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What’s up this week at Oklahoma Policy Institute? The Weekly Wonk shares our most recent publications and other resources to help you stay informed about Oklahoma. Numbers of the Day and Policy Notes are from our daily news briefing, In The Know. Click here to subscribe to In The Know.
This Week from OK Policy
Policy Matters: Does Oklahoma truly honor the value of labor?: Oklahoma’s state motto — “Labor omnia vincit,” or work conquers all — suggests a deep respect for hard work. Yet, a closer look makes it clear that many state policies, and the actions of some elected officials, don’t align with this ideal. This disconnect is especially harmful for our friends and neighbors working in low-wage jobs. [Shiloh Kantz / The Journal Record]
Shropshire’s sudden departure from DHS (Capitol Update): It was a surprise to see that Deborah Shropshire, M.D., has resigned as director of the Oklahoma Department of Human Services after less than two years in the office. She joined DHS in 2014 and was appointed director by Gov. Kevin Stitt in January 2023. [Steve Lewis / Capitol Update]
OK Policy in the News
Legislators discuss alternatives to incarceration for youth justice system: State Rep. Jason Lowe, D-Oklahoma City, held the study to examine the rehabilitative nature of the juvenile justice system and explore alternatives to incarceration. Jill Mencke, youth justice policy analyst at Oklahoma Policy Institute, talked to the committee about using diversion to empower youth and keep them out of prison. [The Journal Record]
Low voter turnout concerns as Oklahoma heads to polls, analyst cites hurdles: “We’re consistently ranked very, very low in relation to the rest of the country and even surrounding states,” said OK Policy’s Cole Allen. A limited early voting period, voter registration requirements and voting during the workday are some factors that contribute to low voter turnout in Oklahoma. [Fox 25]
Now that Oklahoma’s grocery tax is gone, how much will you save? It’s complicated.: Buying groceries just got a little cheaper in Oklahoma. The Oklahoma Policy Institute released calculations that break down the estimated savings based on annual income. [The Oklahoman]
- From OK Policy: Fact Check: Will Oklahoma families save $800 a year from eliminating the state portion of the grocery sales tax?
Weekly What’s That
The Earned Income Tax Credit (EITC) is a tax credit that subsidizes work for low-income families. The EITC is the nation’s largest cash or near cash assistance program after the Supplemental Nutritional Assistance Program (SNAP). Together with the Child Tax Credit, the EITC lifted 10.6 million people above the poverty line and made poverty less severe for 17.5 million others in 2018, according to the Center on Budget and Policy Priorities.
The amount of EITC depends on a family’s earnings and number of children; the maximum credit in 2022 was $6,604 for a family with two children. The federal EITC is refundable, which means the full amount can be claimed even if it exceeds a taxpayer’s tax liability. Refundability is critical to the success of the EITC because it allows the credit to still reward work and support families even if workers pay little or no income tax.
Oklahoma is one of 30 states (including DC) with a state EITC, set at 5 percent of the federal credit. All but three of those states have a larger EITC than Oklahoma’s. In 2016, the Oklahoma Legislature made the credit non-refundable in response to a budget shortfall. In 2021, the Legislature reversed this decision and restored refundability of the credit; however, the state credit was pegged permanently to 5 percent of the federal credit as of 2020. The non-refundable state EITC was claimed on 312,301 returns for $13.2 million in 2020, according to Oklahoma Tax Commission records.
Look up more key terms to understand Oklahoma politics and government here.
Quote of the Week
“A lot of people are paying 50% to 60% of their income on rent, because rent is so high. And one little life change, like an automobile breaking down, or a health event or a mental health breakdown or something, can can throw them into homelessness pretty quick, for lack of a rent payment.”
– Tulsa Day Center CEO Mack Haltom, speaking about the connection between the lack of affordable housing and the increase of people experiencing homelessness. [Tulsa World]
Editorial of the Week
Editorial: Parental choice voucher scheme another boondoggle of oversight
As predicted, the school voucher scheme that the Legislature approved last year has no quality controls and inspired private schools to raise tuition. The poorly conceived Parental Choice Tax Credit program offers up to $3,750 per student ($7,500 cap for a family) with no limit on household income. It ramps up to take $250 million from state revenue by 2026. [Editorial / Tulsa World]
- From OK Policy: Vouchers: Another Wrong Turn for Oklahoma Schools
Numbers of the Day
- 26% – Percentage increase of people experiencing homelessness in Tulsa, which rose from 1,133 last year to 1,427 in 2024. Like other providers that serve the homeless, Day Center CEO Mack Haltom expected to see the increase. [2024 Point in Time Count / Housing Solutions]
- $8,768 – Average annual cost in 2023 for toddler care at an Oklahoma childcare center, while the cost for toddler care at a home-based center was $7,627 per year. [U.S. Department of Labor] | [Interactive county-by-county map]
- 5% – Oklahoma’s Earned Income Tax Credit — a tax credit that subsidizes work for low-income families — is capped at 5% of the federal EITC credit. Of the 30 states that provide this tax credit to low-wage workers with families, Oklahoma has the nation’s fourth lowest credit. [OK Policy]
- $211.82 – The average, first-day cost of incarceration for someone housed in the Oklahoma County jail in 2023. The daily cost thereafter was $66.49. [The Oklahoman]
- 26% – Percentage of registered voters in Tulsa who cast ballots in Tuesday’s municipal elections. This was the lowest turnout since 1994. [Tulsa World]
What We’re Reading
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The Rent-Wage Gap: Perspectives on Housing Affordability: From the tenant’s viewpoint, the rent-wage gap transcends mere statistics; it translates into a daily struggle. Soaring rent prices, especially burdensome for low- and middle-income workers, force many to allocate an imbalanced share of their income to rent, leaving little for essentials like food, healthcare, and education. The resulting stress and uncertainty contribute to mental health problems and a diminished quality of life. [National Low-Income Housing Coalition]
- How New Mexico made child care free for most families: In August 2021, New Mexico dramatically expanded its child-care subsidy program to include families earning up to 400% of the poverty line. The state has also waived all co-pays, making child care free for qualified families. Approximately 70% more New Mexico families are now eligible for free child care. When coupled with its other new policies — including permanent funding and higher provider pay — advocates say New Mexico is a model in early childhood education. [High Country News]
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States Should Continue Enacting and Expanding Child Tax Credits and Earned Income Tax Credits: State child tax credits and EITCs build on the success of both federal credits by helping families afford the basics and reducing poverty; this, in turn, helps them thrive in the long run through improved child and maternal health, school achievement, and other benefits, research has found. Because people of color, women, and people who immigrated to the U.S. are overrepresented in low-paid work and in families with little to no earnings — due in part to discrimination, bias, and other structural barriers to opportunity — these two state credits are an important tool for advancing equity. And by bolstering families’ incomes, they also boost local communities and state economies. [Center on Budget and Policy Priorities]
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A $100 fine should never equal jail time: For some people, a parking ticket is a minor hassle at most. For others, through no fault of their own, a ticket can unravel their lives and livelihoods as fees quickly multiply and the stakes rise by the day. [Route Fifty]
- 24 Ways to Grow Voters In 2024: Engaging young people and supporting their electoral participation must happen year-round, and it’s never too early to start with an eye toward 2024. Our research frequently highlights ways to increase youth voting and address stubborn inequities in participation: from electoral laws that make it easier to register, to engaging youth based on the issues they care about. But achieving drastic improvements and eliminating, not just addressing, inequities requires major shifts in how we approach the task of ensuring all youth are informed, motivated, and ready to vote. [Center for Information and Research on Civic Learning and Engagement]
