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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 a Senate committee gutted Gov. Mary Fallin’s personal income tax-cutting proposal and replaced it with a new plan. OK Policy released a statement that the Senate has rightfully recognized that more income tax cuts this year are the wrong priority, but it is irresponsible for them to propose a tax cut for 2015 without knowing what the budget will look like that year. A special DHS committee made 37 recommendations to help prevent child deaths. You can read the full report here.
In the Oklahoma Gazette, OK Policy analyst Gene Perry made the case against parent triggers. Jenks Middle School is receiving a flurry of opt-out forms from parents who don’t want their children to take so-called “field tests” that don’t count in the school’s state grade. A guest post on the OK Policy Blog discusses America’s struggle with nursing care staffing shortages.
With the departure of Chesapeake CEO Aubrey McClendon, many who benefit from the company’s philanthropic efforts are wondering what’s next. As the country moves toward more fuel-efficient cars and vehicles powered by alternative fuels, the trend eventually could require changes in the country’s tax policies to fund road construction and maintenance.
The Number of the Day is the percentage of Oklahomans who do not have a bank account at a financial institution. In today’s Policy Note, a Citizens for Tax Justice report shows that when you take into account all the taxes Americans pay, our tax system is just barely progressive.
In The News
Senate unveils new personal income tax cut plan
A Senate committee gutted Gov. Mary Fallin’s personal income tax-cutting proposal Thursday and replaced it with a new plan. Sen. Mike Mazzei, R-Tulsa, chairman of the Senate Finance Committee, inserted the new language in House Bill 2032 three days after a House budget subcommittee voted down his measure to reduce the personal income tax. Proponents of a personal income tax cut said the apparent retaliatory action could cause efforts to fizzle just as they did a year ago when lawmakers, after sorting through five income tax-cutting measures, couldn’t agree on two compromise bills the last days of the session. Legislative leaders, however, said they are determined to deliver an income tax cut before the session is scheduled to end in late May.
STATEMENT: Senate tax cut proposal makes tomorrow’s decision today
By deferring a tax cut until 2015, the Senate has rightfully recognized that more income tax cuts this year are the wrong priority. Oklahoma has pressing needs for investments that should come before tax cuts, such as funding education reforms, paying for court-ordered child welfare reforms, fixing the crumbling state Capitol building, providing cost-of-living adjustments for state workers, and easing the pressure on overcrowded and understaffed state prisons. Yet by pushing a $169 million tax cut for 2015, we would bind our hands before we know what Oklahoma’s revenue or budget needs will be. Given an uncertain economy and the threat of federal budget cuts, we should proceed with caution. If we set aside a tax cut for now, lawmakers would still be free to approve one next year or to prioritize other investments, depending on the state’s situation. It is irresponsible to make tomorrow’s decision today.
Read more from Oklahoma Policy Institute.
DHS committee makes 37 recommendations to prevent Oklahoma child deaths
A special committee that reviewed what role DHS had in child deaths since 2010 identified problems at the agency but also concluded there appeared to be “much blame to go around.” In a report released Thursday, the committee made 37 recommendations that could help prevent child deaths. At the top of the list was a call for better cooperation between child welfare workers at the Department of Human Services and judges, public defenders, district attorneys, educators, health officials, law enforcement and others.
Read the full report here.
Don’t pull that trigger
In the 2012 film Won’t Back Down, a single mother stands up to a villainous teachers’ union and school administrators to take over her child’s school. The film was produced by Walden Media, a company belonging to Oklahoman owner Philip Anschutz. It seeks to dramatize “parent trigger” laws being pushed across the country by organizations like the Bill & Melinda Gates Foundation and the American Legislative Exchange Council. Sen. David Holt, who sponsored such legislation for Oklahoma, said he was partly inspired by Won’t Back Down. But whatever the film’s merits as entertainment, its rosy portrait of parent triggers mask major problems with the idea.
Read more from the Oklahoma Gazette.
Jenks parents opt out students from ‘field tests’
Jenks Middle School is receiving a flurry of opt-out forms from parents who don’t want their children to take so-called “field tests” that aren’t scored and don’t count in the school’s state grade. “Our kids are being used as unpaid subjects by CTW/McGraw-Hill (a testing vendor) without our consent or permission,” said PTA President Deedra Barnes. Field tests are used by testing companies as a way to evaluate questions for future use. Over the next month, the middle school will be administering 8,000 individual Oklahoma core curriculum tests and end-of-instruction tests. Of those, about 2,400 or 30 percent of them are what are called field tests, Jenks Middle School Principal Rob Miller said.
Read more from the Tulsa World.
Critical nursing care staffing shortages must be addressed (Guest Post: Fred Benjamin)
Skilled nursing care providers have critical staffing needs. If you are in the business of caring for our nations’ elderly, it is a daily struggle to find enough dedicated caregivers. We are different from other employers in many ways, responsible for the lives of 1.5 million frail and elderly citizens nationwide. And this is the fastest-growing segment of our population. The general causes of the staffing shortage include chronic underfunding of Medicare and Medicaid, a regulatory system that focuses on fines and penalties, dramatically increased competition for caregivers, annualized turnover rates of nearly 100 percent, and an aging workforce.
Read more from the OK Policy Blog.
Non-profits and retailers wonder about their relationship with Chesapeake post-McClendon
Some could argue that in addition to being in the energy business, Chesapeake Energy is in the Oklahoma City business. From shopping centers to the support of nonprofits and the arts, many rely on Chesapeake dollars. With the departure of Chesapeake co-founder and CEO Aubrey McClendon, many who benefit from the company’s philanthropic efforts wonder what’s next. The nonprofit sector was put on notice by the company in January with a U.S. Securities and Exchange Commission filing that stated Chesapeake planned to significantly curtail its charitable giving. The company did not disclose how much less it would be giving to charitable causes. Chesapeake’s 2011 annual report showed more than $31 million in donations that year to charitable causes and initiatives.
Read more from the Oklahoma Gazette.
New vehicles could lead to tax policy changes
As the country moves toward more fuel-efficient cars and vehicles powered by alternative fuels, the trend eventually could require changes in the country’s tax policies, industry observers say. The Obama Administration last summer unveiled strict Corporate Average Fuel Economy, or CAFE standards, which would require each auto manufacturer’s fleet of new vehicles to average 54.5 miles per gallon in 2025, up from 28.6 miles per gallon in 2011. At the same time, industry and public policy leaders are pushing the development of natural gas and electric vehicles. Most of the efforts are led by a desire to reduce dependence on foreign oil or to cut greenhouse emissions. A side effect is that the effort could lead to reduced gasoline tax collections, which are mostly assessed per gallon and are used primarily to fund road and bridge projects throughout the country.
Quote of the Day
“I think they see this as an opportunity to say enough’s enough. I think they’re saying ‘We’re tired of our students being tested and tested, especially these field tests that don’t have any value for our kids and just put more stress on them.'”
–Jenks Middle School Principal Rob Miller, on the large number of parents opting out from their children taking “field tests”, which don’t count towards a student’s grade but are used to develop tests for future years
Number of the Day
10.9 percent
Percentage of Oklahomans who do not have a bank account at a financial institution
Source: FDIC via OK Policy Blog
See previous Numbers of the Day here.
Policy Note
Who pays taxes in American in 2013?
It is sometimes claimed that many low- and middle-income Americans don’t pay taxes while the richest Americans pay a hugely disproportionate share of taxes, especially after enactment of the “fiscal cliff” deal that allowed some taxes to go up. As the table to the right illustrates, America’s tax system is just barely progressive even after the fiscal cliff deal’s effects. Claims that the rich pay a disproportionate share of taxes often focus only on the federal personal income tax and ignore the other taxes that people pay, like federal payroll taxes, federal excise taxes, and state and local taxes. Many of these other taxes are regressive, meaning they take a larger share of income from poor and middle-income families than they take from the rich.
Read more from Citizens for Tax Justice.
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