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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 Sen. Tom Coburn said he prefers raising the tax rates on the wealthiest taxpayers to a proposal that would cap deductions for those making over $250,000 per year. The Obama administration said 1.3 million Oklahoma families would see their taxes increase if no action is taken to avoid the fiscal cliff.
Senate President Pro Tem Brian Bingman said significantly changing or replacing Oklahoma’s workers’ comp system was more important that tax reform. NewsOK writes that better pay for Oklahoma troopers and prison guards should be a legislative priority in 2013. The Tulsa World discussed the state’s continuing struggles with rising incarceration.
On the OK Policy Blog, we explain why rising inequality is bad for business. David Blatt’s Journal Record column discussed more reasons why we should take inequality more seriously. Kansas is facing a drop of $705 million in revenue brought on by the tax cuts. An OSU economist estimates 26,600 jobs will be added in Oklahoma in 2013.
A-F grades for Oklahoma school districts throughout the state were released by the state Education Department. The private vocational school ATI abruptly closed its two Oklahoma City campuses last week, after its programs in Texas had their certification revoked for substantial misreporting of graduate employment rates. Federal geologists have determined that a damaging Oklahoma earthquake was induced by disposal wells used in drilling.
The Number of the Day is the number of occupational fatalities in Oklahoma in 2011. In today’s Policy Note, Matthew Yglesias explains why raising the Medicare eligibility age would cost patients about twice as much as it would save the government.
In The News
Coburn: ‘I would rather see the tax rates go up’ than cap deductions
Sen. Tom Coburn (R-Okla.) said Wednesday that he prefers simply raising the tax rates on the wealthiest taxpayers to a Republican proposal that would cap deductions for those making over $250,000 per year. “Personally, I know we have to raise revenue; I don’t really care which way we do it,” Coburn said during an appearance on MSNBC. “Actually, I would rather see the rates go up than do it the other way, because it gives us greater chance to reform the tax code and broaden the base in the future.” Many Republicans favor the plan to limit deductions because they believe it would not violate the Grover Norquist-backed anti-tax pledge they signed during their campaigns. But President Obama warned Wednesday that such a plan could only feasibly raise $300 billion to $400 billion without affecting charities and nonprofits that rely on donations from wealthy taxpayers.
Without a cliff deal, taxes would rise for 1.3 million Oklahomans
Oklahoma families would lose valuable tax credits, along with having their income tax rates go up, if no agreement is reached to extend the current tax rates, according to a White House report. An estimated 447,000 Oklahoma families will lose access to the Child Tax Credit and about 90,000 families in the state will no longer be able to claim the American Opportunity Tax Credit that helps pay for college, according to the White House report. The Obama administration reported last week that 1.3 million Oklahoma families would see their taxes increase if no action is taken before the new year.
Changes in Oklahoma’s workers’ comp system to be key legislative issue
Republican legislative leaders said Wednesday they support efforts to significantly change or replace Oklahoma’s workers’ compensation court system while Democratic leaders questioned what went wrong with legislation passed last year that was heralded to drive down costs. Senate President Pro Tem Brian Bingman, R-Sapulpa, said Oklahoma and Tennessee are the only states with a judicial system handling cases of workers hurt on the job. Workers’ compensation rates in Arkansas are about half the rates in Oklahoma, he said. “We are not competitive,” Bingman said during a legislative panel discussion sponsored by The State Chamber. “This is more important than tax reform.”
NewsOK: Pay for Oklahoma troopers, prison guards should be legislative priority in 2013
During the 2012 session, legislators found $5 million in supplemental funding for an academy to train new Oklahoma Highway Patrol troopers. The OHP had gone three years without conducting one of its academies, which should be held annually to help keep up with retirements and attrition. This wasn’t the first such interruption for the OHP. Academies were canceled in 2003 or 2004 too, due to funding cuts. Now the agency has 776 troopers, well short of the 925 it is authorized to carry on the rolls. These men and women are spread thin, and they do it for less money than many of their peers.
Tulsa World: DOC continues to struggle for space
Oklahoma takes one step forward toward reducing its high per-capita incarceration rate and two steps back. Now, the prison system has run out of space for new female inmates. How did this happen, after all the publicity and work toward reducing the female incarceration rate, which is the highest per-capita in the nation? In the past few years more female offenders have been diverted from prison through such efforts as the successful Women in Recovery program. But many women aren’t eligible for that program or live in areas where alternatives to incarceration are limited. Also, with Oklahoma’s 85 percent rule, inmates committing certain serious offenses must remain in prison longer.
Read more from the Tulsa World.
Inequality is bad for business
This afternoon, the State Chamber of Oklahoma is hosting a public affairs forum with a keynote speech titled “Defending the Dream: Why Income Inequality Doesn’t Threaten Opportunity.” The speech will be delivered by David Azerrad from the Heritage Foundation, who co-authored a report which claims that we shouldn’t care about income inequality and that those who do are just envious of the rich. In the real world, a large body of research shows that rising inequality is dangerous for all of us.
Read more from the OK Policy Blog.
David Blatt: Inequality matters
Oklahoma’s economy has grown faster than most in recent years, but new research finds that almost all the income gains are going to the wealthiest households. That inequality is growing at a troubling rate. During the most recent economic expansion from 1998 to 2007, the incomes of the richest fifth of Oklahoma households grew by 7.7 percent. Incomes for the middle fifth remained stagnant. Incomes for the poorest fifth fell by 7.5 percent. Inequality matters for many reasons.
Read more from The Journal Record.
Kansas facing $705 million revenue drop due to tax cuts
Acknowledging that the state is facing a “hard dip” in revenues, Kansas Gov. Sam Brownback said Tuesday that the Legislature should consider ways to pay for massive income tax cuts that he signed into law earlier this year. Brownback noted that he originally proposed paying for the income tax cuts by keeping part of a penny sales tax that’s supposed to expire next July 1 as well as eliminating many tax deductions and credits, including deductions for interest on home mortgages and for charitable contributions. However, those proposals never got out of the Legislature. Brownback said Tuesday that lawmakers should take another look, especially with the state now facing a drop of $705 million in revenue brought on by the tax cuts.
Read more from the Kansas City Star.
Oklahoma economy expected to continue growth in 2012, OSU economist forecasts
The Oklahoma economy is expected to see continued growth in 2013 as it bounces back from the effects of the national recession, an Oklahoma State University economist said Wednesday in his annual forecast. Dan Rickman, Regents Professor of Economics at OSU, estimates 26,600 jobs will be added in Oklahoma in 2013. The strongest growth is expected in professional and business services, with 5,000 jobs, and construction, which could add 4,000 jobs. Other sectors with robust employment growth are state and local government; leisure and hospitality; and wholesale trade. Rickman said state employment growth will slow to 1.7 percent next year, down from 2.5 percent this year.
A-F grades given to school districts
Letter grades for more than 500 school districts throughout the state were released Wednesday evening by the state Education Department as part of a new evaluation system that assigns A-F grades to Oklahoma schools and districts. Education leaders expressed similar concerns about the overall district grades this week as they did earlier this fall when grades were assigned to individual schools. “When you try to boil everything down to one letter grade, it misses so many of the nuances, both strengthens and weaknesses,” Tulsa Union Superintendent Kathy Burden said. Tulsa Union received a B, a grade Burden said she is “not dissatisfied with.” While data is helpful to educators and parents, overarching information like a letter grade doesn’t give parents the information most are looking for: how their kids are doing in school.
Private vocational school in Oklahoma City abruptly shuts down its two campuses
A private vocational school abruptly closed its two Oklahoma City campuses last week, prompting some of its 80 students to transfer to Platt College of Moore and leaving others bewildered about what comes next. ATI Career Training Center has closed its campuses at Shepherd Mall and near Crossroads Mall, Art Rodriguez, vice president of compliance for the company, confirmed Wednesday. ATI is regulated in this state by the Oklahoma Board of Private Vocational Schools. Nora House, director for that board, said it is her understanding that ATI is closing most of its campuses in Oklahoma and four other states. The Texas Workforce Commission revoked certificates of approval for ATI to operate 22 programs at its Texas career schools in August 2011 following the discovery of substantial misreporting of graduate employment rates in those programs.
Federal Geologists: Oklahoma earthquake ‘induced’ by disposal wells used in drilling
Recent earthquakes in Oklahoma, Colorado and New Mexico are tied to wells drilling companies use to dispose of wastewater, federal geologists will argue in a report expected this week. The Associated Press reports: “A USGS team based in Menlo Park, Calif., found that the quake in Colorado and a damaging 5.6-magnitude quake in Oklahoma both were induced by disposal of fracking waste underground.” U.S. Geological Survey scientist Justin Rubinstein, co-author of the report — which will be released at the fall meeting of the American Geophysical Union, currently underway in San Francisco — says the data should spur a discussion of disposal wells.
Read more from StateImpact Oklahoma.
Quote of the Day
Personally, I know we have to raise revenue; I don’t really care which way we do it. Actually, I would rather see the rates go up than do it the other way, because it gives us greater chance to reform the tax code and broaden the base in the future.
–Senator Tom Coburn, saying that he prefers simply raising the tax rates on the wealthiest taxpayers to a Republican proposal that would cap deductions for those making over $250,000 per year
Number of the Day
77
The number of occupational fatalities in Oklahoma in 2011
Source: Kaiser Family Foundation
See previous Numbers of the Day here.
Policy Note
Raising the Medicare eligibility age would cost patients about twice as much as it would save the government
When economists and policymakers worry about the long-term fiscal crisis, what they’re mostly worried about is Medicare. That’s why a persistent idea during this fiscal cliff season is raising the Medicare eligibility age from 65 to 67. As far as big picture entitlement reform goes, in other words, it’s relatively simple, straightforward, and easy to accomplish. Unfortunately it’s also a terrible idea that cloaks a staggering giveaway to hospitals, doctors, and other health care providers.
Read more from Matthew Yglesias.
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