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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 legislative leaders said they are open to a special legislative session to act on restoring tort reforms that were struck down by the state Supreme Court. Governor Fallin said a measure to preserve Insure Oklahoma, which will lose federal funding at the end of this year without changes, is “a remote possibility” in the special session. Former Secretary of State Glenn Coffee has been named the new general counsel for the State Chamber of Oklahoma. Nationwide maps compiled by researchers using Census data show Oklahoma counties rank poorly on many measures of prosperity and inequality.
David Blatt’s Journal Record column discusses how the taboo on questioning tax breaks for the energy industry in Oklahoma is finally changing. Kaiser Foundation Executive Director Ken Levit wrote in NewsOK that the drilling incentive serves no effective purpose. The OK Policy Blog discusses why the latest state revenue report should leave us worried.
The deaths of a two Guatemalan families with young children has started a discussion in Oklahoma City about reaching out to the area’s skyrocketing Hispanic population during severe weather. Nearly one in five juveniles surveyed in Oklahoma juvenile-detention facilities reported some form of sexual abuse while in custody, according to a recent report from the U.S. Department of Justice. Oklahoma City is planning to build a Major League Soccer stadium. Enid is facing a severe housing shortage as home construction has not kept up with a population boom.
The Number of the Day is the amount FY 2013 state general revenue came in below the projection developed in February. In today’s Policy Note, an animated video by the Henry J. Kaiser Family Foundation helps explain the health insurance changes coming next year under the Affordable Care Act.
In The News
Momentum grows for special legislative session
Momentum for a special legislative session to act on restoring comprehensive lawsuit changes that were struck down last month increased Wednesday, with the leader of the state Senate saying “the sooner the better” and the leader of the House backing whatever the governor decides. Gov. Mary Fallin, after speaking to the National Lieutenant Governors Association annual meeting in downtown Oklahoma City, said she still is looking at the option of calling a special session. The cost of a special session is estimated by legislative aides at nearly $30,000 a day or $150,000 a week. Fallin said a measure to preserve Insure Oklahoma, which will lose federal funding at the end of this year without changes, is “a remote possibility” in the special session.
Glenn Coffee picked as general counsel for State Chamber of Oklahoma
Former Secretary of State Glenn Coffee has been named the new general counsel for the State Chamber of Oklahoma. The chamber said Wednesday that Coffee’s legal and legislative background make him a good fit for the position. As general counsel, he will provide legal advice for the chamber and serve as a member of its board of directors. The group lobbies for pro-business reforms and initiatives throughout the state.
Map of the Week: Inequality in Oklahoma
The Atlantic Cities recently highlighted research by Calvin Metcalf, Kyle Box and Laura Evans, who used the Census Bureau’s latest five-year American Community Survey to create maps that illustrate “how where we live influences our dramatically varied experiences of America.” The Atlantic Cities published five maps—of counties’ median income, population living below the poverty line, income inequality, reliance on food stamps, and population over 25 without a high school diploma—to point out “deep and lingering differences between the American North and South” and to also emphasize “communities most in need of investment.” Oklahoma, on all of these maps, ranks on the wrong end.
Read more from This Land Press.
Prosperity Policy: Bad breaks
In Oklahoma, raising questions about the tax breaks enjoyed by the energy industry has long been a virtual taboo. But this is finally changing. In the early 1990s, the state lowered the tax rate on horizontal and deep wells to encourage these drilling techniques at a time when they were new, risky and experimental. Over the years, the energy industry has succeeded in preserving and expanding the tax breaks, especially for horizontally drilled wells. Since 2010, horizontal wells have been taxed at a rate of just 1 percent for a full 48 months after first production, even after the companies have recovered their drilling costs. As an increasing share of Oklahoma oil and gas production has shifted to horizontal wells, the cost of these tax breaks has exploded.
Read more from the Journal Record.
Foundation head: Drilling incentive serves no effective purpose
As the leader of a philanthropic organization built from the largesse of the oil and gas business in Oklahoma, I see every day the impact the energy industry has on this state. Whether it’s the early childhood or economic development work of the George Kaiser Family Foundation or the education reform efforts of the Charles and Lynn Schusterman Family Foundation, the energy business has fueled progress. However, the importance of Oklahoma’s energy sector doesn’t dismiss us from the responsibility to weigh the effectiveness of public policy.
Revenue report reveals rocky road
Last week, the Office of Management and Enterprise Services (OMES) announced monthly General Revenue (GR) collections for June, bringing Fiscal Year 2013 to a close. While Finance Secretary Preston Doerflinger’s candid assessment of plunging gross production revenues grabbed the headlines, this was just one of several worrisome features of the revenue report worthy of attention. OMES revealed that state tax credits for horizontal wells totaled $148 million in FY 2013. In addition, the state paid out $102.6 million in rebates and refunds for horizontal production in prior years that were deferred as part of an agreement made with the energy industry in 2010 to help address budget shortfalls during the recession..
Read more from the OK Policy Blog.
Spanish-speaking families struggle to understand storm warnings
Samuel Cifuentes, 33, made a home in northwest Oklahoma City with his wife, Florinda Santos, 34, and their son, Alex, 4. The brick home with a manicured yard near NW 26 and N Meridian Avenue sits in a growing enclave of people from Guatemala. Florinda Santos’ cousin, Yolanda Sarat-Santos, 34, and her three children joined the family about a year ago from Arizona, after a divorce. She worked long hours as a maid to support her children Lesly, 7; Christopher, 4; and Brandon, 8 — as well as family back in Guatemala. The seven relatives took cover in a storm drain near their home May 31, thinking it was the safest place. None of them survived the rushing waters. Cifuentes’ cousin, Octavio Aguilar, wonders if a better warning system for Spanish speakers could have saved their lives. That question has started a citywide discussion about reaching out to the area’s skyrocketing Hispanic population during severe weather.
Detained youth sexual abuse rate high in Okla.
Nearly one in five juveniles surveyed in Oklahoma juvenile-detention facilities reported some form of sexual abuse while in custody, according to a recent report from the U.S. Department of Justice. The report, which surveyed more than 8,000 youths in 326 facilities across the country in 2012, placed Oklahoma fourth for highest rate of victimization, at 18.4 percent, nearly double the national average of 9.5 percent. The survey covered nearly half of the estimated 18,000 youths in detention facilities in the country. In Oklahoma, however, the sample size was much smaller, as the 46 youths surveyed represented only about 13 percent of the up to 356 state-run secure detention beds.
Read more from the Norman Transcript.
Major League Soccer stadium in the works for Oklahoma City
A Major League Soccer stadium is coming to Oklahoma City. A metro sports marketing company is partnering with local developer ADG Inc. to begin designing what will soon be the home to a MLS franchise. The same firm who designed the Chickasaw Bricktown Ballpark, now in its 15th year of operation, will also design the new soccer stadium. The vision to build an MLS stadium has been a three-year-long process. The plan is to design and build a 7,000 seat stadium with the ability to expand to seat 20,000.
Booming Enid needs at least 600 new homes within the next two years
Enid is growing. It’s population is on the rise thanks to the oil and gas industry, and its importance as an agricultural center. In fact, the city is expected to add 1,700 more jobs over the next two years. All good news, right? Except there’s really no place for new residents to live. Enid has been experiencing a housing shortage since 2008, when, as The Journal Record‘s Molly M. Fleming reports, more than 100 homes were built in Garfield County: Since then, the market has dropped to more than 90 in 2009 to approximately 50 homes in 2011 and a mere 30 homes in 2012.
Quote of the Day
The same activity is taxed at roughly 11.5 percent in North Dakota. Guess what? They’re drilling like mad in North Dakota!
-Ken Levit, executive director of the George Kaiser Family Foundation, on why energy companies don’t need a tax break that drops the tax rate on horizontal wells to 1 percent in Oklahoma (Source: http://bit.ly/15KB1Sb)
Number of the Day
$109 million
The amount actual FY 13 revenue was below the projection developed in February.
Source: Oklahoma Policy Institute
See previous Numbers of the Day here.
Policy Note
The YouToons Get Ready for Obamacare: Health Insurance Changes Coming Your Way Under the Affordable Care Act
2014 is coming–are you ready for Obamacare? Join the YouToons as they walk through the basic changes in the way Americans will get health coverage and what it will cost starting in 2014, when major parts of the Affordable Care Act, also known as “Obamacare,” go into effect. Written and produced by the Kaiser Family Foundation. Narrated by Charlie Gibson, former anchor of ABC’s World News with Charlie Gibson and a member of the Foundation’s Board of Trustees. Creative production and animation by Free Range Studios.
Watch the video from the Henry J. Kaiser Family Foundation.
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