By Constitution Staff

In June, the Research Institute for Economic Development (RIED) released their legislative scorecard showing that eight members of the state Senate and six members of the state House of Representatives scored a perfect 100 on the 2014 RIED Report. The non-partisan organization produces the annual scorecard, grading Oklahoma legislators' votes on business issues. But, many challenge RIED's validity. Rather than being a pro-business scorecard, the RIED Report is better characterized as supporting corporate welfare. The scores were given to lawmakers who served in the second session of the 54th Oklahoma Legislature that adjourned on May 23rd.

Former state Rep. Susan Winchester, who is RIED president said: "While there were a wide variety of business and non-business issues debated during the 2014 legislative session, economic development, business initiatives and job creation once again remained a key focus for lawmakers." Greg Love, RIED board chairman said: "As I have said many times during my association with RIED, it is vital the state legislature be proactive in creating a business environment in Oklahoma that ensures economic development and quality employment opportunities for our citizens." Love is President of Love's Travel Stops and Country Stores.

Senate members receiving perfect scores from REID are Speaker Pro-Tempore Brian Bingman (R-Sapulpa), Kim David (R-Broken Arrow), Eddie Fields (R-Wynona), David Holt (R-Oklahoma City), Rob Johnson (R-Yukon), Ron Justice (R-Chickasha), Mike Schulz (R-Altus), and Ron Sharp (R-Shawnee). House members receiving perfect scores are House Speaker Jeff Hickman (R-Fairview), Scott Biggs (R-Chickasha), Lee Denny (R-Cushing), Scott Martin (R-Norman), Randy McDaniel (R-Edmond), and Harold Wright (R-Weatherford).

It is interesting to note that all in this group are Republicans. It is also interesting that none of this group received a perfect score on the 2014 Oklahoma Conservative Index published by the Oklahoma Constitution newspaper. In fact, most of those with perfect scores on the RIED Report can be characterized as being RINOs (Republicans In Name Only). For example, in the Senate, Bingman's Conservative Index score is 53%, David received a 46% rating, Fields 50%, Holt 60%, Johnson 43%, Justice 63%, Schulz 40%, and Sharp 60%. In the House, Speaker Hickman scored 60%, Biggs 60%, Denny 39%, Martin 60%, McDaniel 60%, and Wright 60%.

The RIED Report claims to "create a profile of each legislator's individual voting record for bills dealing with business, industry, job creation and economic growth issues deemed important by the private sector." Significantly, the RIED makes no claim to support the concept of free enterprise, leading to the charge by many legislators that the index actually measures support for corporate welfare instead. Perhaps most importantly, while the report compilers claim their research is "supported by qualified data," they do not reveal the details.

The RIED Report has a notorious track record for failing to make information available as to how they score the legislators. In previous years, legislators have told the Oklahoma Constitution that they have been refused when they asked to see how their score was calculated. This year RIED provides a list of 18 bill numbers for legislation supposedly "utilized for final 2014 RIED evaluations." There is no description of the bills, no explanation or justification for the use of each vote, no indication how a legislator should have voted on the bills, nor how individual legislators voted. There is no indication if all the bills were weighted equally, or if some were worth more points. Under the RIED evaluation system, legislators earn positive points when they support job creation and economic development issues. Points are deducted when they introduce or vote for legislation that negatively impacts Oklahoma's business climate. They say a score of 70 and above represents a passing grade while 69 and below represents a failing grade.

In stark contrast to the RIED Report, the Oklahoma Constitution publishes the exact votes used on the Conservative Index, and gives an explanation of the reasoning used in placing the vote on the Index. Anyone, including legislators of either party, are welcome to suggest bills and votes for the Conservative Index. The issues are debated publicly at two meetings of the Oklahoma Conservative Political Action Committee (OCPAC), which then holds a vote of its membership to recommend the ten bills to be used.

The RIED Report on the other hand, is compiled in secrecy, leading to speculation as to who is really behind its compilation, and what the exact motives are of those compiling it. In fact, many of the legislative votes used for the RIED Report appear to be what many refer to as "corporate welfare," or the favoring of big business interests with tax credits or other such subsidies. It is very difficult for the average citizen to make an informed judgment as to what the scores actually mean.

Interestingly, four of the ten bills included on the Oklahoma Conservative Index were among the 18 bills that RIED says it utilized to compile its ratings. For two of the bills, both the business group and conservatives were in agreement. Both supported SB 1246 cutting the state income tax, and HB 2630 reforming the state employee pension system. The Oklahoma Conservative Index and RIED apparently took opposite positions on the other two bills. Conservatives opposed HB 2580 which extended rebates for the movie industry. Under the $5 million per year subsidy program the state pays 35 percent of the production costs for qualifying companies to produce films, television productions, or television commercials in Oklahoma. The highest amount awarded for a single production was last year's August, Osage County for which the movie company was paid $4.6 million. The other bill was HB 2480 which provides for the creation of Regional Transportation and Economic Development Districts funded by an additional sales tax not to exceed 2%. With the groups taking opposing positions on bills used for the respective ratings, it is clear that a legislator cannot receive a 100% score on both. It is also clear the RIED will oppose conservative legislators and back liberal legislators as long as they support the positions advanced by RIED.

Eight legislators (six in the House and two in the Senate) received perfect 100% ratings on the Oklahoma Conservative Index: Rep. David Brumbaugh (R-Broken Arrow), Rep. Dan Fisher (R-El Reno), Rep. Sally Kern (R-Oklahoma City), Rep. Jason Murphey (R-Guthrie), Rep. Mike Ritze (R-Broken Arrow), Rep. Mike Turner (R-Oklahoma City), Sen. Bill Brown (R-Broken Arrow), and Sen. Nathan Dahm (R-Broken Arrow). Most received a failing grade from RIED. In the House, RIED gave Brumbaugh 69%, Fisher 55%, Kern 55%, Murphey 55%, Ritze 51%, and Turner 71%. In the Senate, Brown received 80% and Dahm 65%.

RIED was founded in 1997 by the Greater Oklahoma City Chamber of Commerce, the Tulsa Metropolitan Chamber of Commerce, and the Oklahoma State Chamber of Commerce. In addition to Love and Winchester, other officers of note include Larry Nichols of Devon Energy which built the tallest building in Oklahoma City for its headquarters, and Clayton Bennett of Dorchester Capital,and is also chairman of the ownership group for the Oklahoma City Thunder, an NBA franchise. The complete 2014 RIED Report is available at www.riedreport.com.