McGuigan: Josh Brecheen – Right from the Git-Go

Patrick McGuigan, respected conservative journalist and inductee of the Oklahoma Journalism Hall of Fame, is out with an editorial endorsing Josh Brecheen for Congress in the 2nd District runoff election. 

As a general rule, there is something to commend about both candidates in any given runoff election in Oklahoma. But not always.

McGuigan analyzes Auditor race, candidate Prater's lawsuit troubles

Longtime analyst and writer Patrick McGuigan has a great write-up on the Auditor's race, posted below:

Analysis: In “sleeper” race, one candidate for state Auditor and Inspector sued for default on business loan

by Patrick B. McGuigan, published on June 4th

The “sleeper” statewide race for Oklahoma Auditor and Inspector has begun to garner some attention, as detailed information comes to light concerning two of the three Republican candidates in the field.

As the primary election on June 26 nears, one Republican candidate is currently embroiled in a lawsuit in Oklahoma County District Court. A second GOP hopeful appeared in 2016, as a Democrat in a state Senate race.

The legal entanglement of the first referenced Republican, Charlie Prater, concerns a debt that he accrued in a failed business venture. In court filings, he claims his original debt agreement was "induced and obtained by the fraud, misrepresentation, and breach of fiduciary duties of the lender and the managers of the borrower." (That is quoted from Defendant Charles Prater's Answer to Amended Petition and Third-Party Petition Point 15 on November 20, 2017). The barrage of claims and the lawsuit activity in court, along with Prater's responses, is leading close observers of the race to question Prater's ability to perform the state Auditor and Inspector’s duties. The job includes ferreting out fraud and identifying government waste.

Charlie Prater is no relation to District Attorney David Prater, chief prosecutor in the same Oklahoma County where Charlie Prater's lawsuit is being adjudicated. To be clear on this point (where fuzzy answers and campaign chit-chat have fed scattered beliefs there are familial ties among the two men), CapitolBeatOK asked D.A. David about it.

The D.A. replied with restraint, and old-school wit: “"For the record. I've never met him. I couldn't ID him in a one person lineup."

As for the legal imbroglio, that case centers in part around allegations that Republican Charlie Prater of Edmond defaulted on his portion of a loan, in excess of $1.3 million, that had financed a now-failed business venture.

The lawsuit names Prater (Charlie) as a defendant for defaulting on about $124,000 (his share at time of lawsuit filing), initially owed to Liberty Bank. He had given his personal guarantee to repay that loan.

To sum up the details, Prater was part of a medical practice venture that included doctors and other investors who had originally borrowed over $2 million. The venture failed, leaving ABC Consolidated, who bought the loan from Liberty Bank, holding a note of $1.25 million. Of the 15 or so investors in the venture, only Prater and one other person have since failed to repay their part of the loan.

Adding to the troubles in recent days: In a May 24 hearing, Prater’s attorney was disqualified from the case because of conflict of interest issues.

Meanwhile, Prater has counter-sued 19 defendants in the case claiming he was defrauded by the other partners and by Liberty Bank – even though he admits in a court filing that he signed the promissory note to repay the debt.

Prater has also added to his campaign committee at least $70,000 of his own money, even while failing to make good on his loan agreement for the failed business.

Revelation of the ongoing legal battle over mismanagement and loan default comes hot on the heels of a negative “push poll” accusing the front-runner in the race – Cindy Byrd of Coalgate (presently the Deputy State Auditor) of only recently obtaining her Certified Public Accounting license (actually, she’s been a CPA for almost 15 years), pocketing “tens of thousands of dollars” by driving a personal vehicle instead of a state car (it was a requirement of the agency), and working for more Democratic state Auditors than Republicans (the shift to Republican majorities in statewide offices has only occurred in the last decade).

Prater’s legal and financial troubles will drag on beyond the June 26 primary, which may be part of the plan by someone, somewhere -- as he has sought several delays in the case proceedings.

The position of State Auditor is often tagged as a “secondary” race in comparison to the contest for race for Governor or the current brawl unfolding in the Republican Primary for Attorney General.
This status may result in issues among contending candidates passing unnoticed. Yet, the race will fill an important slot in governance of the Sooner State.

It is the one statewide elective office entrusted with explicit (not implied) responsibilities as a watchdog over expenditures of taxpayer dollars. The auditor’s office can -- and in recent years often does -- expose those who would personally benefit from public office.

The final candidate in the race, John Uzzo, ran in 2016 on the Democratic ticket for a state Senate seat in Tahlequah. He failed to raise enough in that race to file an ethics report, and subsequently lost in the primary.

Now, Uzzo is running as a Republican, but some question his fitness or qualification to serve. He has only been a registered voter since 2013, and not the requisite 10 years required as an elector to hold the office.

The third candidate in the June 26 primary, Byrd, is a long-time CPA, a member of the American Board of Forensic Accountants (OSCPA), and of AICPA.

Her audits have led to the indictment and or required resignations of six public officials who were engaged in waste and/or corruption. Byrd oversaw a team that completed 304 of the 411 recent audits performed by the State Auditor’s Office. Both former Governor Frank Keating and current State Auditor and Inspector Gary Jones have endorsed her.

Readers wishing to study all the details of that lawsuit involving Charlie Prater can do so by accessing this online link: http://www.oscn.net/dockets/GetCaseInformation.aspx?db=oklahoma&number=CJ-2017-5441&cmid=3583147

McGuigan: Will Oklahoma take a faulty Step Up, or use growing revenues wisely?

Broken promises and good government – Will Oklahoma take a faulty Step Up, or use growing revenues wisely?

by Patrick B. McGuigan, CapitolBeatOK.com

OKLAHOMA CITY – The state House may vote, this week (perhaps even on Monday, February 12) to increase state revenues by about $700 million.

If envisioned proposals from the Step Up Oklahoma group are ultimately enacted, the final bell will toll for promises made in the historic campaigns of 2010 and 2014, when Governor Mary Fallin and others in the Grand Old Party pledged to right-size government.

Last month, Lt. Gov. Todd Lamb said he was against the Step Up plans. Soon, every Republican candidate for the state’s chief executive post had reasserted or for the first time stated clearly opposition to the Step Up ideas.

Some thought I endorsed Lamb’s gubernatorial campaign when I praised his comments, but I did not and have not.

I have more frequently credited “the two Garys”  – Tulsa lawyer Richardson and Auditor & Inspector Jones – for advocating investigative audits of government agencies.

As the great Oklahoma publisher Leland Gourley often said, commentaries/editorials are one person’s opinion.

An informed opinion follows: I believe it amounts to imposition of a “fraud tax” or “fraud fee” on taxpayers to increase taxes without stricter scrutiny of government agencies. That scrutiny should come first, not tax hikes.

I respect the motivations of those with contrary views, even when some do not respect mine. Spending scandals in government are not inevitable. All the cost-drivers in Oklahoma government should be regularly (and independently) audited. They are not.

In a recent survey for the Step Up group, Bill Shapard’s Sooner Poll found strong majority support for the organization’s tax proposals. He presented his analysis to reporters and advocates of the plan last week (http://s3.amazonaws.com/content.newsok.com/documents/Step%20Up%20Oklahoma%20Sooner%20Poll%20report.PDF).

On the flip-side, opponents of tax hikes were intrigued, over the weekend, when John Collison circulated a one-question poll (www.1q.com) of 400 Oklahomans. He says, “almost 70 percent of Oklahomans would vote AGAINST their elected representatives if they raise taxes.” (http://nonewoktaxes.org/wp-content/uploads/2018/02/Doc1.pdf)

In political circles, pollsters whisper there is strong majority opposition to tax hikes among Republicans most likely to vote. This is well-known in the political class, but the numbers have not circulated.

Few news organizations noted a critical study of the Step Up plan conducted by the venerable Tax Foundation. As I reported in January, the foundation said envisioned changes would make the state tax system "more complex and progressive, not simpler or more neutral." (http://www.capitolbeatok.com/reports/tax-foundation-critiques-step-up-oklahoma-tax-plan)

A spokesman for Step Up did not return my multiple requests for comment on the critique from the Tax Foundation, which has studied fiscal and tax policy since 1937.

Not exactly obscure is the impressive growth in Oklahoma state government revenues as the oil and gas recovery advances, and the rest of the state economy grows.

I’ve given Treasurer Ken Miller (who supports the tax hikes, I’m told) a lot of grief for particular ideas these past seven years, but I respect the methodical and meticulous economist.

He’s no doubt enjoyed preparation of his recent monthly reports.

Gross receipts to the Oklahoma Treasury surged 12 percent in December, and jumped 6.2 percent for all of 2017, Miller has reported. In the state’s largest (and capital) city, sales tax revenues jumped 7.8 percent in December.

Then, for the January analysis, the good news got even better. Collections early in the New Year topped the same month of 2017 by more than 15 percent. The total tax receipts of $1.1 billion were big news – and the 12th time in 13 months that revenue increased. Prior to January 2017, monthly receipts had contracted for 20 consecutive months. (http://www.capitolbeatok.com/reports/treasurer-ken-miller-reports-monthly-gross-tax-receipts-enter-second-year-of-growth)

The state’s economy has rebounded, and that’s good news. This cause for celebration should mark a time for serious study of how to use growing revenues wisely. Instead of enhancing good economic trends, Oklahoma seems about to endorse a broken model of governance.

Many in the Legislature seem determined to raise taxes this year, as prelude to raising them next year.

The catalog of broken promises continues to grow.

Enough is, indeed, enough.

An award-winning journalist with more than three decades of experience in news reporting, policy analysis and commentary, Patrick McGuigan writes at CapitolBeatOK.com.

BONUS -- more from Bloggers Organized for Oklahoma Taxpayers:

• Step Up Oklahoma; Step Down For Oklahoma Taxpayer [Tapp Into Common Sense]
• Fun teacher-pay facts [Choice Remarks]
• The Rush To Raise Taxes Before the Treasurer Tells Us The Crisis Is Over [Sooner Politics]
• Fiscal Conservatism Is The Answer To Oklahoma Budget Woes [Tapp Into Common Sense]

McGuigan: It's time for Fallin to appoint Cathy Costello to Labor Commission

It's time for Gov. Fallin to appoint a Commissioner of Labor. 

Cathy Costello is the best choice.

by Patrick B. McGuigan 

OKLAHOMA CITY – A shocking murder took place in August, when Commissioner of Labor Mark Costello's eldest son, Christian, stabbed his father to death at a restaurant in north Oklahoma City.

Like many other journalists, I reported reactions from state officials and others at the time.

Among many issues highlighted across the philosophical spectrum was agreement that the state must reform provisions and practices relating to the treatment of mental health issues, including those that afflict Christian Costello.

Mark Costello was a remarkable man. Although I did not initially support him for election as commissioner, I became over the course of five years convinced he was the best combination of fiscal conservatism and even-tempered governance among the statewide elected officials. Many of his peers are fine individuals, yet Costello stood out (something many of them expressed after his death).

Aside from his ability as a leader, Mark Costello was a remarkable man who managed -- with wit, intelligence, grace and integrity – to forge alliances and a friendships across the spectrum of state politics and policy.

In September I supported Mark's widow, Cathy Costello, to fill the vacancy created by his death,
as did many others around the state.

Mrs. Costello had, shortly before, asked Fallin to appoint her to the post. She is the person most like Mark, the man voters chose twice for the job. She will build upon his remarkable and all-too-short time in public life.

Yes, I have a point of view. It is informed with knowledge of the issues and individuals involved – including the late Commissioner – and of public policy in this particular arena.

Oklahoma state law provides, “When any office shall become vacant, [the governor] shall, unless otherwise provided by law, appoint a person to fill such vacancy, who shall continue in office until a successor shall have been duly elected or appointed, and qualified according to law.”

State law also provides, “If any officer of the state, district, county, city, town or other governmental subdivision of this state shall die while in office, and shall leave a surviving spouse, the said surviving spouse shall be eligible (if otherwise qualified) to be appointed to and to hold said office during the term for which the said officer was elected.…”

These provisions are not arcane expressions of the intentions of those long dead.

They are the framework within which decisions are made for leadership in statewide posts, including Commissioner of Labor.

Others interested in this important appointment may examine provisions for themselves in several documents that can be accessed online.

On September 2, Governor Mary Fallin wrote to Stacy Bonner, a financial officer at the Department of Labor, asking her to serve as Acting Commissioner “until such time as I make a formal appointment” to the position.

Curiously, in the letter – a copy of which The City Sentinel has obtained – she referred to Bonner as Deputy Commissioner.

Deputy Commissioner posts can, for cost-saving or other reasons, remain vacant.

Deputy Commissioners are appointed by the head of the agency, that is, the elected or duly-appointed commissioner.

It is not clear that the late Commissioner Costello ever appointed Bonner to the post.

I have no reason to believe he ever did so.

Referring to Bonner as deputy commissioner does not make her so, unless my awareness of the late Commissioner's actions in this area is faulty.

I have no quarrel with Bonner, yet I advocate the wisdom of established practice and believe she should not be made commissioner.

A better option is available.

The governor has authority to make an appointment. She should do so soon.

I have a point of view and it is this:

Our governor should appoint Cathy Costello to fill out the term of her late husband. Mrs. Costello is qualified in her own right. She is the best choice to continue the progress made in workplace safety, advancement of the interests of workers and improvements in the Oklahoma economy.

NOTE: McGuigan served as Deputy Commissioner of Labor 2005-07. He was appointed to the position during the administration of the late Brenda Reneau.

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I completely agree with McGuigan's thoughts on this matter. I don't understand what's taking Governor Fallin so long to make any appointment, either.