In The Know: Oklahoma will deposit $3 million in Rainy Day Fund

In The KnowIn 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 will deposit nearly $3 million into the Rainy Day Fund, bringing its total amount to $535.2 million. Many state businesses are expected to pay less into Oklahoma’s unemployment insurance trust fund in 2014 after the fund balance recently topped $1 billion for the first time. While most state workers continue to go without raises, the Oklahoma State Regents last month gave a 5 percent increase to employees.

The number of Oklahoma children in state custody is soaring, which is frustrating efforts to reform the child welfare system. A new Oklahoma law is raising worries that it could discourage honest dialogue between physicians and patients about end-of-life care. David Blatt’s Journal Record column discussed some rays of hope for people who feel discouraged about current affairs in Oklahoman. The OK Policy Blog looked at the costs and benefits of recycling programs in Oklahoma cities.

The Oklahoma Department of Mines could lose about $1 million a year in federal funding for failing to properly enforce land reclamation regulations for coal mine operators. A report by the US Department of the Interior’s Inspector General found that Oklahoma coal-mining companies were not restoring lands after mining as required by Federal law, leaving large—and sometimes dangerous—holes that prevented landowners from using the land for livestock grazing or other purposes. Pro Publica investigated how Chesapeake and other oil companies are manipulating cost data to avoid paying royalties to landowners.

The Number of the Day is the projected increase in college graduates that Oklahoma needs to acheive by 2025 to keep its residents prepared for the jobs of the future. In today’s Policy Note, the Center on Budget and Policy Priorities looks at the state of Social Security for the highly successful program’s 78th birthday.

In The News

Oklahoma will deposit $3 million in Rainy Day Fund

For the third year in a row Oklahoma will be making a deposit to its savings account. Although original calculations indicated surplus funds would be unlikely at the end of the 2013 fiscal year, or June 30, the state will deposit nearly $3 million into the Rainy Day Fund, state finance officials said Wednesday. The $2.7 million deposit will raise the amount in the Rainy Day Fund to $535.2 million.

Read more from NewsOK.

Savings on the way for Oklahoma employers as unemployment trust fund tops $1 billion

Many state businesses are expected to pay less into Oklahoma’s unemployment insurance trust fund in 2014 after the fund balance recently topped $1 billion for the first time. The Oklahoma Employment Security Commission uses the fund to pay regular state unemployment benefits to qualified workers. The commission calculates individual employer contribution rates for the following year based on past total benefits payments and the trust fund balance. For 2014, the contributions of most Oklahoma employers will drop considerably due in part to the solvency of the unemployment insurance trust fund.

Read more from NewsOK.

Oklahoma State Regents give employees 5 percent raise

While state workers await the outcome of a compensation study to see if raises will be forthcoming, the Oklahoma State Regents last month quietly gave a 5 percent increase to employees. The raises were given to 268 employees at a cost of just over $1 million, said Amanda Paliotta, vice chancellor of finance. The regents’ budget is $988.5 million and included a $33.2 million increase for debt service and for institutions in fiscal year 2014, she said. She said the agency has had trouble retaining employees.

Read more from NewsOK.

Increase in number of Oklahoma children in DHS custody frustrates reform efforts

The number of Oklahoma children in state custody is soaring. That number has risen from about 8,000 four years ago to 10,428 today — frustrating Oklahoma Department of Human Services officials in their efforts to meet performance targets agreed upon as part of a settlement agreement to a federal class-action lawsuit. “We’re not where we want to be,” acknowledged Deborah Smith, DHS’s director of child welfare services.

Read more from NewsOK.

Prosperity Policy: Rays of hope

For all who frequently feel discouraged about current affairs in Oklahoma, an event organized last week by the Oklahoma Policy Institute offered a strong ray of hope. Fifty-two Oklahoma college students and recent graduates came together for three days for the first Summer Policy Institute at the University of Tulsa. They attended presentations and workshops on major policy issues from budget and taxes to poverty, education and economic development.

Read more from the Journal Record.

Taking out the trash

Trash is a surprisingly controversial topic. A major argument against recycling is that it reproduces the labor and equipment utilized in a waste management program. Every route will need at least two collection services, one for landfill disposal and one for recycling, which requires twice the trucks, twice the emissions, and twice the manpower. However, the extraction and processing of new materials requires as many or more resources. Therefore, study after study has shown that natural resources tend to be conserved with recycling programs.

Read more from the OK Policy Blog.

Controversial new state law interferes with decisions about palliative care

Is terminal illness to be treated aggressively, no matter the risk or chance of success? Should someone confronting the end of his or her life opt instead for comfort, seeking the quality of life that palliative care or hospice might offer? Physicians and patients have long agonized over such issues. Now a new state law set to take effect Nov. 1 has sparked debate between pro-life activists and health care providers.

Read more from the Oklahoma Gazette.

Oklahoma mine agency could lose federal funds

The Oklahoma Department of Mines could lose about $1 million a year in federal funding for allegedly failing to properly enforce land reclamation regulations for coal mine operators. The state agency contends it did not have any contact with federal investigators before a “surprise” report was issued last week by the U.S. Department of Interior’s inspector general to the director of the Office of Surface Mining Reclamation and Enforcement. A 2010 review identified Oklahoma as the primary surface mining state with problems regulating reclamation projects.

Read more from NewsOK.

Read the full report here.

Unfair Share: How oil and gas drillers avoid paying royalties

Don Feusner ran dairy cattle on his 370-acre slice of northern Pennsylvania until he could no longer turn a profit by farming. Then, at age 60, he sold all but a few Angus and aimed for a comfortable retirement on money from drilling his land for natural gas instead. Then one day in April, Feusner ripped open his royalty envelope to find that while his wells were still producing the same amount of gas, the gusher of cash had slowed. Chesapeake Energy, the company that drilled his wells, was withholding almost 90 percent of Feusner’s share of the income to cover unspecified “gathering” expenses and it wasn’t explaining why.

Read more from Pro Publica.

Quote of the Day

My fear is that physicians will be even more reluctant to be honest when curative treatment is futile. Needless suffering should be outlawed by our state leaders if they are intent on practicing medicine without a license.

-Annette Prince, director of the Oklahoma Palliative Care Resource Center, on a new Oklahoma law that seeks to ban doctors from denying aggressive medical treatments to elderly, disabled, or dying patients, even if the treatment could cause great suffering with little chance of success (Source: http://bit.ly/17rWnok)

Number of the Day

397,000

The projected increase in college graduates that Oklahoma needs to acheive by 2025 to keep its residents prepared for the jobs of the future

Source: CLASP

See previous Numbers of the Day here.

Policy Note

Happy 78th Birthday, Social Security!

Social Security marks its 78th birthday today. This highly successful program pays benefits to 57 million Americans. It’s the single most important source of income for its elderly beneficiaries, contributing on average two-thirds of income for recipients over age 65. For more than one-third of them, Social Security constitutes 90 percent or more of income (see graph). Reliance on Social Security is especially high among the oldest— those who can no longer work and may have outlived their savings — and elderly blacks and Hispanics. Without Social Security, nearly half of elderly Americans would live below the official poverty level; instead, fewer than 10 percent do.

Read more from the Center on Budget and Policy Priorities.

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ABOUT THE AUTHOR

Gene Perry worked for OK Policy from 2011 to 2019. He is a native Oklahoman and a citizen of the Cherokee Nation. He graduated from the University of Oklahoma with a B.A. in history and an M.A. in journalism.

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