At a time when seemingly endless budget cuts are squeezing our public schools to the breaking point, the Coalition for Community Schools continues to advance a rich and comprehensive approach to education.  Their vision is one in which schools are not just places for kids to learn during the school-week, but also community centers open to everyone – all day, every day – making the school the hub of the community.  If you’re having a hard time envisioning how a ‘community school’ differs from the norm, watch this short video about Tulsa’s Area Community Schools Initiative (TACSI).  The transformational potential of this approach is hard to miss.

View other clips from OKPolicy’s “Watch This’ video series:

What is an IDA?

Elderly parole

Long term unemployment, 1967-2011

Packed Oklahoma prisons, rising costs

What’s up this week at Oklahoma Policy Institute? The Weekly Wonk is dedicated to this week’s events, publications, and blog posts.

This week OK Policy explained what federal budget cuts could mean for Oklahoma.  Doug Hall of the Economic Policy Institute underscored the urgency of fixing America’s crumbling infrastructure.  Our director David Blatt spoke at a StateImpact Oklahoma forum about why proposals to reduce or eliminate the income tax would effectively raise taxes for most Oklahomans.

Also this week, we featured remarks by Maryland Governor Martin O’Malley on how health care reform improves business competitiveness.  We posted event information about the first annual Grandparenting Workshop at Oklahoma State University.

Numbers of the Day

• $107 – Average tax increase on sixty percent of Oklahoma households under a legislative proposal to eliminate a slate of broad-based tax credits and exemptions.
• 8,600 – Number of jobs lost in state and local government in Oklahoma over 2010.
• $22,007 – Annual average wage for home health aides in Oklahoma, just below the federal poverty level for a family of four in 2010, $22,050
• 11 percent – Percentage of ex-offenders released in Oklahoma who were re-incarcerated for technical violations of their probation/parole in 2004, up from 3 percent in 1999.
• $34 million – Amount needed to repair sewer lines and make major improvements to two facilities slated for closure that house medically fragile, mentally disabled Oklahoma residents.

In The Know, Policy Notes

• The Center for Economic and Policy Research shares five reasons we should be concerned about the rising share of low-wage work.
• Touchstone examines the austerity curve, or the point at which cutting government spending becomes self-defeating because it lowers growth, depresses tax revenues, and pushes up social security spending by more than the government is cutting.
• The Century Foundation shares a series of graphs that bust the myths about food stamps.
• The Kaiser Family Foundation released their annual survey of employer health benefits, with a detailed look at trends in employer-sponsored health coverage.

Arthur Laffer

Some Oklahoma politicians have trumpeted a report by economist Arthur Laffer to claim that eliminating the state income tax will fuel an economic boom. Laffer is best known for the Laffer Curve, which he famously sketched on a napkin while meeting with Dick Cheney in a hotel bar. It went on to form the basis of the Reagan administration’s trickle-down economics.

The Laffer Curve makes an obvious point: government revenues peak at a tax rate somewhere between zero and one-hundred percent. In the lower half of the curve, raising taxes will increase revenue, but go too high and the reduced economic activity due to excessive taxation will result in lower revenue.

The argument was not original to Laffer. It had been stated previously by thinkers ranging from 14th Century Arab philosopher Ibn Khaldun to John Maynard Keynes, the founder of modern macroeconomics. What made this idea influential in recent decades was not any special insight into economics, but its powerful appeal for politicians. Rather than explaining how tax cuts (popular) would be paid for by budget cuts or increases in other taxes (unpopular), they could simply claim that the tax cuts would pay for themselves. Read the rest of this entry »

James W. Utterback, Ph.D. is President of Seminole State College and Chair of the Oklahoma Educational Television Authority Board. The opinions expressed herein are those of the author and do not reflect the opinions of OETA or any other group or business.

In his acceptance of the Republican Presidential nomination in 1880, James A. Garfield stated that, “Next in importance to freedom and justice is popular education, without which neither freedom nor justice can be permanently maintained.”  The Oklahoma Educational Television Authority (OETA) plays a vital role in enhancing the public education mission of our state.

As Chairman of the Board for OETA, it has been exciting to witness over 24,000 Oklahoma families step forward to donate in excess of $2 million annually to support Oklahoma’s only statewide public television network.  An additional $1.5 million is donated annually by Oklahoma foundations and corporations. In spite of such overwhelming grassroots support, a small group of Oklahoma Legislators are calling for the elimination of funding for OETA.  As an educator and a concerned citizen who cares deeply about the future of our state, I believe this action would be reckless and irresponsible. Read the rest of this entry »

[This post has been changed slightly from the original. An earlier version questioned SoonerPoll's reliability without providing evidence to back up that claim.]

As part of the agreement to raise the federal debt ceiling, Congress will vote on a Balanced Budget Amendment this fall. Every Republican Senator has endorsed it. So have many Oklahoma state legislators.

So what’s the problem with a Balanced Budget Amendment?

#1: The BBA endorsed by Senate Republicans is not really about balancing the budget.

In fact, this amendment would make it much harder if not impossible to balance the budget, because it would require any tax increases to have a two-thirds majority in both houses of Congress.

On top of that, it says total spending cannot exceed 18 percent of GDP. To understand how radical this is, we should realize that not a single year’s budget under the George W. Bush or Reagan administrations would be constitutional under this rule. Even Rep. Paul Ryan’s budget plan, which included cuts so unpopular that they were quickly abandoned by Republicans, would have spent too much under this amendment. Read the rest of this entry »

Now that default has been averted and the agreement to raise the federal debt limit has been signed into law, attention here in Oklahoma has shifted, at least temporarily, from politics back to the weather (or, from the debt ceiling to the sweat ceiling). Although the full implications of the agreement will not be understood for months, or years, it is clear that the deal to lower the deficit will have far-reaching consequences for federal and state budgets and the economy. For those looking for concise analysis of  the agreement’s  fiscal and economic implications, here are a few pieces worth reading:

• Good short summaries of the basic mechanics of the deal are provided by this White House fact sheet and by the Center for American Progress; the full bill and accompanying materials can be found here.
• In a statement by Robert Greenstein, the Center on Budget and Policy Priorities argues that “the deal places the nation on a disturbing policy course and sets what may become important precedents that are cause for serious concern.” The Center is especially worried that the deficit reduction framework set up by the agreement paves the way for cuts of “an unprecedented depth” to discretionary spending programs and makes a balanced approach that includes additional revenues an unlikely outcome. Read the rest of this entry »

Anyone following the news finds daily stories of the public sector under assault.  Across the nation and in Oklahoma, cuts to state government continue into their third straight year, while in Washington, the rhetoric around budget cuts has reached a fevered pitch, much of it couched in terms of the need to downsize government to allow the private sector to thrive. We thought this an opportune time to re-post a blog entry that we first ran last summer that takes aim at the idea that cutting government jobs and spending  best serves the private sector.

Last month I gave a presentation to a meeting of the State Chamber of Commerce along with a representative from another state policy organization.  I was struck, and frankly dismayed, by the extent to which my co-presenter  spoke as if government and the private sector were opposing forces pitted against one another in a  zero-sum competition. In this view, taxes assessed on businesses and households extract dollars away from productive consumption and investment in the private sector in order to “grow government”.

It is certainly true that a vibrant private sector will always be the main engine of economic growth in a capitalist economy. Public spending can at times crowd out private investment, although, as economists like Brad DeLong argue, during times of sluggish economic growth like the present,  government spending can be vital for keeping the economy from grinding to a halt and for incentivizing private investment. But more fundamentally, this polarizing conception of “government versus the private sector” misses the important ways in which businesses, as well as families and communities, cannot thrive without a strong and effective public sector. You cannot have a vibrant, productive private sector without state and local government helping to:

• Educate our children and train our workforce;
• Police our neighborhoods, investigate crimes, and detain lawbreakers; Read the rest of this entry »

What’s up this week at Oklahoma Policy Institute? The Weekly Wonk is dedicated to this week’s events, publications, and blog posts.

This week at OK Policy, we reported that June General Revenue (GR) collections came in $66.2 million, or 13.0 percent, above the official certified estimate.  While revenues are on an upwards swing, they still face a steep upward climb and will have little, if any, impact on the current year budget.

Also this week, we detailed the toll of budget cuts to education on programs promoting high-quality teaching and schools.  If Oklahoma is to have any chance of improving our students’ educational performance, we need to support excellence in our teachers and administrators.  Read an interview on OK Policy’s Blog with Dr. Thomas Benediktson about the University of Tulsa’s new focus on urban education. Read the rest of this entry »

If Oklahoma is to have any chance of improving our students’ educational performance, we need to support excellence in our teachers and administrators. In recent years, Oklahoma has made such a commitment by investing in research-based professional development programs for teachers and school leaders. Unfortunately, three such successful programs – Literacy First, Great Expectations, and A+ Schools – have fallen victim to the  budget axe and are set to lose all state funding in the upcoming budget year.

The decision to eliminate funding for these programs must be viewed within the state Department of Education’s budget context. This year the Legislature cut appropriations to the Department of Education by $108 million, or 4.5 percent, compared to FY ’11. Within the total Common Education budget, the Legislature allocates a set amount for “the support of public school activities”, which encompasses the costs of the flexible benefit allowance for teachers and support staff, the teachers retirement credit, and all the educational programs that are funded outside the state aid formula. The FY ’12 allocation of $401.2 million is $18.7 million less than that of FY ’11 and $57.4 million, or 12.5 percent, less than FY ’10.  For the second straight year, the Legislature chose not to provide line-item allocations within the Activities Budget, leaving it in the hands of Superintendent Janet Barresi and the Board of Education to manage the shortfall. Read the rest of this entry »

State Finance Director Preston Doerflinger yesterday announced that June General Revenue (GR) collections came in $78.1 million, or 15.7 percent, above last year and $66.2 million, or 13.0 percent, above the official certified estimate. The June collections brought to an end the 2011 fiscal year and confirmed the increasingly solid recovery of Oklahoma’s tax collections that has been apparent over the course of the year. As can be seen from the first chart, the final quarter of FY ’11 marked the second quarter in a row where revenues exceeded the prior year by over 12 percent and the fifth straight quarter of year-over-year quarterly revenue growth.

For the full year, General Revenue increased by $487.1 million, or 10.5 percent, from the depths of FY ’10. However, as we can see, revenue collections remain substantially below pre-downturn levels. This year’s GR came in 14.2 percent below FY ’08 and remains considerably below collections of five years ago, FY ’06. Read the rest of this entry »

What’s up this week at Oklahoma Policy Institute? The Weekly Wonk is dedicated to this week’s events, publications, and blog posts.

This week at OK Policy, we presented interactive charts tracking state agencies’ share of the budget over time.  A series of visualizations show that while revenues have fallen over the past decade and the overall budget pie has shrunk, the distribution of that pie among agencies has remained relatively unchanged (with a couple notable exceptions). Read the rest of this entry »

The Oklahoma Department of Human Services this week approved changes to the state’s child care subsidy program that  will increase hardships for struggling low-income working families, threaten access to quality child care, and harm child care providers who serve low-income children. [UPDATE: In late July, the Commission decided to defer a vote on these changes until November]

DHS’ actions were precipitated by budget shortfalls for the upcoming year exceeding $30 million. The Legislature reduced state appropriations to DHS  for FY ’12 by a modest $6.0 million, or 1.1 percent, compared to FY ’11. However, the agency also faces the loss of one-time funding in this year’s budget, expected increases in program utilization, and higher employee benefit costs. To balance its budget, DHS proposed a series of  measures, which included voluntary buyouts of 231 positions, mostly within its field operations division for children and family services, and cuts in contracts for various social services. Read the rest of this entry »