IT took longer than expected to come together, but legislative leaders and the governor's office were finally able to reach an agreement on a $475 million bond issue package that is manageable in size and relatively narrow in scope, which was the proper approach.
The price tag for the bond issue wish list was about $1.7 billion after the varied constituencies made their pitches for help. Negotiators wisely focused on areas of greatest need, chief among them road and bridge repair and the state's endowed chairs program.
Roads and bridges will get $300 million, which will help the Oklahoma Department of Transportation offset a hole in its maintenance budget that has formed as a result of previous legislation not funneling as much money to the agency as originally expected. An important piece of the highway bond issue proposal removes a funding trigger that's been problematic for ODOT. A 2006 bill gave the agency an additional $50 million annually if state revenue grew by at least 3 percent; the amount dropped to $17.5 million if growth was less than that, as has happened each of the past two years. Under the new plan, the highway program would get an additional $30 million each year until it reaches $300 million per year once fully implemented.
It was vitally important for the state to make strides in keeping its promise to those who have given to colleges and universities for endowed chairs, expecting a dollar-for-dollar match. This bond issue proposal helps to address that.
The $100 million that Boone Pickens gave to Oklahoma State University last week means the state now faces a backlog of about $225 million. The bond issue plan includes $100 million for the endowed chairs program. Beginning July 1, the state will place a moratorium on matching private donations until all those in the pipeline are honored. Once the moratorium is lifted, the state will match gifts of $250,000 or less on a dollar-for-dollar basis. Gifts larger than that will be matched at 25 cents on the dollar, with the state's annual match to be capped at $5 million.
This seems reasonable. The state is honoring the gifts already given and better positioning itself to match future gifts in a more timely fashion. But this presents a significant change to the program, and legislators should remain open to revisiting the issue after regents and college presidents have had more time to gauge its impact or any unintended consequences.
The remaining $75 million in the bond issue will be divided equally among three projects — flood control measures across the state, the American Indian Museum and Cultural Center under construction in Oklahoma City, and Arkansas River bridge and dam improvements.
Negotiators found a way to help fund two major initiatives, and were able to contribute to projects in Tulsa, Oklahoma City and rural parts of the state. It wasn't everything lawmakers wanted, but it still gave them all something to tout to constituents this summer.
