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Report: Oklahoma could be more transparent about CARES Act spending

12/30/2021

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(The Center Square) – Oklahoma officials could do a better job of letting the public know how the state is spending funds from the Coronavirus, Aid, Relief and Economic Security (CARES) Act, according to a report from the nonprofit Good Jobs First.

The nonprofit analyzed how states were tracking Coronavirus Relief Fund (CRF) spending and providing information to the public.

CRF relief was provided to states through the CARES Act, which was signed into law in March 2020 by President Donald Trump. The $2.2 trillion package allotted $111.8 billion for emergency assistance to state governments and the District of Columbia.

Six states received high marks for transparency in the report. Oklahoma fell in the middle tier of states that had “some disclosure.”

“Most states recognize the importance of disclosing their CRF-related spending to some extent, and they have created websites and landing pages that track program spending,” the report’s authors said. “While most states disclose some information on CRF spending, like awardee names and allocations to state agencies and programs, their websites often lack details on how awardees in turn spent their funds – which were often paid in large blocks.”

On Oklahoma’s website, a dashboard displays how much money the state received, what groups and organizations received money, including expenses as low as $25, and breaks down the money spent by category. The categories include economic, medical and payroll expenses.

Oklahoma’s largest area of CRF spending was economic expenses, which were $402.33 million, or 33.76%, of all spending. The next largest area of spending was listed as “blank,” which accounts for 21.54% of the total amount. Medical expenses are the state’s third-largest expense.

What the website fails to do, according to the report, is go into detail about how money was spent once it was dolled out to recipients. It also doesn’t list data on education expenditures.

”Recipient and vendor spending descriptions were of high importance to us, as they give constituents a detailed picture of how CRF money was ultimately spent,” the report’s authors said. “State pages with this information were treated as examples of good disclosure. States without spending websites or with websites with very little information were considered as poor disclosure.”

Seventeen states and the District of Columbia have inadequate or no disclosure at all about how relief money is being spent, according to the report. Eight states and the District of Columbia don’t have a website, according to the report.

States that are the most transparent about CARES Act spending are Alabama, Georgia, Illinois, Massachusetts, Michigan and Wyoming, according to the report.



via Oklahoma's Center Square News
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How the Property Crime Rate in Oklahoma Compares to the Nation

12/30/2021

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Communities and police departments across the United States are grappling with rising rates of deadly violence, as the U.S. murder rate reached its highest level in nearly two and a half decades in 2020. Despite the recent surge in homicides, however, most Americans face a far higher risk of being the victim of crimes that do not involve violence.

Property crimes, a broad category of theft-related offenses, are by far the most commonly reported of all major crimes in the United States, accounting for over 80% of the most serious offenses tracked and reported by the FBI. Property crimes fall into one of three categories: larceny, burglary, and vehicle theft.

Larceny is defined as the unlawful taking of property -- pickpocketing and shoplifting being two common examples. Burglary, defined as the illegal entry of a structure to commit a crime, such as theft, is the most severe form of property crime tracked by the FBI. Vehicle-theft, meanwhile, is a crime that can be either the theft, or the attempted theft, of a vehicle, such a car, motorcycle, or ATV.

There were a total of 107,705 property crimes reported in Oklahoma in 2020. Adjusting for population, there were 2,706 property crimes for every 100,000 people, the sixth highest property crime rate among states and higher than the national rate of 1,958 per 100,000 people.

Larceny is by far the most commonly reported property crime nationwide. The same pattern holds in Oklahoma, where larceny accounted for about 63% of all major nonviolent offenses in 2020. Burglary, meanwhile, comprised about 23% of reported property crimes in the state, and motor vehicle theft accounted for 14%.

All data in this story, including population estimates used to calculate crime rates, are from the FBI.

RankStateProperty crimes per 100k people, 2020Total poperty crimes, 20201Louisiana2,884133,9892New Mexico2,84259,8593Colorado2,834164,5824Washington2,732210,2235South Carolina2,721141,9876Oklahoma2,706107,7057Oregon2,659112,7828Arkansas2,61379,2009Missouri2,531155,69810Tennessee2,493171,67511Utah2,46480,09112Hawaii2,41133,92813Alaska2,26116,52814Texas2,245659,16015Arizona2,228165,32316North Carolina2,227236,02617Kansas2,19964,07718California2,139842,05419Alabama2,137105,16120Minnesota2,125120,21221North Dakota2,12416,25622Montana2,12122,91723Mississippi2,10262,35124Georgia2,007214,98825Delaware1,96119,35526South Dakota1,95717,46827Nevada1,92760,46228Nebraska1,90936,99129Ohio1,850216,36330Indiana1,783120,45331Kentucky1,78079,67332Florida1,769384,55633Iowa1,69853,72534Pennsylvania1,644210,16735Wyoming1,6119,37936Maryland1,61097,48737Connecticut1,56555,67038Illinois1,559196,28739Wisconsin1,48686,65440Virginia1,456125,11441New York1,411272,78842West Virginia1,39924,97643Michigan1,361135,63344Rhode Island1,24613,16645Vermont1,2177,58646New Jersey1,158102,87547Maine1,15615,61048Idaho1,11220,31349New Hampshire1,09915,01450Massachusetts1,05372,602



via Oklahoma's Center Square News
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As gas costs soared in 2021 average prices remained among lowest in Oklahoma Texas

12/30/2021

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(The Center Square) – While gas prices have soared nationwide this year, average prices at the pump have remained among the lowest in Oklahoma and Texas, in part because they are significant oil and gas hubs for the nation.

The lowest current average regular gas prices per gallon are $2.822 in Oklahoma and $2.825 in Texas. Oklahomans have had the lowest prices nationwide throughout the surge of gas prices this fall, AAA reports. In the spring, Oklahoma’s average gas prices were the sixth-lowest in the nation.

On Dec. 21, AAA Texas Weekend Gas watch reported that Texas’ statewide gas price average was $2.89 for a gallon of regular unleaded fuel.

By Christmas, Texans visiting the Gulf in Galveston paid $2.44 a gallon, lower than other areas near Houston, where prices averaged $2.89 a gallon.

However, gas prices in Texas are still around a dollar more than they were last Christmas. And last spring, while both states were under lockdown, average gas prices were $1.52 a gallon in Oklahoma and in the Sherman/Denison area Texans were paying around $1.17 a gallon.

As of Dec. 28, 2021, the average price for regular unleaded fuel in Texas was $2.87 a gallon, AAA Texas reports, compared to the national average of $3.28.

In November, regular gasoline retail prices averaged $3.39 a gallon nationally, the U.S. Energy Information Agency reports. That’s 10 cents a gallon more than it was in October and $1.29 a gallon more than it was last November.

November’s monthly average was the highest since September 2014, the EIA adds.

The agency forecasts that retail gasoline prices will fall to $3.01 a gallon in January and $2.88 a gallon, on average, in 2022.

Total U.S. crude oil production was an estimated at 11.7 million barrels a dayin November, the agency notes. It’s forecasting an increase to an average of 11.8 million barrels a day in 2022 and an average of 12.1 million barrels a day in the fourth quarter of 2022.

Prices at the pump are greatly impacted by the West Texas Intermediate Index, the benchmark for North America, which serves as a reference point for buyers and sellers of crude oil. They’re also impacted by U.S. EIA, API and OPEC+ reports, and a range of public policies decisions.

The WTI’s crude oil is sourced from the Permian and Delaware Basins of Texas and New Mexico, and is refined in the Gulf of Mexico and the Midwest. The point of delivery for its physical exchange and price settlement has historically been Cushing, Oklahoma, known as the “Pipeline Crossroads of the World.” But through new pipeline access the same crude is trading for export as AGS at U.S. Gulf ports.

In 2020 and 2021, WTI production plummeted for lack of drilling and completing new wells. Adequate crude supplies provided lower prices at the pump when the WTI crude oil average per barrel was $56.99 in 2019 and even lower when its average was $39.17 a barrel in 2020 – after it hit a low of negative $40 a barrel on April 20, 2020.

Gas prices at the pump increased as the WTI reached an average $67.87 a barrel in 2021. The EIA projects the WTI average to be $66.42 a barrel in 2022; Wall Street analysts project it to be much higher.

Nationally, the average price for a regular gallon of gas was $2.60 in 2019, $2.18 in 2020, and $3.00 in 2021, the EIA reports, projecting the average to be $2.88 a gallon in 2022.

On-highway retail for diesel fuel per gallon was $3.09 in 2019, $2.56 in 2020, and $3.28 in 2021, the EIA reports, projecting the average to be $3.19 a gallon in 2022.

Following Texas and Oklahoma, 13 states have average gas prices under $3 a gallon, Gas Buddy reports. The majority of states’ average gas prices are over $3 a gallon. California and Hawaii have consistently had the highest average gas prices in the nation, in part to higher taxes, with average gas prices now over $4 a gallon.

Unlike the EIA’s projections, GasBuddy expects average gas prices to increase nationally next year to around $3.41 a gallon with a peak in May that could reach $4 a gallon. Gas Buddy analyst Patrick De Haan told CNN: “We could see a national average that flirts with, or in a worst-case scenario, potentially exceeds $4 a gallon.”

De Haan says with the WTI reaching $76 a barrel, “Expect a spike soon in the Great Lakes, which could push the national average up a few cents soon. West Coast could see some increases soon too.”



via Oklahoma's Center Square News
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Oklahoma lawmakers could have $10B for next state budget

12/29/2021

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(The Center Square) – Oklahoma lawmakers will have an estimated $10.3 billion at their disposal when budget talks begin for the next fiscal year, according to a statement from Gov. Kevin Stitt.

The state Board of Equalization estimated certified and authorized funds Monday at $9.1 billion, but the state has an additional $1.106 billion in one-time carryover funds in what Stitt called "special cash from the fiscal year 2021 budget."

“This past fiscal year, Oklahoma’s economy has bounced back in a big way and continues to improve,” Stitt said in a statement. “State revenues are climbing while we are cutting taxes for every Oklahoman.”

Stitt said he is committed to remaining fiscally responsible.

“We have changed the perception for how taxpayer dollars should be spent in Oklahoma,” Stitt said. “I’m proud of Senate Appropriations Chairman Roger Thompson, Senate Appropriations Vice-Chair Chuck Hall, House Appropriation Chairman Kevin Wallace and House Appropriations Vice-Chair Kyle Hilbert for their fiscal discipline last year and thinking long term.”

Sen. Roger Thompson, who chairs the Senate Appropriations Committee, told KWTV the budget estimates were good but he wants to be very cautious. He said he is considering raises for some state employees.

Rep. Brian Hill, R-Mustang, said he agreed the state must be fiscally conservative even with the huge influx of cash.

“We must continue to be prudent in the appropriations of taxpayer dollars to insure consistent strong core services while decreasing taxes where fiscally responsible,” Hill said in a Facebook post.

Stitt signed a $9.1 billion budget earlier this year for fiscal year 2022, which ends on June 30.

The Board of Equalization meets again in February to certify the final estimate. Lawmakers return to Oklahoma City on Feb. 7 to begin the legislative session.



via Oklahoma's Center Square News
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Heres How Life Expectancy in Oklahoma Compares to the Nation

12/28/2021

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Life expectancy is one of the most important and commonly cited indicators of population health -- and in the United States, life expectancy is falling at a historic rate. According to the Centers for Disease Control and Prevention, life expectancy at birth declined by 1.5 years in 2020, the largest one-year decline since World War II.

The CDC attributes the decline to the COVID-19 pandemic and 93,000 drug overdose deaths -- an all-time one-year high. Homicide, diabetes, and liver disease were also contributing factors. Here is a look at the states with the most drug overdose deaths in 2020.

While the national trend is alarming, there are considerable regional variations in life expectancy across the country.

As of 2019, the most recent available year of state-level data, life expectancy at birth in Oklahoma is 76.1 years, the 43rd highest among states and well below the comparable national average of 79.2 years.

Both at an individual and population level, life expectancy is closely linked to certain behavioral factors. For example, smoking is the leading cause of death in the United States, and adults in Oklahoma are more likely to smoke than average. An estimated 19.9% of the 18 and older population in the state are smokers -- meaning they smoke every day or most days and have smoked at least 100 cigarettes in their lifetime. Nationwide, 16.6% of the adult population are smokers.

Data on average life expectancy at birth is from the Robert Wood Johnson Foundation and the University of Wisconsin Population Health Institute joint program's 2021 County Health Rankings & Roadmaps report. Additional data is from both CHR and the U.S. Census Bureau's 2019 American Community Survey.

RankStateLife expectancy at birth (yrs.)Adults who smoke (%)Median household income ($)Poverty rate (%)1Hawaii82.314.483,1029.32California81.711.580,44011.83New York81.413.072,10813.04Connecticut80.912.578,83310.04Minnesota80.915.574,5939.06Massachusetts80.613.785,8439.46Colorado80.614.777,1279.38New Jersey80.513.285,7519.29Washington80.412.178,6879.810Florida80.214.959,22712.711Utah80.19.175,7808.912Arizona80.014.562,05513.513Oregon79.915.767,05811.414Rhode Island79.815.271,16910.814Vermont79.814.763,00110.216North Dakota79.719.764,57710.616New Hampshire79.716.677,9337.318Nebraska79.616.663,2299.918Virginia79.615.176,4569.920Wisconsin79.517.264,16810.421Illinois79.415.969,18711.521Idaho79.415.060,99911.221Iowa79.417.461,69111.224Texas79.214.264,03413.624Maryland79.212.686,7389.026Alaska79.018.575,46310.127Montana78.918.957,15312.627South Dakota78.920.259,53311.927Wyoming78.919.265,00310.130Nevada78.715.763,27612.530Maine78.719.458,92410.932Pennsylvania78.517.963,46312.032Kansas78.517.962,08711.432Delaware78.517.470,17611.335North Carolina78.117.957,34113.635Michigan78.120.159,58413.037New Mexico78.015.951,94518.238Georgia77.916.361,98013.339Missouri77.320.157,40912.940South Carolina77.118.756,22713.840Indiana77.121.757,60311.942Ohio77.021.458,64213.143Louisiana76.121.151,07319.043Arkansas76.123.748,95216.243Oklahoma76.119.954,44915.246Tennessee76.020.856,07113.947Kentucky75.624.152,29516.347Alabama75.620.051,73415.549Mississippi74.921.045,79219.650West Virginia74.826.948,85016.0



via Oklahoma's Center Square News
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Weekly claims up but Oklahoma has one of the lowest jobless rates in the U.S.

12/23/2021

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(The Center Square) – The number of initial unemployment claims filed by Oklahoma residents increased by 672 during the week ending Dec. 18, according to information released Thursday by the U.S. Department of Labor.

The latest statistics, which are not seasonally adjusted, show that 2,441 people filed for new unemployment benefits in the state, up from 1,769 filed the week of Dec. 11.

Oklahoma’s unemployment rate was the third-lowest in the U.S. as of Dec. 17 at 2.5%, according to the U.S. Bureau of Labor Statistics. The number was a record low for the state, according to a news release from Gov. Kevin Stitt.

The number of unemployed Oklahomans was also the lowest since March of 1980 at 46,268.

“To see any decrease in unemployment when Oklahoma has already fallen below rates prior to the pandemic, shows the prioritization of workforce growth by the Stitt administration and OESC,” Oklahoma Employment Security Commission Executive Director Shelley Zumwalt said. “Additionally, we are seeing growth in hourly wages in the private sector that eclipse the prior wages from the last 12 months.”

The state’s continuing unemployment claims for the week ending Dec. 11 were 12,167, a decrease of 1,832 from the previous week.

The numbers are encouraging, but there’s still work to do, Stitt said in the news release.

“While we celebrate record low unemployment, we must also remain focused on expanding and training Oklahoma’s workforce to make sure businesses can hire and retain the employees they need to keep our economy thriving,” the governor said.

The number of seasonally adjusted initial claims filed nationally the week ending Dec. 18 was 205,000, according to the Labor Department.

The number of continuing unemployment claims in the U.S. dropped 8,000 from the previous week to 1,859,000 for the week ending Dec. 11. It’s the lowest level since March 14, 2020, according to the Labor Department.



via Oklahoma's Center Square News
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Oklahoma oil and gas industry ranked 2nd in most desirable places to invest

12/22/2021

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(The Center Square) – Oklahoma is second only to Texas in desirability to invest in the oil and gas industry, The Fraser Institute concluded in a recent study.

Oklahoma’s land division makes the state a good prospect for oil and gas, a state energy official said.

"We have a very small amount of federal land, and the current administration is not very kind to the concept of leasing federal lands to companies to drill for oil and gas," Dewey Bartlett, chairman of Oklahoma Energy Producers Alliance, told The Center Square. "Most of Oklahoma's land is either privately owned, or in some cases, owned by the state of Oklahoma, and the state of Oklahoma is very supportive of drilling for oil and natural gas."

So supportive, Bartlett said, that the industry is a part of the state's collective DNA.

"The general regulatory environment is very positive," Bartlett said. "The oil and gas industry is regulated by the Oklahoma Corporation Commission, and they are very supportive of the oil and gas industry, very supportive of drilling and production. They do understand the industry and how it works, and they do understand that developing mineral rights in the state of Oklahoma is very good business. It supports jobs, it pays huge amounts of money to the mineral owners, plus every barrel of oil and NCF gas that's sold triggers a very significant amount of money as a gross production tax to the state of Oklahoma."

Bartlett said future investment in the industry will bring a significant amount of money to the state, for both payroll and various jobs.

"Most of the drilling activity is done in rural Oklahoma, and the industry does pay very good salaries," Bartlett said. "They have very good benefits. And in many areas of rural Oklahoma, there really aren't too many options for good, high-paying jobs. So when the oil and gas industry shows up, they usually stick around for several decades and provide a very good living for people in those areas."

Looking to the future and toward alternate sources of energy, Bartlett said all forms of energy need to have a seat at the table.

"I think that practically anybody that's in the oil and gas business will understand that the alternatives are a very smart idea," Bartlett said. "They really understand the concept of energy and how necessary it is to our well-being, to our country, to our national security, etc. And we understand very well that we don't want to rely upon just one source, or a few sources of energy when so many are available to us."



via Oklahoma's Center Square News
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This Is What It Costs To Retire in Oklahoma

12/22/2021

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A 2019 report from the Federal Reserve found that nearly one in every four American adults have no retirement savings. During the economic crisis brought on by the COVID-19 pandemic, that share has likely grown. Despite stimulus payments and enhanced unemployment benefits, millions of Americans have reduced retirement account contributions or stopped them entirely -- some have even been forced to make withdrawals. Here is what you can do if the coronavirus is threatening your retirement.

At age 65, Americans are expected to live an average of another 19.4 years, and the typical retirement-age American spends $50,220 a year. Multiply those figures, and add in a little extra for unforeseen expenses and additional financial security, and a comfortable retirement costs an estimated $1,120,408 in the United States.

With a cost of living nearly 13% below the national average, Oklahoma is one of the least expensive states to retire in. For the average 65 year old in the state, a comfortable retirement is projected to cost an estimated $901,455, about $219,000 less than it would cost the typical 65 year old American.

Housing is particularly inexpensive in the state. The typical home in Oklahoma is worth just $147,000, while the typical American home is worth $240,500. For the typical 65 year old without a mortgage, monthly housing costs come to $407, nearly $100 less than the comparable national median.

State level calculations in this story are based on the average annual expenditure of $50,220 for Americans 65 years and older in 2019, as reported in the BLS Consumer Expenditure Survey. This figure is adjusted by state to account for both cost of living and life expectancy at age 65, and then multiplied by 115% in order to reflect greater financial stability and comfort in retirement. All data in this story is from the Bureau of Labor Statistics, Bureau of Economic Analysis, and the Institute for Health Metrics and Evaluation.

RankStateHow much you need to comfortably retireLife expectancy at age 65 (yrs.)Cost of living1Hawaii$1,481,33686.519.3% more than avg.2California$1,391,54785.716.4% more than avg.3New York$1,383,63585.616.3% more than avg.4New Jersey$1,359,96885.316.0% more than avg.5Massachusetts$1,268,81084.910.4% more than avg.6Washington$1,245,82584.98.4% more than avg.7Connecticut$1,237,06985.45.0% more than avg.8Maryland$1,219,12084.67.7% more than avg.9Florida$1,184,11085.31% more than avg.10New Hampshire$1,180,93384.26.5% more than avg.11Vermont$1,178,95884.83.1% more than avg.12Colorado$1,177,00685.01.9% more than avg.13Alaska$1,159,33984.15.1% more than avg.14Oregon$1,150,96084.52.2% more than avg.15Minnesota$1,148,93885.32.0% less than avg.16Rhode Island$1,146,67484.61.3% more than avg.17Virginia$1,140,82484.51.3% more than avg.18Arizona$1,117,88485.13.7% less than avg.19Delaware$1,113,68684.40.6% less than avg.20Illinois$1,096,90384.52.6% less than avg.21Utah$1,086,76784.53.5% less than avg.22Maine$1,072,42183.70.7% less than avg.23Texas$1,070,04884.23.5% less than avg.24Pennsylvania$1,064,38884.03.0% less than avg.25Nevada$1,063,15283.92.6% less than avg.26Wisconsin$1,045,57884.78.1% less than avg.27New Mexico$1,036,47684.78.9% less than avg.28Idaho$1,033,01684.47.8% less than avg.29Wyoming$1,029,02084.27.2% less than avg.30Michigan$1,007,48483.97.7% less than avg.31North Dakota$1,005,68284.510.7% less than avg.32Nebraska$1,002,76584.410.5% less than avg.33Iowa$1,002,30384.511.0% less than avg.34North Carolina$1,000,93583.98.3% less than avg.35Montana$998,98383.56.5% less than avg.36Georgia$995,77783.56.8% less than avg.37South Dakota$983,71884.412.2% less than avg.38Kansas$978,79884.010.8% less than avg.39South Carolina$967,04583.38.5% less than avg.40Missouri$952,82183.611.3% less than avg.41Indiana$942,57583.411.3% less than avg.42Tennessee$937,66083.110.3% less than avg.43Ohio$929,17683.211.6% less than avg.44Louisiana$918,84483.112.1% less than avg.45Oklahoma$901,45582.912.8% less than avg.46Kentucky$883,33282.512.6% less than avg.47West Virginia$880,30082.512.9% less than avg.48Alabama$877,07282.714.2% less than avg.49Arkansas$875,61182.915.3% less than avg.50Mississippi$857,88682.615.6% less than avg.



via Oklahoma's Center Square News
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Oklahoma speaker pro tem wife indicted

12/21/2021

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(The Center Square) - Oklahoma House Speaker Pro Tempore Terry O’Donnell and his wife are facing criminal charges after he allegedly sponsored a bill that allowed his wife to become a tag agent.

O’Donnell, R-Catoosa, and his wife, Teresa McAfee O'Donnell, were indicted by an Oklahoma County grand jury late Friday.

Terry O’Donnell is charged with five felonies and three misdemeanors that include obtaining a thing of value exceeding $15,000, using access to computers to violate Oklahoma statutes, perjury, conspiracy against the state and violation of a provision of law regulating official conduct, according to the indictment. Teresa O’Donnell is charged with three felonies and a misdemeanor.

The allegations stem from a bill sponsored by Terry O’Donnell and passed by the General Assembly in April 2019 that removes a rule prohibiting spouses from becoming tag agents. Teresa O’Donnell became the tag agent for Catoosa, Oklahoma, three months after Gov. Kevin Stitt signed the bill into law.

Teresa O’Donnell’s mother, Georgia McAfee, served as the tag agent before her death July 30, 2019. Teresa O'Donnell is accused of falsely claiming to have a management role in the office when she only worked part-time, according to the indictment.

The bill also raised fees for sending tags through the mail and notary services, which Terry O’Donnell “knew full well that he had a personal or private interest,” according to the indictment. Theresa O’Donnell also estimated the office revenues at $177,000 when in fiscal year 2018 the office collected $283,000. Terry O’Donnell knew “Mrs. O'Donnell would personally receive and enjoy the difference between the gross revenues of said Motor License Agency,” the indictment said.

The building that houses the tax agent’s office also is owned by McAfee Properties Inc., an Oklahoma corporation then owned by the Georgia E. McAfee Living Trust, in which "McAfee family members within the third degree of affinity to Representative O'Donnell had a beneficial interest," the indictment read.

Terry O’Donnell was elected to the House of Representatives in 2013, according to his House of Representatives page. He was named the speaker pro tem in November 2020. He serves as an ex-officio voting member on all committees, including state and federal redistricting.



via Oklahoma's Center Square News
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Oklahoma Corporation Commission says agreement will save ratepayers thousands

12/18/2021

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(The Center Square) – Customers of Oklahoma Gas and Electric (OG&E) won’t absorb the cost of February’s winter storms immediately but will pay over the next 28 years, a move the chair of the Oklahoma Corporation Commission (OCC) said would save ratepayers hundreds of dollars on their bills.

The order between OG&E and the OCC is possible because of a new securitization law passed by the Oklahoma Legislature and signed into law by Gov. Kevin Stitt in April that allows ratepayer-backed bonds to offset the costs.

“It’s estimated that simply passing through $748.9 million in fuel costs would have resulted in the average residential consumer being charged an unmanageable amount of more than $400 dollars in one month just for the storm,” OCC Chair Dana Murphy said in a news release. “Under the agreement, that is lowered to $2.12 a month, with the reimbursement spread out over 28 years using the state’s new securitization law.”

Complicating the situation is an increase in natural gas prices.

“Natural gas pricing falls outside of commission jurisdiction,” Murphy said. “Our agency’s auditors have worked to ensure that OG&E is not making any profit on the fuel costs and that the purchase of the fuel met the other requirements of state law. But there is no changing the fact that for electricity to be able to be supplied during the storm, those purchases had to be made at prices that were unimaginable before the event.”

OG&E also will take steps to reduce the effect of similar events, according to corporation Commissioner Todd Hiett.

“Further, OG&E has agreed to apply any savings that result from future federal or legal action associated with the February fuel costs to the credit of customers,” Hiett said.

The resolution would “put further financial pressure on older Oklahomans on fixed incomes,” AARP Oklahoma said in a statement on its website.

“AARP Oklahoma is extremely disappointed with today’s ruling by the majority of Oklahoma’s Corporation Commissioners which forces more than 870,000 Oklahomans to pick up the tab for all the costs from the February 2020 storm while OG&E pocketed $224 million in profit last quarter alone,” State Director Sean Voskuhl said.



via Oklahoma's Center Square News
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