LEGISLATIVE ISSUES REPORT Legislation, Lobbying Advocacy FEBRUARY 2018 Jennifer McCollum, APR Division Director FEBRUARY 2018

FEDERAL LEGISLATIVE UPDATE FISCAL YEAR 2019 BUDGET of the U.S. GOVERNMENT Page 31: “Eliminates Duplicative and Unnecessary Programs. American prosperity depends on fiscal restraint to direct funding to the highest priorities. The Budget eliminates the Economic Development Administration, which provides small grants with limited measurable impacts and duplicates other Federal programs, such as Rural Utilities Service grants at the U.S. Department of Agriculture and formula grants to States from the Department of Transportation. By eliminating this Agency, the Budget reduces waste and saves approximately $300 million from the 2017 enacted level.” The Budget also eliminates Federal funding for the Manufacturing Extension Partnership (MEP) program, which subsidizes up to half the cost of State centers that provide consulting services to small- and medium-sized manufacturers. This proposal saves $125 million, and directs MEP centers to transition solely to non-Federal revenue sources as originally intended when the program was established. KEY: Budget includes $9.8 billion for the U.S. Department of Commerce, a $546 million increase over FY 2018. By eliminating EDA, the budget would save $300 million.

FEDERAL LEGISLATIVE UPDATE FISCAL YEAR 2019 BUDGET of the U.S. GOVERNMENT Page 85: The Budget requests $15.6 billion in discretionary budget authority for 2019, a $3.7 billion or 19-percent decrease from the 2017 enacted base discretionary level of $19.3 billion (which excludes supplemental emergency relief funding). The Budget also provides $60.9 billion in mandatory funds and obligation limitations. For programs funded from the Highway Trust Fund, the Budget is consistent with the fourth year of the Fixing America’s Surface Transportation Act (FAST Act) of 2015. Would eliminate the Transportation Investment Generating Economic Recovery (TIGER) program Federal Highway Administration would receive $45.7 billion, $2 billion more than FY17 levels Federal Transit Administration – Budget proposes ceasing funding new projects under the Capital Investment Grants program. This would directly impact new light rail and subway systems.

FEDERAL LEGISLATIVE UPDATE FISCAL YEAR 2019 BUDGET of the U.S. GOVERNMENT $200 Billion Infrastructure Proposal: “To dramatically modernize the Nation’s infrastructure, and make it the best in the world, the Administration is proposing a comprehensive Infrastructure Initiative. The initiative is designed to: spur additional State, local, and private infrastructure investment by awarding incentives to project sponsors for demonstrating innovative approaches that would generate new revenue streams, modernize procurement practices, and improve project performance; support bold, innovative, and transformative infrastructure projects that can significantly improve existing conditions; support rural economic competitiveness through a Rural Formula Grant program; and accelerate the delivery of nationally and regionally significant projects with increased Federal loan support…These programs would support additional investment in highways, bridges, airports, rail, ports, and other types of infrastructure in urban and rural America.”

OKLAHOMA LEGISLATIVE UPDATES STEP UP Step Up was a $581 million dollar package of proposed tax increases designed to close the gap on Oklahoma’s ongoing budget shortfalls. Endorsed by five former Oklahoma Governors and Governor Fallin Failed to pass on February 12. Passage required a 75 percent vote Fell short by 13 votes; Defeated 63-35 53 of the 72 House Republicans voted FOR the bill 10 of the 28 House Democrats voted FOR the bill Would have given teachers a pay raise Would have been the biggest tax increase in Oklahoma history

OKLAHOMA LEGISLATIVE UPDATES STEP UP FALLOUT Continued Reports of Possible Teachers Strike Corrections Hiring Freeze with institutions at 113 percent capacity ODOT formally called for an end to diversion of transportation funding to other state agencies Former U.S. Senator and 10 House Republicans call for state agency performance Legislators voted on Monday, February 19, to cut $44.7 million from state agencies. Across the board cuts equal 2 percent from budgets over the next four months

OKLAHOMA LEGISLATION BILLS, RESOURCES SB 1374: Requires a person or entity operating a bicycle sharing company to maintain a current and valid combined single-limit policy of commercial general liability insurance coverage in the amount of at least $500,000 occurrence for bodily injury and property damage. HB 2756: Clean Transportation Reform and Modernization Act of 2018 HB 2633: Amends the Open Meeting Act by authorizing executive sessions for discussing contract negotiations SB 1082: Would create the High Speed Transit Rail Expansion Commission. Passed Senate Transportation Committee SB 1379: Directs ODOT to enter into agreements for light rail passenger service in Tulsa.

OKLAHOMA LEGISLATION BILLS, RESOURCES OML Reports OCPA (Oklahoma Council for Public Affairs) OPA (Oklahoma Policy Institute) REMINDER: Bill Tracking and Monitoring Service

LEGISLATIVE UPDATES BUDGET NEWS Oklahoma Board of Equalization certified on February 20, that the state faces a $167.8 million revenue hole for the Fiscal Year 2019 budget. $270 million in obligations $104 million in growth Cuts to ODOT, Corrections, DHS, and other state agencies still not restored OMES Presentation on ACOG Website

THANK YOU Jennifer McCollum, APR ASSOCIATION OF CENTRAL OKLAHOMA Division Director jmccollum@acogok.org ASSOCIATION OF CENTRAL OKLAHOMA GOVERNMENTS acogok.org Office: 405.234.2264