Oklahoma’s SoonerCare work requirement is in federal hands. Now what?

You’ve heard a lot from us about Oklahoma’s proposal to cut Medicaid coverage for people who don’t meet a work reporting requirement. Now, the state’s efforts have entered a new phase. Here’s what’s happened so far and what to expect going forward.

Governor Fallin and Legislature spearheaded the effort in Oklahoma

Before 2018, federal regulators had not allowed any state to make Medicaid coverage contingent on meeting a work requirement. Most people on Medicaid who can work already do work, and those who don’t work have good reasons for not working. However, reversing decades of precedent, the Trump administration is encouraging states to submit proposals to cut coverage for Medicaid enrollees who don’t meet a work reporting requirement.

The 2018 Oklahoma legislative session opened with four work requirements bills. One, HB 2932, passed through both chambers and was signed into law. That spring, Gov. Fallin also signed an Executive Order instructing the Oklahoma Health Care Authority (OHCA), the state’s Medicaid agency, to begin building a plan to be submitted for federal approval.

Oklahomans came out against the proposal during two comment periods

So far, Oklahoma’s plan to cut coverage for parents who don’t meet a work reporting requirement has been through two rounds of public comments. Public comment periods serve a number of purposes – they show the public what the agency is planning to do, give the public an opportunity to respond, and help establish an administrative record. Both the state Medicaid agency and federal regulators have held comment periods for the state’s proposal. 

The Oklahoma Health Care Authority (OHCA) posted the plan for a 90-day public comment period on July 3, 2018 (the public comment period was initially scheduled for 60 days, but following significant public engagement, OHCA extended the comment period by another 30 days). During this time, OHCA received more than 1,200 public comments, with just 23 in favor of the proposal. OHCA also says it held 30 “public and targeted forums” around the state for input. After the state public comment period concluded in late September, OHCA made minor revisions to the proposal and sent it to federal regulators at the Centers for Medicare and Medicaid Services (CMS) on December 7th.

Having received the OHCA proposal, CMS posted it for another, shorter public comment period on December 20. Before that comment period concluded, CMS had received some 900 comments. As with the state-level public comments, the majority of comments were negative, with commenters alternately urging the state to withdraw the proposal and the federal government to reject it.

The ball is in the federal government’s court(s) 

With the second comment period concluded, what happens next is up to federal regulators. There’s no time limit for CMS to respond to the proposal, and CMS historically doesn’t respond quickly. Even with regards to proposals to cut coverage for parents who don’t meet a work reporting requirement – a policy CMS has encouraged states to implement – no state yet has received an approval within six months. Some have waited much longer: CMS took 15 months to approve a proposal from Maine, which Maine’s new governor has since withdrawn, and Utah’s proposal had been pending for 14 months before the state withdrew it (Utah has a new proposal pending with CMS).

There are other unknowns as well. So far, CMS has approved proposals to cut Medicaid for adults who don’t meet a work reporting requirement in eight states. All of those states but one have expanded Medicaid under the Affordable Care Act – and while the outlier, Wisconsin, isn’t technically an expansion state, it does have an abnormally robust Medicaid program that provides coverage to many adults who are uninsured in other nonexpansion states. In short, it’s not clear what CMS plans to do with nonexpansion states like Oklahoma, where childless adults and many parents aren’t currently Medicaid-eligible, and where income eligibility thresholds are so low that requiring 80 hours of work per month forces parents into a catch-22. This is because members who don’t report enough work may have coverage terminated for noncompliance, while members who do meet the requirement risk out-earning Oklahoma’s Medicaid income eligibility threshold and lose their Medicaid anyway, with few other affordable coverage options.

Furthermore, federal approval isn’t the end of the road.

It’s also possible that what the federal government would approve wouldn’t be what the state submitted. After the federal public comment period, federal regulators with CMS and the state will negotiate the specifics of the proposal in an effort to reach an agreement. The proposal can change a fair amount during that process. Furthermore, federal approval isn’t the end of the road. With federal approval, states then need to create the rules and systems to operate it.

Now, of the eight states with approved plans to cut coverage for adults who don’t meet the reporting requirement, we only have implementation data from one. In Arkansas, more than 18,000 members’ health coverage has been terminated after implementation, and Legal Aid, the National Health Law Program and the Southern Poverty Law Center have filed suit on behalf of these individuals. Indiana’s work requirement technically took effect this January, but members don’t have to begin complying until this summer, and members won’t be terminated over failure to meet the requirement until 2020. And while Kentucky was the first state to have a Medicaid work requirement approved, lawsuits have so far prevented the states’ plan from going into effect. 

The possibility of coverage expansion complicates the situation – but not by much

For the first time, Oklahoma legislators are seriously contemplating following in 37 other states’ footsteps and expanding access to health coverage as authorized by the Affordable Care Act. This should bring needed access to health care to more than 100,000 Oklahomans, most of whom are childless adults earning at or below the poverty level (up to about $12,500 for a single adult), and parents who out-earn the state’s current, very low income eligibility threshold (between about $7,800 and $16,900 for a single parent with one child).

It’s likely that any plan lawmakers would make to expand access to care would include cutting coverage for members of the expansion population who don’t meet a work reporting requirement. If that’s the case, Oklahoma should withdraw its current proposal, which would affect only very low-income parents (the eligibility threshold currently cuts off at about $7,800 per year for a single parent with one child). Some states (Arizona, New Hampshire and Ohio) have specifically exempted from the work requirement individuals who were eligible for Medicaid prior to expansion, typically low-income parents. Going further, Arkansas has exempted adults in a household with a child under age 18. This makes sense: while work requirements are generally bad policy, they’re especially bad for parents. Cutting coverage for parents who don’t meet a requirement will hurt both parents and their children. 

The bottom line

With so many moving pieces, the future of Oklahoma’s proposal to cut coverage for parents who don’t meet a work requirement is fuzzy at best.

With so many moving pieces, the future of Oklahoma’s proposal to cut coverage for parents who don’t meet a work requirement is fuzzy at best. The regulators at CMS don’t make decisions quickly, and it’s unclear whether the federal government will even approve a proposal for a non-expansion state like Oklahoma. What CMS approves may not be what the state submitted, and even if approval is granted, the state then has to design the process to run the program. After that, litigation could create further delays.  And that’s without getting into the possible roadblocks thrown up by congressional Democrats newly emboldened from their midterm victory. In short, whatever comes next for work requirements is likely to operate according to a timeline that stretches over months if not years. 

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[In The Know] Increasing scholarship tax credit benefits the wealthy; Bills amended to eliminate state agency boards; Stitt sign

View this email in your browser. In The Know is your daily briefing on Oklahoma policy-related news. Inclusion of a story does not necessarily mean endorsement by the Oklahoma Policy Institute. Click here to subscribe to In The Know and see past editions. In The Know is your daily briefing on Oklahoma policy-related news. Inclusion of a story does not necessarily mean endorsement by the Oklahoma Policy Institute. Click here to subscribe to In The Know and see past editions. New from OK Policy Increasing the scholarship tax credit hurts public schools and benefits affluent Oklahomans: In 2011, the Legislature passed the Oklahoma Equal Opportunity Education Scholarship Act, which grants tax credits to individuals or corporations who make a donation to a scholarship granting organization (SGO) or an educational improvement grant organization (EIGO). [OK Policy] OK PolicyCast 44: 2019 Bill Watch, Part 2: In our last episode, we heard from David Blatt and Carly Putnam about the big issues and bills we’re following this year related to the state budget and health care. This episode brings you part 2 of that bill watch series, with criminal justice analyst Damion Shade, education analyst Rebecca Fine, and economic opportunity analyst Courtney Cullison. [OK Policy] Prosperity Policy: Never too late to do what’s right: “For too long, the large number of Oklahomans without health insurance has taken a heavy toll on our families, health care providers, and workforce. Expanding Medicaid provides a rare opportunity to dramatically improve family economic security and overall prosperity for Oklahoma. We should not squander it.” So concluded one of my first columns for this newspaper, way back in July 2012. [Journal Record] New study shows cash bail system in Oklahoma costs local governments millions of dollars: A new study from the Oklahoma Policy Institute found the state’s bail system is costing both vulnerable communities and county governments millions of dollars each year. [FOX25] Read the full Open Justice Oklahoma report here.  In The News Reform bills amended to eliminate state agency boards: Five government reform bills key to the Senate GOP agenda were amended Tuesday evening to eliminate state agency boards. Each bill advanced from the Senate Rules Committee this morning on 11-2 votes along party lines, and combined they represent a primary component of Gov. Kevin Stitt’s policy agenda. [NonDoc] One of Gov. Kevin Stitt's top legislative priorities cleared key hurdles Wednesday as House and Senate committees voted to give the chief executive the power to hire the heads of major agencies. [NewsOK] Agency boards and commissions afford consumers of agency services some decision-making influence. State begins seeking private vendors for SoonerCare eligibility checks required by new law: The Oklahoma Health Care Authority is moving forward with implementing a new law that requires it to hire a private company to conduct eligibility verification for the state’s Medicaid program, though how much it will cost the state on the front end and how the application process will change is still up in the air, state officials said. [The Frontier] The new eligibility verification system will add bureaucratic hurdles for Oklahoma families and won’t generate promised savings. Stitt signs permitless carry bill: Just hours after final legislative approval was granted, Gov. Kevin Stitt signed a bill Wednesday that will allow Oklahoma residents to carry a firearm in public with no training or license. House Bill 2597, the so-called Constitutional Carry bill, advanced out of the Senate on Wednesday afternoon by a 40-6 vote. With Stitt's signature, the law takes effect Nov. 1. [NewsOK] "As I traveled all over the state, to all 77 counties, I heard from Oklahomans all over that they wanted us to protect their right to bear arms," Stitt said. [Public Radio Tulsa] Bill sets plate reader limits: A bill under consideration by the Oklahoma Legislature would clarify how some license plate information is kept and disseminated. The measure involves regulation of automated license plate readers that have been in use for years by the Corporation Commission that snap photos of vehicles entering Oklahoma. [NewsOK] Legislative watchdog bill advances: The Oklahoma Senate Appropriations Committee gave unanimous approval on Wednesday to a bill that establishes a legislative watchdog office. Senate Bill 1, authored by Senate President Pro Tempore Greg Treat, creates the Legislative Office of Fiscal Transparency, or to provide the Legislature with independent budget and performance data for lawmakers to use to write the budget and make policy decisions. [Journal Record ($)] House committee OK's cost of living adjustment for retired state employees: It might not be much and it might not be for awhile, but long-suffering retired state employees may finally get a cost of living increase. House Bill 2304, by Rep. Avery Frix, would provide 2 percent COLAs in 2020 from all six of the state’s pension funds. [Tulsa World] "We're pushing for it because our retirees need it," said Ginger Sigler, executive director of the Oklahoma Police Pension and Retirement System. [NewsOK ($)] Lawmakers work with foster care alumnus to make policy: The legislative session is moving quickly, and lawmakers are now busy working in their assigned committees to sort through relevant bills and resolutions. I am pleased to say that our legislators have filed many bills that seek to directly impact and improve child well-being. [Joe Dorman / Edmond Sun] Landlords hesitant to lease space to Oklahoma medical marijuana dispensaries: Some Oklahoma retail landlords are reluctant to lease space to medical marijuana dispensaries since State Question 788 passed in June 2018. On this week's Business Intelligence Report, Journal Record Editor Russell Ray discusses the difficulties banks are facing in relation to medical marijuana. [KGOU] Rule would place burden on operators of vertical wells: The Oklahoma Corporation Commission will consider a rule proposed by Devon Energy that would require vertical drilling operators to take action to reduce environmental impact of horizontal drilling prior to and during the drilling process. [Journal Record] Fewer tax withholdings mean most Oklahomans will receive smaller refunds this year: The Internal Revenue Service has reported that tax refunds are 17 percent lower than the same period last year. And many of my clients are seeing lower refunds. [NewsOK] State paid nearly $500K to defend Murphy case: The Oklahoma Attorney General's Office paid Lisa Blatt, her staff, and colleagues $475,761.66 for their work representing the state in the Murphy v. Carpenter case, according to documents obtained by The Journal Record in an open records request. [Journal Record ($)] Missing markers: As Tulsa Race Massacre centennial nears, plaques memorializing destroyed businesses disappear: More than a decade ago, as projects were finalized for Vision 2025 city improvement project grants, about $20,000 was set aside for historical markers in Tulsa’s downtown Greenwood District. The money paid for dozens of bronze plaques that memorialized businesses destroyed in the 1921 Tulsa Race Massacre. [The Frontier] 'I still think there is a lack of awareness': How Tulsa Public Schools is helping teachers introduce the Tulsa race massacre in classrooms: When the centennial anniversary of the 1921 Tulsa race massacre is recognized two years from now, it is expected there will be great interest in examining how Black Wall Street and the Greenwood District — the epicenter of the conflict that left at least 37 dead and hundreds more injured — have changed the city’s landscape. [Tulsa World] Meet the women of color who are revitalizing Tusla 100 years after the Tulsa massacre: After World War 1, Tulsa was recognized nationally for its affluent African-American community known as the Greenwood District also referenced to as The Black Wall Street. However, the thriving business district and the surrounding neighborhood began to unravel after the events that took place on the mornings of May 30th and June 1st, 1921. [Forbes] 'We don't want the history to die': OKC councilwoman shares Black History Month mission: Oklahoma City Councilwoman Nikki Nice is highlighting people who made a difference in the community for Black History Month.  “We have to tell those stories, because that’s a part of Oklahoma history and I think that’s a part of Oklahoma culture,” she said. [FOX25] Quote of the Day “I still think there is a lack of awareness. I’ve grown up here, and there are a lot of people who have grown up here who don’t know about or are aware of it. There is a lack of awareness for educators.” - Akela Leach, a fifth grade social studies teacher at Lanier Elementary School, on the importance and difficulty of teaching about the Tulsa race massacre [Source: Tulsa World] Number of the Day 43.2 years Life expectancy for Oklahomans with an untreated substance use disorder [Source: Oklahoma Department of Mental Health and Substance Abuse] See previous Numbers of the Day here. Policy Note If the economy is so great, why are car loan defaults at a record high? To live and work in much of the U.S., access to a car is virtually a requirement. Jobs, shops, doctors, and daycare are often unreachable by transit, and too far by foot or bike. Owning a car, the research shows, means your life is likely to be more stable and your bank account more flush. Unless you’re among the growing number of Americans who own a car that they can’t afford, and who are now drowning in the debt. [City Lab] You can sign up here to receive In The Know by e-mail. Connect with Us Oklahoma Policy Institute 907 S Detroit Ave, Suite 1005 Tulsa, OK 74120 (918) 794-3944 info@okpolicy.org Unsubscribe

43.2 years

Life expectancy for Oklahomans with an untreated substance use disorder

[Source: Oklahoma Department of Mental Health and Substance Abuse]

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Quote of the Day | February 28, 2019

“I still think there is a lack of awareness. I’ve grown up here, and there are a lot of people who have grown up here who don’t know about or are aware of it. There is a lack of awareness for educators.”

– Akela Leach, a fifth grade social studies teacher at Lanier Elementary School, on the importance and difficulty of teaching about the Tulsa race massacre [Source: Tulsa World]

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In The Know: Increasing scholarship tax credit benefits the wealthy; Bills amended to eliminate state agency boards; Stitt signs permitless carry bill…

In The Know is your daily briefing on Oklahoma policy-related news. Inclusion of a story does not necessarily mean endorsement by the Oklahoma Policy Institute. Click here to subscribe to In The Know and see past editions.

New from OK Policy

Increasing the scholarship tax credit hurts public schools and benefits affluent Oklahomans: In 2011, the Legislature passed the Oklahoma Equal Opportunity Education Scholarship Act, which grants tax credits to individuals or corporations who make a donation to a scholarship granting organization (SGO) or an educational improvement grant organization (EIGO). [OK Policy]

OK PolicyCast 44: 2019 Bill Watch, Part 2: In our last episode, we heard from David Blatt and Carly Putnam about the big issues and bills we’re following this year related to the state budget and health care. This episode brings you part 2 of that bill watch series, with criminal justice analyst Damion Shade, education analyst Rebecca Fine, and economic opportunity analyst Courtney Cullison. [OK Policy]

Prosperity Policy: Never too late to do what’s right: “For too long, the large number of Oklahomans without health insurance has taken a heavy toll on our families, health care providers, and workforce. Expanding Medicaid provides a rare opportunity to dramatically improve family economic security and overall prosperity for Oklahoma. We should not squander it.” So concluded one of my first columns for this newspaper, way back in July 2012. [Journal Record]

New study shows cash bail system in Oklahoma costs local governments millions of dollars: A new study from the Oklahoma Policy Institute found the state’s bail system is costing both vulnerable communities and county governments millions of dollars each year. [FOX25] Read the full Open Justice Oklahoma report here. 

In The News

Reform bills amended to eliminate state agency boards: Five government reform bills key to the Senate GOP agenda were amended Tuesday evening to eliminate state agency boards. Each bill advanced from the Senate Rules Committee this morning on 11-2 votes along party lines, and combined they represent a primary component of Gov. Kevin Stitt’s policy agenda. [NonDoc] One of Gov. Kevin Stitt’s top legislative priorities cleared key hurdles Wednesday as House and Senate committees voted to give the chief executive the power to hire the heads of major agencies. [NewsOK] Agency boards and commissions afford consumers of agency services some decision-making influence.

State begins seeking private vendors for SoonerCare eligibility checks required by new law: The Oklahoma Health Care Authority is moving forward with implementing a new law that requires it to hire a private company to conduct eligibility verification for the state’s Medicaid program, though how much it will cost the state on the front end and how the application process will change is still up in the air, state officials said. [The Frontier] The new eligibility verification system will add bureaucratic hurdles for Oklahoma families and won’t generate promised savings.

Stitt signs permitless carry bill: Just hours after final legislative approval was granted, Gov. Kevin Stitt signed a bill Wednesday that will allow Oklahoma residents to carry a firearm in public with no training or license. House Bill 2597, the so-called Constitutional Carry bill, advanced out of the Senate on Wednesday afternoon by a 40-6 vote. With Stitt’s signature, the law takes effect Nov. 1. [NewsOK] “As I traveled all over the state, to all 77 counties, I heard from Oklahomans all over that they wanted us to protect their right to bear arms,” Stitt said. [Public Radio Tulsa]

Bill sets plate reader limits: A bill under consideration by the Oklahoma Legislature would clarify how some license plate information is kept and disseminated. The measure involves regulation of automated license plate readers that have been in use for years by the Corporation Commission that snap photos of vehicles entering Oklahoma. [NewsOK]

Legislative watchdog bill advances: The Oklahoma Senate Appropriations Committee gave unanimous approval on Wednesday to a bill that establishes a legislative watchdog office. Senate Bill 1, authored by Senate President Pro Tempore Greg Treat, creates the Legislative Office of Fiscal Transparency, or to provide the Legislature with independent budget and performance data for lawmakers to use to write the budget and make policy decisions. [Journal Record ]

House committee OK’s cost of living adjustment for retired state employees: It might not be much and it might not be for awhile, but long-suffering retired state employees may finally get a cost of living increase. House Bill 2304, by Rep. Avery Frix, would provide 2 percent COLAs in 2020 from all six of the state’s pension funds. [Tulsa World] “We’re pushing for it because our retirees need it,” said Ginger Sigler, executive director of the Oklahoma Police Pension and Retirement System. [NewsOK ]

Lawmakers work with foster care alumnus to make policy: The legislative session is moving quickly, and lawmakers are now busy working in their assigned committees to sort through relevant bills and resolutions. I am pleased to say that our legislators have filed many bills that seek to directly impact and improve child well-being. [Joe Dorman / Edmond Sun]

Landlords hesitant to lease space to Oklahoma medical marijuana dispensaries: Some Oklahoma retail landlords are reluctant to lease space to medical marijuana dispensaries since State Question 788 passed in June 2018. On this week’s Business Intelligence Report, Journal Record Editor Russell Ray discusses the difficulties banks are facing in relation to medical marijuana. [KGOU]

Rule would place burden on operators of vertical wells: The Oklahoma Corporation Commission will consider a rule proposed by Devon Energy that would require vertical drilling operators to take action to reduce environmental impact of horizontal drilling prior to and during the drilling process. [Journal Record]

Fewer tax withholdings mean most Oklahomans will receive smaller refunds this year: The Internal Revenue Service has reported that tax refunds are 17 percent lower than the same period last year. And many of my clients are seeing lower refunds. [NewsOK]

State paid nearly $500K to defend Murphy case: The Oklahoma Attorney General’s Office paid Lisa Blatt, her staff, and colleagues $475,761.66 for their work representing the state in the Murphy v. Carpenter case, according to documents obtained by The Journal Record in an open records request. [Journal Record ]

Missing markers: As Tulsa Race Massacre centennial nears, plaques memorializing destroyed businesses disappear: More than a decade ago, as projects were finalized for Vision 2025 city improvement project grants, about $20,000 was set aside for historical markers in Tulsa’s downtown Greenwood District. The money paid for dozens of bronze plaques that memorialized businesses destroyed in the 1921 Tulsa Race Massacre. [The Frontier]

‘I still think there is a lack of awareness’: How Tulsa Public Schools is helping teachers introduce the Tulsa race massacre in classrooms: When the centennial anniversary of the 1921 Tulsa race massacre is recognized two years from now, it is expected there will be great interest in examining how Black Wall Street and the Greenwood District — the epicenter of the conflict that left at least 37 dead and hundreds more injured — have changed the city’s landscape. [Tulsa World]

Meet the women of color who are revitalizing Tusla 100 years after the Tulsa massacre: After World War 1, Tulsa was recognized nationally for its affluent African-American community known as the Greenwood District also referenced to as The Black Wall Street. However, the thriving business district and the surrounding neighborhood began to unravel after the events that took place on the mornings of May 30th and June 1st, 1921. [Forbes]

‘We don’t want the history to die’: OKC councilwoman shares Black History Month mission: Oklahoma City Councilwoman Nikki Nice is highlighting people who made a difference in the community for Black History Month.  “We have to tell those stories, because that’s a part of Oklahoma history and I think that’s a part of Oklahoma culture,” she said. [FOX25]

Quote of the Day

“I still think there is a lack of awareness. I’ve grown up here, and there are a lot of people who have grown up here who don’t know about or are aware of it. There is a lack of awareness for educators.”

– Akela Leach, a fifth grade social studies teacher at Lanier Elementary School, on the importance and difficulty of teaching about the Tulsa race massacre [Source: Tulsa World]

Number of the Day

43.2 years

Life expectancy for Oklahomans with an untreated substance use disorder

[Source: Oklahoma Department of Mental Health and Substance Abuse]

See previous Numbers of the Day here.

Policy Note

If the economy is so great, why are car loan defaults at a record high? To live and work in much of the U.S., access to a car is virtually a requirement. Jobs, shops, doctors, and daycare are often unreachable by transit, and too far by foot or bike. Owning a car, the research shows, means your life is likely to be more stable and your bank account more flush. Unless you’re among the growing number of Americans who own a car that they can’t afford, and who are now drowning in the debt. [City Lab]

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Increasing the scholarship tax credit hurts public schools and benefits affluent Oklahomans

In 2011, the Legislature passed the Oklahoma Equal Opportunity Education Scholarship Act, which grants tax credits to individuals or corporations who make a donation to a scholarship granting organization (SGO) or an educational improvement grant organization (EIGO). SGOs award scholarships for students to attend participating K-12 private schools, and while much less utilized, an EIGO awards grants to qualified public schools. Currently, the total amount of tax credits that donors can claim per fiscal year is $5 million; however,  SB 407 (Sen. Rader) and HB 2621 (Rep. Echols) would increase this amount to $20 million and $60 million respectively. Both bills passed through committee during the second week of session. 

Despite their name, these tax-subsidized scholarships to private schools do not promote equal educational opportunity. Instead, they channel tax money that could be used to fund public schools to pay private school tuition. Passing SB 407 or HB 2621 would mean backtracking on progress made last session, which increased tax dollars for public education. Today, public schools have 54,000 more students than they did in 2008, but due to tax cuts and budget shortfalls, they have $180 million fewer dollars to serve those students. Last year’s teacher pay raise was a great step forward, but Oklahoma schools still have far to go to be properly funded. Quite simply, this is not the time to take tax money away from public schools, and increasing the cap on scholarship tax credits would do just that. 

SGOs and EIGOs collect private donations and award scholarships 

In short, the tax incentive favors Oklahoma’s wealthiest families and businesses under the guise of helping those most in need.

Individuals and business have donated significantly more to opportunity scholarship funds over the years and have benefited from the tax credit. From 2013 to 2017, donations to SGOs skyrocketed from $570,000 to $5.1 million, compared to roughly $300,000 donated to the EIGO last year, according to estimates cited during the Senate committee debate on SB 407. The largest SGO in the state is the Opportunity Scholarship Fund, closely affiliated with The Oklahoma Council of Public Affairs, which primarily grants scholarships to Christian schools, but others include the Catholic Schools Opportunity Scholarship Fund and the Islamic School Foundation.

The state’s only EIGO is administered through the Oklahoma Public School Resource Center, an organization which largely supports rural and charter schools that pay a $2,500 membership fee. While the EIGO allows individuals to donate money to public schools, many districts already have foundations that receive private donations for their schools. Donations to public school foundations are eligible for a charitable deduction, but not the scholarship tax credit. Individuals and business who donate to SGOs or EIGOs are eligible for both tax credits and deductions. Additionally, SGOs and EIGOs may keep up to 10 percent of donations to pay for administrative costs. 

Scholarship tax credit benefits Oklahomans who have the means to give 

SB 407 and HB 2621 would increase the total amount of tax credits that can be claimed by donors, but the amount an individual, couple, or business can claim remains the same. Therefore, both bills would allow more individuals to claim the tax credit and increase the total amount of tax credits claimed by individuals. Advocates for opportunity scholarship funds are not sheepish about advertising how donors can profit from scholarship donations, and some private schools explicitly market these generous tax incentives. A Christian school in Oklahoma City told prospective donors that, “’by redirecting your tax dollars, you can directly support scholarships … at little, and sometimes NO, net cost to you.’” And this is true.

Individuals and businesses receive a 50 percent tax credit for a one-time donation, and a 75 percent tax credit for a two-year donation on top of the standard state and federal charitable tax deduction. Individuals can claim up to $1,000, married couples can claim up to $2,000, and businesses can claim up to $100,000. As such, the law benefits affluent Oklahomans who have the means to donate thousands of dollars and take full advantage of the tax credit. A couple can make a one-time donation of $4,000 and receive the full $2,000 tax break from the state and claim a charitable deduction. Currently, a perk in federal tax law allows families earning over $200,000 a year to actually make a profit on their donation by getting more in tax credits and deductions than they donate. In short, the tax incentive favors Oklahoma’s wealthiest families and businesses under the guise of helping those most in need.

There is no evidence that the scholarships serve low-income eligible students

While proponents argue that the scholarship tax credit is designed to expand school choice for low-income students, families who earn up to three times the federal poverty line (a family of four earning $139,000 a year) are eligible for scholarships. The law stipulates that a percentage of scholarships (“in an amount equal to or greater than the percentage of low-income eligible students in the state”) should be awarded to low-income students, but there is no provision that requires SGOs to report who actually receives the scholarships or how much they are awarded. This lack of transparency puts into question how far within reach private schools really are for low-income students.  In 2017-2018, the state’s three main SGOs granted scholarships averaging $1,800. With private school tuition and fees that can exceed $10,000, it is unclear how much low-income families must contribute to make up the difference.

Need for greater oversights, transparency, and data  

Because opportunity scholarship funds lack basic oversight, there is a lot we don’t know about the program. This dearth of information should call into question any claims that scholarship tax credits benefit the state or students. SGOs do not have to report the total amount of donations they receive or how much they award to participating schools. Nor do SGOs report the number of students receiving a scholarship who previously attended a public school.

This information is particularly important because proponents of the scholarship fund rely heavily on a study by Dr. Russel Evans, which claims that the state earns $1.39 for every dollar in tax credit it issues. Unfortunately, Dr. Evans’ conclusions rest on a number of shaky assumptions, including how many students were served by public schools before they left for private ones, along with a likely overestimation of the cost savings for students taken out of the public system.

If Indiana’s program is any indication, the number of students utilizing the scholarship fund who previously attended a public school is far less than the 75 percent Evans assumed. Finally, unlike Florida which requires scholarship students to take a norm-referenced test to track performance, Oklahoma has no idea if private schools adequately serve scholarship tax-credit recipients. The state does not require a similar test or that participating private schools report student achievement data.

The tax credit depletes public school funding and the promise of equal opportunity 

Proponents of SB 407 and HB 2621 claim that the Opportunity Scholarship Fund provides a lifeline for students forced to attend a struggling public school. However, the solution to this problem is not to siphon off tax dollars that could be invested in Oklahoma’s woefully underfunded public school system.  These bills could divert up to $60 million in tax dollars each year to pay for private school tuition. Ensuring that all Oklahoma children have the opportunity to receive a high-quality education begins with adequate and equitable funding, and increasing the Opportunity Scholarship Fund tax credit would chip away at this promise. 

Our Suggestions

• The tax credit cap should not be raised until tax payers know if students who receive the tax subsidized scholarships are making academic gains and if low-income students are benefiting
• Restrict SGOs and EIGOs from using the other’s tax credit limit if they exceed the cap on their side 
• Establish requirements to ensure greater transparency and data reporting
  • HB 1247 (Rep. McBride) would require SGOs and EIGOs to submit audited financial statements to the Oklahoma Tax Commission along with information detailing the benefits, successes, or failures of the program
  • HB 1012 (Rep. Rosecrants) would require private schools that receive scholarship tax credits to report information about services provided to students with disabilities
• Decrease income eligibility so that scholarships support those most in need
  • HB 1857 (Rep. Fugate) proposes to lower the income limit to 200 percent above the federal poverty line or $60,000, whichever is more 

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26.6%

Percentage of Oklahoma women ages 25 and over who have a bachelor’s degree or higher, compared to 24.4% of men.

[Source: U.S. Census 2017 American Community Survey]

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Quote of the Day | February 27, 2019

“In the classroom, kids are always asking questions, especially over the past year and a half or so. A lot of students are asking questions about what’s going on, why are we walking out, etc. and so forth. I think we’re doing them a disservice if we don’t answer those questions.”

-Tulsa Union High School teacher Jim Douthat, speaking about a bill introduced in the Legislature that would prohibit public school teachers from speaking about any political issues or legislation with students [Source: KJRH]

The post Quote of the Day | February 27, 2019 appeared first on Oklahoma Policy Institute.

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In The Know: How bail drains money from Oklahoma communities; reform advocates join parole board; child firearm deaths rise…

In The Know is your daily briefing on Oklahoma policy-related news. Inclusion of a story does not necessarily mean endorsement by the Oklahoma Policy Institute. Click here to subscribe to In The Know and see past editions.

New from OK Policy

Money bail costs vulnerable communities and county governments millions of dollars each year. Passing SB 252 could change that: Oklahomans who are arrested for nonviolent offenses often spend several weeks in local and county jails because they’re unable to afford to post money bond, incurring steep costs with little benefit to public safety. A new study of court records by Open Justice Oklahoma finds that the harmful effects of money bail are felt across the state, though differing policies across counties create deep disparities in the likelihood and length of pretrial detentions. [OK Policy] Read the full Open Justice Oklahoma report here. 

New study shows bail system in Oklahoma costs local governments millions of dollars: A new study from the Oklahoma Policy Institute found the state’s bail system is costing both vulnerable communities and county governments millions of dollars each year. [KTUL] Read the full Open Justice Oklahoma report here. 

Fact Check: Property crime decreased in Oklahoma after SQ 780: Oklahoma Policy Institute released a statement in response to recent media reports which spread unsupported claims that property crimes increased in the wake of State Question 780 reforms that recategorized low-level drug and property crimes from felonies to misdemeanors. [OK Policy]

More and better paid support staff key to improving Oklahoma’s schools: Walk through any school in Oklahoma, and you will likely find the proverb, “It takes a village to raise a child,” hanging over a teacher’s desk or printed on a principal’s mug. Decades of research about the importance of school climate confirm this saying. [Rebecca Fine / Enid News & Eagle]

In The News

Stitt appoints reform advocates to parole board: Gov. Kevin Stitt announced three appointments to the state’s Pardon and Parole Board on Tuesday that he said will bring a “fresh perspective” to a board from which he wants more inmate applications. The governor’s office announced the appointment of Kelly E. Doyle, Adam Luck and Robert Gilliland, who each will be first-time members on the five-person board. [NewsOK] Advocates for reducing Oklahoma’s prison population are praising Gov. Kevin Stitt’s selection of three new members to the state’s Pardon and Parole Board. [AP News]

Oklahoma governor reappoints Rhoades as safety commissioner: Gov. Kevin Stitt is reappointing the commissioner of public safety following an investigation at the agency that led to a criminal charge against a Highway Patrol captain. Stitt announced Friday he was reappointing Rusty Rhoades as the Commissioner of Public Safety, the same post he held under former Gov. Mary Fallin. [AP News]

Children injured and killed by firearms in Oklahoma on the rise: The Frontier analyzed data from the Office of the Chief Medical Examiner, Oklahoma Health Care Authority and Department of Health to determine how many youth age 17 and younger had been injured or killed by firearms. Dozens of children are injured or killed by firearms each year, but no single state agency keep track of them all. [The Frontier]

Gun law changes: Here’s what will be different when and if permitless carry is passed in Oklahoma: The man who pushed for years to allow concealed carry in Oklahoma said that while he thinks his bill made Oklahomans safer, he’s not a fan of permitless carry. [Tulsa World]

Cutoff date for kindergarten to be debated by full Oklahoma Senate: A Senate education committee voted Tuesday to move up Oklahoma’s kindergarten and prekindergarten cutoff date by one month, which would be one of the earliest dates in the country. Senate Bill 11 would require children to be 5 years old by Aug. 1 to attend kindergarten — and 4 years old for prekindergarten— rather than by the current cutoff date of Sept. 1. [NewsOK] We recently discussed how SB 11 could delay school readiness for students who need it the most.

New restructured school report cards will be released Thursday, pending vote from state education board: After a two-years hiatus, the Oklahoma State Department of Education is expected this week to release school report cards with a new design and a new priority. [Tulsa World] Q&A: Oklahoma’s New School Grading System. [Oklahoma Watch]

Epic Charter Schools under investigation by state, federal law enforcement agencies: Epic Charter Schools, the Oklahoma-based online education juggernaut, is now the target of scrutiny by state and federal law enforcement in addition to state lawmakers. [Tulsa World]

Bill aims to give crash course to educators with emergency teaching certificates: House Bill 1316 would require school districts to give at least two days of training for emergency certified teachers. That training would include classroom management, subject-specific instructional methods, school procedures and policies and writing lesson plans. [KOCO]

Bill proposed to keep politics out of Oklahoma classrooms: Senate Bill 574 would require every school district to create a code of ethics for teachers, and spend three hours in training each year to make sure classes don’t get political. If passed, teachers would also be unable to support candidates or legislation in front of students, and they couldn’t introduce a controversial subject or current event if it isn’t related to the course. Multiple teachers say they believe the bill is a response to last year’s walkout. [KJRH]

I was tired of how politicians treated teachers. So I became a politician: This is a story about how I lost my cool. As a teacher, I learned to put up with a lot of nonsense: disruptive students, lame excuses, and dumb bureaucratic rules. For 25 years, I handled classrooms with a smile and learned to kill with kindness. The truth is, I loved my job. [Rep. John Waldron / Education Week]

Changing the way Oklahoma defines bullying in schools: Safe School Committees meet in every Oklahoma school district to look at at bullying cases and find ways to make schools safer. One group says the definition of bullying could be causing them to miss thousands of cases, and hopes a new bill could hold the answer. [KJRH]

Speaker McCall, others favor county option for taxing aggregates: HB 1404 by Rep. J.J. Humphrey (R-Lane) would authorize counties to pass a $0.10-per-ton severance tax on the production of rock, gravel, granite, sand and limestone. Called aggregates, the materials are used primarily in construction capacities. [NonDoc]

As legislative deadline nears, poultry house regulation bill declared ‘dead’ by author: A bill that many residents of eastern Oklahoma affected by the recent proliferation of chicken farms had hoped would set stricter requirements on new poultry operations was declared dead for the session this week by its author after failing to receive a hearing in committee. [The Frontier]

Wind Day at the Capitol gave wind energy executives the chance to interact with Legislators: Wind Energy executives and workers along with other supporters were at the Oklahoma Capitol for Wind Day. 7 News found out why they believe money made from wind energy is making a big impact on the state, and more specifically public education. [KSWO]

State agency shifts focus to rising medical marijuana demand: The Oklahoma Medical Marijuana Authority has temporarily closed its customer service center to free up more staff to respond to the high volume of applications for medical marijuana cards. The number of applications received per week rose from 1,200 in September to around 5,000 in February, agency officials said. [AP News]

OKC Council approves incentives for Amazon: Amazon is set to begin hiring for more than 1,700 job openings related to its new fulfillment center in Oklahoma City. Oklahoma City Economic Development Project Manager Brent Bryant told the city council Tuesday the company plans to begin the hiring process for the new $140 million center in the next four to six weeks. [NewsOK]

Quote of the Day

“In the classroom, kids are always asking questions, especially over the past year and a half or so. A lot of students are asking questions about what’s going on, why are we walking out, etc. and so forth. I think we’re doing them a disservice if we don’t answer those questions.”

-Tulsa Union High School teacher Jim Douthat, speaking about a bill introduced in the Legislature that would prohibit public school teachers from speaking about any political issues or legislation with students [Source: KJRH]

Number of the Day

26.6%

Percentage of Oklahoma women ages 25 and over who have a bachelor’s degree or higher, compared to 24.4% of men.

[Source: U.S. Census 2017 American Community Survey]

See previous Numbers of the Day here.

Policy Note

The jail health-care crisis: According to a study released in 2017 by the Bureau of Justice Statistics, nearly half the people held in jails suffer from some kind of mental illness, and more than a quarter have a severe condition, such as bipolar disorder. The same year, the bureau reported that about two-thirds of sentenced jail inmates suffer from drug addiction or dependency; that number was based on data from 2007-09, so it does not take into account the recent catastrophic rise of opioid addiction. That epidemic and other public-health emergencies, in jails across the country, are being aggravated by failings in the criminal-justice system. [New Yorker]

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The post In The Know: How bail drains money from Oklahoma communities; reform advocates join parole board; child firearm deaths rise… appeared first on Oklahoma Policy Institute.

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[In The Know] How bail drains money from Oklahoma communities; reform advocates join parole board; child firearm deaths rise...

View this email in your browser. In The Know is your daily briefing on Oklahoma policy-related news. Inclusion of a story does not necessarily mean endorsement by the Oklahoma Policy Institute. Click here to subscribe to In The Know and see past editions. New from OK Policy Money bail costs vulnerable communities and county governments millions of dollars each year. Passing SB 252 could change that: Oklahomans who are arrested for nonviolent offenses often spend several weeks in local and county jails because they’re unable to afford to post money bond, incurring steep costs with little benefit to public safety. A new study of court records by Open Justice Oklahoma finds that the harmful effects of money bail are felt across the state, though differing policies across counties create deep disparities in the likelihood and length of pretrial detentions. [OK Policy] Read the full Open Justice Oklahoma report here.  New study shows bail system in Oklahoma costs local governments millions of dollars: A new study from the Oklahoma Policy Institute found the state’s bail system is costing both vulnerable communities and county governments millions of dollars each year. [KTUL] Read the full Open Justice Oklahoma report here.  Fact Check: Property crime decreased in Oklahoma after SQ 780: Oklahoma Policy Institute released a statement in response to recent media reports which spread unsupported claims that property crimes increased in the wake of State Question 780 reforms that recategorized low-level drug and property crimes from felonies to misdemeanors. [OK Policy] More and better paid support staff key to improving Oklahoma's schools: Walk through any school in Oklahoma, and you will likely find the proverb, “It takes a village to raise a child,” hanging over a teacher’s desk or printed on a principal’s mug. Decades of research about the importance of school climate confirm this saying. [Rebecca Fine / Enid News & Eagle] In The News Stitt appoints reform advocates to parole board: Gov. Kevin Stitt announced three appointments to the state’s Pardon and Parole Board on Tuesday that he said will bring a “fresh perspective” to a board from which he wants more inmate applications. The governor’s office announced the appointment of Kelly E. Doyle, Adam Luck and Robert Gilliland, who each will be first-time members on the five-person board. [NewsOK] Advocates for reducing Oklahoma's prison population are praising Gov. Kevin Stitt's selection of three new members to the state's Pardon and Parole Board. [AP News] Oklahoma governor reappoints Rhoades as safety commissioner: Gov. Kevin Stitt is reappointing the commissioner of public safety following an investigation at the agency that led to a criminal charge against a Highway Patrol captain. Stitt announced Friday he was reappointing Rusty Rhoades as the Commissioner of Public Safety, the same post he held under former Gov. Mary Fallin. [AP News] Children injured and killed by firearms in Oklahoma on the rise: The Frontier analyzed data from the Office of the Chief Medical Examiner, Oklahoma Health Care Authority and Department of Health to determine how many youth age 17 and younger had been injured or killed by firearms. Dozens of children are injured or killed by firearms each year, but no single state agency keep track of them all. [The Frontier] Gun law changes: Here's what will be different when and if permitless carry is passed in Oklahoma: The man who pushed for years to allow concealed carry in Oklahoma said that while he thinks his bill made Oklahomans safer, he’s not a fan of permitless carry. [Tulsa World] Cutoff date for kindergarten to be debated by full Oklahoma Senate: A Senate education committee voted Tuesday to move up Oklahoma’s kindergarten and prekindergarten cutoff date by one month, which would be one of the earliest dates in the country. Senate Bill 11 would require children to be 5 years old by Aug. 1 to attend kindergarten — and 4 years old for prekindergarten— rather than by the current cutoff date of Sept. 1. [NewsOK] We recently discussed how SB 11 could delay school readiness for students who need it the most. New restructured school report cards will be released Thursday, pending vote from state education board: After a two-years hiatus, the Oklahoma State Department of Education is expected this week to release school report cards with a new design and a new priority. [Tulsa World] Q&A: Oklahoma’s New School Grading System. [Oklahoma Watch] Epic Charter Schools under investigation by state, federal law enforcement agencies: Epic Charter Schools, the Oklahoma-based online education juggernaut, is now the target of scrutiny by state and federal law enforcement in addition to state lawmakers. [Tulsa World] Bill aims to give crash course to educators with emergency teaching certificates: House Bill 1316 would require school districts to give at least two days of training for emergency certified teachers. That training would include classroom management, subject-specific instructional methods, school procedures and policies and writing lesson plans. [KOCO] Bill proposed to keep politics out of Oklahoma classrooms: Senate Bill 574 would require every school district to create a code of ethics for teachers, and spend three hours in training each year to make sure classes don't get political. If passed, teachers would also be unable to support candidates or legislation in front of students, and they couldn't introduce a controversial subject or current event if it isn't related to the course. Multiple teachers say they believe the bill is a response to last year's walkout. [KJRH] I was tired of how politicians treated teachers. So I became a politician: This is a story about how I lost my cool. As a teacher, I learned to put up with a lot of nonsense: disruptive students, lame excuses, and dumb bureaucratic rules. For 25 years, I handled classrooms with a smile and learned to kill with kindness. The truth is, I loved my job. [Rep. John Waldron / Education Week] Changing the way Oklahoma defines bullying in schools: Safe School Committees meet in every Oklahoma school district to look at at bullying cases and find ways to make schools safer. One group says the definition of bullying could be causing them to miss thousands of cases, and hopes a new bill could hold the answer. [KJRH] Speaker McCall, others favor county option for taxing aggregates: HB 1404 by Rep. J.J. Humphrey (R-Lane) would authorize counties to pass a $0.10-per-ton severance tax on the production of rock, gravel, granite, sand and limestone. Called aggregates, the materials are used primarily in construction capacities. [NonDoc] As legislative deadline nears, poultry house regulation bill declared ‘dead’ by author: A bill that many residents of eastern Oklahoma affected by the recent proliferation of chicken farms had hoped would set stricter requirements on new poultry operations was declared dead for the session this week by its author after failing to receive a hearing in committee. [The Frontier] Wind Day at the Capitol gave wind energy executives the chance to interact with Legislators: Wind Energy executives and workers along with other supporters were at the Oklahoma Capitol for Wind Day. 7 News found out why they believe money made from wind energy is making a big impact on the state, and more specifically public education. [KSWO] State agency shifts focus to rising medical marijuana demand: The Oklahoma Medical Marijuana Authority has temporarily closed its customer service center to free up more staff to respond to the high volume of applications for medical marijuana cards. The number of applications received per week rose from 1,200 in September to around 5,000 in February, agency officials said. [AP News] OKC Council approves incentives for Amazon: Amazon is set to begin hiring for more than 1,700 job openings related to its new fulfillment center in Oklahoma City. Oklahoma City Economic Development Project Manager Brent Bryant told the city council Tuesday the company plans to begin the hiring process for the new $140 million center in the next four to six weeks. [NewsOK] Quote of the Day "In the classroom, kids are always asking questions, especially over the past year and a half or so. A lot of students are asking questions about what's going on, why are we walking out, etc. and so forth. I think we're doing them a disservice if we don't answer those questions." -Tulsa Union High School teacher Jim Douthat, speaking about a bill introduced in the Legislature that would prohibit public school teachers from speaking about any political issues or legislation with students [Source: KJRH] Number of the Day 26.6% Percentage of Oklahoma women ages 25 and over who have a bachelor's degree or higher, compared to 24.4% of men. [Source: U.S. Census 2017 American Community Survey] See previous Numbers of the Day here. Policy Note The jail health-care crisis: According to a study released in 2017 by the Bureau of Justice Statistics, nearly half the people held in jails suffer from some kind of mental illness, and more than a quarter have a severe condition, such as bipolar disorder. The same year, the bureau reported that about two-thirds of sentenced jail inmates suffer from drug addiction or dependency; that number was based on data from 2007-09, so it does not take into account the recent catastrophic rise of opioid addiction. That epidemic and other public-health emergencies, in jails across the country, are being aggravated by failings in the criminal-justice system. [New Yorker] You can sign up here to receive In The Know by e-mail. Connect with Us Oklahoma Policy Institute 907 S Detroit Ave, Suite 1005 Tulsa, OK 74120 (918) 794-3944 info@okpolicy.org Unsubscribe