Sunday, April 26, 2026

DON'T REFORM TSET IN A SMOKE FILLED BACK ROOM!

 Weekly Opinion Editorial


POT MEET KETTLE!


by Steve Fair

 

The Oklahoma Tobacco Settlement Endowment Trust (TSET) was created in 2001 after voters in November 2000 approved State Question #692 (SQ692) by a 2 to 1 margin.  It set aside 75% of the settlement funds into a constitutionally protected trust.  TSET is governed by two boards- one group handles investing the assets- the other the expenditure of funds and approval of grants. 

SQ692 specified only 'earnings on investments' from TSET were to be spent.  The monies were to be used for tobacco prevention, cancer research, and other health-related programs. TSET uses the money, through grants and programs, to improve the health and quality of life of all Oklahomans by funding programs and services that address, prevent and reduce tobacco use and obesity – health behaviors that contribute to the leading causes of death in Oklahoma, cancer and cardiovascular disease. TSET funds programs like the Oklahoma Tobacco Helpline, Tobacco Stops with Me, and Shape Your Future.

On Thursday, the Oklahoma State Senate rules committee passed 14-4 House Joint Resolution 1077 (HJR1077), authored by Rep. Trey Caldwell, (R-Faxon) and Sen. Lonnie Paxton, (R-Tuttle).  HJR1077 would send to Oklahoma voters a proposal to take $1 billion dollars out of the TSET trust fund (about 1/2 of the total assets of TSET) and place it under the state legislature's control.  Caldwell and Paxton state they want to invest the $1 billion to improve health and educational outcomes in Oklahoma.  “This is simply asking the voters if they would like to split this fund up so some of it can be used by the Legislature to help out in their communities,” Paxton said.  If approved, HJR1077 would appear on the August 25th primary runoff ballot.  Three observations:

First, the legislature is relentless in pursuing the TSET money.  In March, a state House report alleged TSET's overhead is high.  The report claimed 15% of TSET's funds go to administration.  It also suggested TSET's mission overlaps with the State Department of Health.  Last year, after the TSET board, the governor and the legislature clashed over funding for a hospital, HB#2783 was passed.  It amended the seven-year terms of office of the TSET board.  In January, the Oklahoma Supreme Court ruled 8-1 HB#2783, was unconstitutional.  The legislature sees this big pile of money and they can't control themselves.  They have to go after it.

Second, TSET needs reformation.  How TSET has spent money hasn't produced great results.  According to the American Lung Association, 15.6% of Oklahoma adults smoke cigarettes.  In Texas, that number is 11.8%.  Oklahoma has the highest rate of e-cigarette smokers in the U.S.- 10.1%.  About 1 in 4 Okies were puffing away in 2000 when SQ692 passed and while less are firing cigs up 25 years later, Oklahoma's percentage of smokers remains near the highest in the nation.  TSET needs to use more of their assets on rural health care and less TV ads on Thunder broadcasts. 

Third, changes to TSET must be transparent.  The idea to place HJR1077on the primary runoff ballot should be scrapped.  What is HJR1077 hiding? Placing the SQ on a low turnout ballot might help get it passed, but it is not good public policy.  What are the proponents scared of?  Voters already believe deals are made in smoke filled back rooms and tactics like putting issues on low turnout ballots validate those concerns.  If changes to TSET are needed and valid, then the legislature has nothing to fear.  The reason a quarter of century ago voters put the TSET money in a trust fund is because they didn't trust the legislature.  Putting HJR1077 on the primary runoff ballot validates that distrust.

Legislators claim TSET is bureaucratic, doesn't spend money wisely, and doesn't respond to the needs of Oklahomans.  Sound a lot like the legislature.  Oh, the irony.  Pot meet kettle.

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