In The Know is a daily synopsis of Oklahoma policy-related news and blogs. Inclusion of a story does not necessarily mean endorsement by the Oklahoma Policy Institute. You can sign up here to receive In The Know by e-mail.

Today you should know that this year’s state budget agreement provides boosts for Medicaid, DHS, mental health, and the Legislature, but it leaves the Department of Corrections with flat funding and provides no pay increase for state workers. Education advocates had limited praise for the proposed small increase in education funding after years of big cuts. The okeducationtruths blog writes that even as overall state revenue recovers, funding for education has not. The budget agreement doesn’t address a possible hundreds of millions in lost revenue due to a court ruling on capital-gains tax deduction

Nearly $3.5 million is available to implement the Justice Reinvestment Act in the state budget agreement, but support for reform is faltering without any champions in the Legislature or Governor’s office. Former DHS Commissioner Steven Dow was among the first appointees to the new citizen advisory panels being set up to replace the Commission. Proposed legislation to overhaul state pension plans into one will not be taken up this session. OK Policy discussed why a last-minute push to overhaul pensions without time for public debate would be reckless.

KFOR examined the increase of suburban poverty in Oklahoma, much of which is caused by going bankrupt due to medical problems. The number of Oklahomans on federal disability programs has grown to nearly 8 percent of the working-age population. CBS News reported on how Oklahoma offers a universal pre-K model for the nation.

The Number of the Day is the percentage of households in communities of color in Oklahoma who don’t have access to a vehicle. In today’s Policy Note, the Center on Budget and Policy Priorities shares five strategies to smooth out the ups and downs of state tax dollars.

continue reading In The Know: Oklahoma’s budget agreement has winners and losers

The Weekly Wonk is a summary of Oklahoma Policy Institute’s events, publications, blog posts, and coverage.  Numbers of the Day and Policy Notes are from our daily news briefing, In The Know.  Click here to subscribe to In The Know.

OK Policy released a statement that the income tax cut ignores economic reality, and the only responsible path forward is to take real action to rein in unnecessary tax breaks. Our Executive Director, David Blatt’s Journal Record column discussed why the idea that tax cuts pay for themselves is still widely and roundly discredited. David was also quoted in The Ada News article covering an Education Forum focused on school finance and in the Muskogee Phoenix discussing the results of poll showing that Oklahoma voters opposed a tax cut when it affects core services. The Journal Record’s People on the Move highlighted OK Policy’s new board members John Feaver and Ann-Clore Duncan. OK Policy was also mentioned in an article by the Oklahoman Editorial board discussing the income tax debate.

On our blog we wrote that an overhaul of the state pension system unveiled at the last minute without careful vetting by legislators and the public is unlikely to yield good policy. We also noted that, Oklahoma could face an unexpected budget hole of more than $400 million due to a court case challenging Oklahoma’s treatment of capital gains and highlighted a new poll we commissioned showing that most Oklahoma voters oppose a proposed tax cut after learning what it would do. Lastly, we responded to legislators‘ criticism of a recent lecture on racial disparities in access to opportunity given by our policy analyst Kate Richey.

continue reading Weekly Wonk May 5, 2013

In The Know is a daily synopsis of Oklahoma policy-related news and blogs. Inclusion of a story does not necessarily mean endorsement by the Oklahoma Policy Institute. You can sign up here to receive In The Know by e-mail.

Today you should know that lawmakers reached a deal on the state budget, which includes an increase for education, but not enough of an increase to offset several years of budget cuts and growth in student enrollment.  State and school leaders approved of the increase, but reiterated their calls for full funding of common education.  OK Policy previously published a fact sheet on critical funding shortfalls, showing Oklahoma with the deepest cuts to funding for local schools of any state in the country over the last five years.

The budget deal does not include a pay raise for state workers, who haven’t seen a wage increase since 2006.  The OK Policy Blog responded to legislators‘ criticism of a recent lecture on racial disparities in access to opportunity given by one of our policy analysts.  Health officials are warning about the Hantavirus, a rare and deadly virus that has shown up in Oklahoma in recent weeks.

The Number of the Day is the number of Oklahomans who walk or use public transit to get to work.  In today’s Policy Note, Pew Charitable Trusts reports on how the mortgage interest deduction, widely viewed as a broad tax benefit for the middle-class, benefits the residents of some states far more than others.

continue reading In The Know: Governor, GOP leadership reach budget deal

Last week, State Representative Jason Nelson (R- Oklahoma City) expressed concern about a presentation given by Kate Richey, a policy analyst for Oklahoma Policy Institute, as part of a lecture series sponsored by the Oklahoma Department of Human Series. The apparent cause of Rep. Nelson’s concern, and that of at least one legislator who urged DHS to cancel the lecture, was that the talk addressed issues of racial disparities in Oklahoma. These issues, while uncomfortable to some, are a valid subject of  public debate and should be an urgent matter of legislative attention.

Oklahoma Policy Institute is committed to evidence-based analysis of state policy issues, and we will continue to promote policies that lead to expanded opportunity for all Oklahomans.  We appreciate DHS’ willingness to use its lecture series to raise awareness and foster debate on important policy issues, and applaud their decision to reject appeals made by members of the legislature to cancel the lecture.

continue reading Opportunity gap is a central, not ‘marginal’, concern for Oklahoma

In The Know is a daily synopsis of Oklahoma policy-related news and blogs. Inclusion of a story does not necessarily mean endorsement by the Oklahoma Policy Institute. You can sign up here to receive In The Know by e-mail.

Today you should know that the Oklahoma House gave final approval to a bill that would cut the state’s top income tax rate to 5 percent in 2015 and provide $120 million for improvements to the state Capitol. OK Policy released a statement that the income tax cut ignores economic reality, and the only responsible path forward is to take real action to reign in unnecessary tax breaks. David Blatt’s Journal Record column discusses why the idea that tax cuts pay for themselves is still widely and roundly discredited.

Norman Superintendent Joe Siano connected the dots on the disturbing budget picture facing Oklahoma schools. Oklahoma students taking state tests Tuesday were again stopped cold after the testing company’s computer servers crashed for a second consecutive day. The Tulsa World writes that two developments may advance the Medicaid debate: a Legislative initiative for an Oklahoma plan to use the federal expansion funds, and a poll showing a majority of Oklahomans want the state to accept the federal dollars.

PR Watch reports that the American Legislative Exchange Council has been sending public officials temporary files to dodge public record requests about its meeting this week in Oklahoma City. NewsOK reports that the Oklahoma Department of Corrections underreported the amount held in revolving funds for two years. StateImpact Oklahoma writes that funding to complete the American Indian Museum has become a proxy in a fight over water rights between Oklahoma City and rural areas of the state. The New York Times reports that the rapid expansion of hydraulic fracturing to retrieve once-inaccessible reservoirs of oil and gas could put pressure on already-stressed water resources in Texas, Oklahoma, and Colorado.

The Number of the Day is the growth in the number of women-owned firms in Oklahoma over the last 15 years. In today’s Policy Note, a new study on Medicaid in Oregon shows that extending the program dramatically improves financial security for low-income families.

continue reading In The Know: House gives final approval to income tax cut

Oklahoma Policy Institute released the following statement on the Legislature’s passage of the tax cut and Capitol renovation bill, HB 2032:

The Legislature’s approval of another tax cut ignores economic reality. Because they were under pressure to restore funding to Oklahoma’s schools, mental health system, child welfare system, and other core services that have endured steep cuts in recent years, income tax cuts were delayed until 2015. Yet we have seen no evidence that Oklahoma will be able to afford a tax cut in that year either. Indeed, we are already seeing signs of faltering revenue collections, with revenue falling below last year.

Now that cuts are scheduled, the only responsible path forward is to pursue real tax reform that goes beyond the top income tax rate. To fund education and ensure a prosperous future for Oklahoma, we need real action to reign in unnecessary tax credits and exemptions that cost us hundreds of millions of dollars every year.

If we do not pursue real tax reform, and instead continue to ignore the needs of Oklahoma students, retirees, uninsured, and more, we are putting our economic future severely at risk.

In The Know is a daily synopsis of Oklahoma policy-related news and blogs. Inclusion of a story does not necessarily mean endorsement by the Oklahoma Policy Institute. You can sign up here to receive In The Know by e-mail.

Today you should know that a group of Republican lawmakers have developed a plan for accepting federal funds to provide health coverage to low-income Oklahomans. A Senate committee approved a measure to limit Oklahoma’s bond debt that would still allow enough borrowing power to repair a crumbling Capitol building and take on other public projects. OK Policy previously explained why running government like a business means taking on debt and why measures to limit Oklahoma’s debt could actually make it more expensive.

A new poll commissioned by OK Policy shows that most Oklahoma voters oppose a proposed tax cut after learning what it would do. You can see the full poll results here. Fort Gibson Republican Rep. Arthur Hulbert declared that he will vote against the tax cut, citing his pledge to not cut taxes at the expense of education. Oklahoma could face an unexpected budget hole of more than $400 million due to a court case challenging Oklahoma’s treatment of capital gains. Gov. Sam Brownback has proposed taking $9.5 million from an endowment fund for early-childhood programs to help cover a budget hole created by tax cuts. 

The final House vote on the tax cut will likely happen today. You can contact your Representative to speak out using this form.

continue reading In The Know: Legislators propose plan to accept federal funds for insuring low-income Oklahomans

As legislators consider a final vote on a tax cut that would ultimately reduce state revenues by over $230 million, the state could be facing unexpected liabilities in the hundreds of millions of dollars due to a court case challenging Oklahoma’s treatment of capital gains.

A memo circulated earlier this month by Senator Mike Mazzei sets out the potential impact of a ruling in January 2013 by the Oklahoma Court of Criminal Appeals.  An out-of-state company, CDR Systems Corporations, challenged an Oklahoma law, enacted in 2005, that exempts all capital gains from the sale of Oklahoma-based property or stocks from state individual and corporate income tax. The Court found that the law violated the Commerce Clause of the U.S. Constitution by giving preferential treatment to Oklahoma-based companies.

continue reading Court’s tax ruling could have seismic impact on state budget

The final House vote on the tax cut bill will likely happen tomorrow. Click here to contact lawmakers and speak out.

A new poll commissioned by OK Policy shows that a strong majority of Oklahomans oppose a plan to cut the state’s top personal income tax rate when they are informed how it would affect taxpayers. A majority of voters was also against cutting funding to education, public safety, and health care in order to pass on the savings as a tax cut.

The national polling firm Global Strategy Group interviewed 601 registered voters in Oklahoma from April 25 to 28, after a leadership deal for a personal income tax cut had been announced. The survey’s margin of error was +/- 4.0 percent. The complete poll results are available here.

continue reading Poll shows Oklahomans oppose tax cut plan after hearing the facts

In The Know is a daily synopsis of Oklahoma policy-related news and blogs. Inclusion of a story does not necessarily mean endorsement by the Oklahoma Policy Institute. You can sign up here to receive In The Know by e-mail.

Today you should know that Oklahoma could be on the hook for as much as $400 million because of a court ruling earlier this year that said a capital-gains tax deduction for Oklahoma-based companies is unconstitutional. Gov. Mary Fallin and Oklahoma Treasurer Ken Miller are working behind the scenes to consolidate the administrations of the state’s largest pension systems, and some are questioning why the proposal is being drafted in secret. The OK Policy Blog writes that an overhaul of the state pension system unveiled at the last minute without careful vetting by legislators and the public is unlikely to yield good policy.

A report by the National Institute for Early Education Research finds that state funding for pre-K programs fell by more than a half a billion dollars in 2011-2012, and Oklahoma’s per pupil funding for pre-K still remains significantly below 2010 levels. See a fact sheet from the report on Oklahoma pre-K here. School testing came to a halt statewide early Monday because the CTB/McGraw-Hill testing company servers crashed. The okeducationtruths blog contrasts the testing corporation’s failures with the State Department of Education’s insistence that school districts proceed with data collection deadlines.

The Tulsa World reports that the Oklahoma State Board of Dentistry took disciplinary action against 68 licensed dentists in the state during the past 13 years. Gov. Fallin plans to begin work on a push for a statewide vote on an anti-smoking initiative once the Legislative session ends. The Tulsa World pointed out that while state leaders are hatching a tax-cut plan, the families of more than 7,000 Oklahomans with developmental disabilities are straining to take care of their loved ones while stuck on a waiting list for state services. Click here to contact lawmakers and speak out on the tax cut plan.

The Number of the Day is Oklahoma’s rank nationally for the percentage of seniors living with a disability. In today’s Policy Note, Mother Jones maps out which states have cut treatment for the mentally ill the most in recent years.

continue reading In The Know: Court ruling could cost Oklahoma $400 million