CONTACT:
Damon Gardenhire, press secretary
Speaker of the House Todd Hiett
Oklahoma House of Representatives
Capitol: (405) 962.7679
gardenhire@okhouse.gov


House Speaker Todd Hiett
Seeks Solutions on Higher Education Bond Issue


OKLAHOMA CITY (March 9, 2005) - House Speaker Todd Hiett (R-Kellyville)
today expressed concern about the partisan tone and bickering in recent
days over a proposed higher education bond issue, brought on by numerous
erratic actions by Democrat Governor Brad Henry and State Senator Pro
Tempore Cal Hobson.

"For the third time in less than a week, instead of working to reach a
bi-partisan solution, the Governor has issued partisan political press
releases," said Hiett. "He has walked away from the negotiating table;
this while serious constitutional questions surround his own plan."

Hiett believes his plan, the Promise of Excellence plan contained in
House Bill 2050, is constitutionally sound. The plan offers a $500
million solution for higher education capital needs - including $450
million in capital investment and $50 million to provide a long-term
funding solution.

"The Governor and Senator Hobson have put forward a plan that will not
pass constitutional muster," Hiett added. "As the Governor and his
advisers are aware, we have difficult and serious constitutional
questions about Senate Bill 745 - the Henry/Hobson bond plan for higher
education. The entire Henry/Hobson plan depends on a constitutional
house of cards that could come crashing down in a legal challenge."

"Unfortunately, the proponents of the higher education bond issue did
not plan ahead wisely," Hiett said. The Speaker said that the
constitutional provision for the state lottery - Article 10, Section 41
- only allows for capital outlays, not debt financing. Henry and Hobson
say they plan to use the state lottery proceeds to fund the higher
education bond issue.

"Capital outlays can be handled on a 'pay as you go' basis," said Hiett.
"The Henry/Hobson bond issue plan hopes against hope that a court won't
notice that the constitution does not provide for debt financing. In
other words, it won't allow for the bond issue."

Speaker Hiett has proposed the $500 million Promise of Excellence plan
in House Bill 2050, already approved by the Appropriations and Budget
Committee. Hiett said it will move through the House next week.

"Our $500 million plan can be on the Governor's desk next week, and
Oklahoma can have a bond issue quickly," said Hiett. "The Promise of
Excellence plan offers a permanent solution to funding higher
education's capital needs."

Last week, Governor Henry followed a bi-partisan effort to reach an
agreement on a higher education bond issue with partisan attacks - and
calls to "speed" approval of a higher education bond issue. Today, the
Governor's director of the Office of State Finance attacked the
constitutionality of the bold Promise of Excellence plan put forward by
Speaker Hiett.

"We had been working hard to come up with an agreement," Hiett said.
"But now the Governor has said 'speed' is necessary, calling for this
process to rush through, using high-pressure sales tactics."

The entire bond issue as proposed by Henry and Hobson, Hiett said,
depends on the fragile expectation that a bond issue will hold up in
court.

"That's no way to approach a half billion dollars in debt," said Hiett.
"Ask the hardworking taxpayer, ask most Oklahomans, and they'll tell you
it just makes sense to take politics out of the process and to make sure
that any new debt for our state is approached responsibly, not rushed,
not with speed."

Hiett continued: "We believe that committing the taxpayers of Oklahoma
to half a billion dollars in debt without a responsible, businesslike
approach would be rash and reckless. In fact, the bond issue proposed by
Governor Henry and Senator Hobson would add up nearly 800-million
dollars by the time it was paid off. We're committed to fixing a flawed
system -- the system that encourages crisis to crisis thinking here at
the state capitol."

Hiett said he's committed to ending that harmful cycle with his
comprehensive Promise of Excellence plan.

"We have examined the problem and we'll fix it. For the long term," said
Hiett. "Three weeks ago, we stepped forward in good faith with a
comprehensive plan for substantive reform, a plan to move higher
education in our state into the new century, to give Oklahoma the best
system of colleges and universities so that we can compete in the 21st
century marketplace."

Hiett said the Promise of Excellence plan would fix a flawed system once
and for all.

"We want the taxpayers to know that on our watch we're not going to
leave them on the hook for half a billion dollars in debt," said Hiett.
"We're not going to put the financial futures of Oklahoma families at
risk, just so the state can mortgage landscaping or new software for
computers over 30 years. That's simply not right."

-30-  ¶ 9:15 AM