% 0.01% 527,921 -7.00% 0.01% 490,967 -7.00% 0.01% Personnel Management 4,208,121 -13.98% 0.07% 3,913,555 -7.00% 0.06% 3,639,606 -7.00% 0.06% TOTAL HUMAN RES & ADMIN 24,238,727 -12.17% 0.40% 23,121,506 -4.61% 0.37% 24,047,311 4.00% 0.37% C-21 FY-2013 Executive Budget FY-2010 Percent Percent of FY-2011 Percent Percent of FY-2012 Percent Percent of Agency/Cabinet Name Appropriation Change Total Appropriation Change Total Appropriation Change Total HUMAN SERVICES Children & Youth Commission 2,294,215 -12.05% 0.04% 2,156,561 -6.00% 0.03% 2,027,167 -6.00% 0.03% Disability Concerns 363,314 -11.98% 0.01% 341,513 -6.00% 0.01% 317,607 -7.00% 0.00% Human Services Dept. (h) 420,904,729 -24.72% 6.93% 500,110,884 18.82% 7.90% 514,518,301 2.88% 8.00% Indian Affairs 222,344 -13.98% 0.00% 206,781 -7.00% 0.00% 192,306 -7.00% 0.00% J.D. McCarty Center 3,782,680 -15.05% 0.06% 3,664,060 -3.14% 0.06% 3,359,210 -8.32% 0.05% Office of Juvenile Affairs 103,463,169 -7.83% 1.70% 97,663,872 -5.61% 1.54% 95,915,593 -1.79% 1.49% Phys. Manpower Trng. Comm. 4,781,592 -13.43% 0.08% 3,740,287 -21.78% 0.06% 4,379,254 17.08% 0.07% Rehabilitation Svcs., Dept.of 28,169,735 -6.27% 0.46% 30,453,770 8.11% 0.48% 30,149,232 -1.00% 0.47% University Hospitals Authority 30,688,414 -29.04% 0.51% 14,187,924 -53.77% 0.22% 38,446,391 170.98% 0.60% TOTAL HUMAN SERVICES 594,670,192 -21.54% 9.80% 652,525,652 9.73% 10.30% 689,305,061 5.64% 10.71% MILITARY AFFAIRS Military Department 11,332,689 -13.70% 0.19% 10,787,365 -4.81% 0.17% 10,247,997 -5.00% 0.16% TOTAL MILITARY AFFAIRS 11,332,689 -13.70% 0.19% 10,787,365 -4.81% 0.17% 10,247,997 -5.00% 0.16% SAFETY AND SECURITY A.B.L.E. Commission 3,630,866 -7.50% 0.06% 3,376,703 -7.00% 0.05% 3,140,334 -7.00% 0.05% Attorney General 12,693,072 -14.13% 0.21% 12,704,552 0.09% 0.20% 13,228,141 4.12% 0.21% Corrections Department 469,025,000 -6.75% 7.73% 462,141,777 -1.47% 7.30% 459,831,068 -0.50% 7.15% District Attorneys Council 36,836,083 -13.98% 0.61% 34,257,560 -7.00% 0.54% 32,887,258 -4.00% 0.51% Emergency Management 729,203 -36.95% 0.01% 692,744 -5.00% 0.01% 651,179 -6.00% 0.01% Fire Marshal 2,077,421 -8.52% 0.03% 1,932,004 -7.00% 0.03% 1,796,764 -7.00% 0.03% Indigent Defense System (i) 14,554,959 -13.02% 0.24% 15,153,971 4.12% 0.24% 14,699,353 -3.00% 0.23% Investigation, Bureau of 15,824,005 -8.62% 0.26% 14,716,322 -7.00% 0.23% 13,848,059 -5.90% 0.22% Law Enf. Educ. & Training 4,341,699 -5.91% 0.07% 3,917,618 -9.77% 0.06% 3,682,560 -6.00% 0.06% Medicolegal Investigatons Board 4,347,448 -9.91% 0.07% 4,794,164 10.28% 0.08% 4,698,281 -2.00% 0.07% Narc. & Dang. Drugs Control 5,928,495 -12.48% 0.10% 5,466,418 -7.79% 0.09% 3,616,418 -33.84% 0.06% Pardon & Parole Board 2,334,164 -9.44% 0.04% 2,334,162 0.00% 0.04% 2,217,454 -5.00% 0.03% Public Safety Department 87,539,208 -9.91% 1.44% 88,432,073 1.02% 1.40% 84,894,790 -4.00% 1.32% TOTAL SAFETY & SECURITY 659,861,621 -8.09% 10.87% 649,920,068 -1.51% 10.26% 639,191,659 -1.65% 9.94% SCIENCE & TECH.DEVELOP. Center for Adv. /Sc. & Tech. 20,374,572 -9.27% 0.34% 19,152,096 -6.00% 0.30% 17,811,449 -7.00% 0.28% TOTAL SCIENCE & TECH.DEV. 20,374,572 -9.27% 0.34% 19,152,096 -6.00% 0.30% 17,811,449 -7.00% 0.28% SECRETAR