Study: Oklahoma Standard Of Living Loses Ground

OKLAHOMA CITY (AP) A new study suggests working Oklahomans' standard of living has lost ground even as the state's economy has grown in recent years. <br/><br/>The report from Community Action

Tuesday, January 23rd 2007, 3:41 pm

By: News On 6

OKLAHOMA CITY (AP) A new study suggests working Oklahomans' standard of living has lost ground even as the state's economy has grown in recent years.

The report from Community Action Project, a Tulsa-based anti-poverty agency, found that between 2001 and 2005, the median wage in Oklahoma, adjusted for inflation, declined by nearly 1 percent. Median household income declined 4.5 percent over the same period.

``This State of Working Oklahoma report reveals the extent to which middle- and lower-income Oklahoma families are feeling the squeeze between stagnant incomes and rising costs,'' said David Blatt, director of public policy at CAP.

The report said:

_ Oklahoma's labor force is shifting from higher wage manufacturing jobs to lower wage service employment.

_ Wages paid to Oklahoma workers have declined in purchasing power even as productivity and business profits have increased.

_ Household income has stagnated for all but the wealthiest Oklahomans.

Recommendations made by the report include expansion of health insurance coverage for children, increasing the state earned income tax credit and creating a matched savings program to provide higher education opportunities for low-income children.

Phil Bacharach, press secretary for Gov. Brad Henry, said Henry had not had a chance to review the report yet, but has advocated some of the report's components.

``In particular, Governor Henry has worked hard to expand early childhood education programs, increase the numbers of Oklahomans with health insurance and promote college savings,'' Bacharach said.

The report came as the House Republican leadership was releasing a program designed to strengthen the economy by streamlining government and removing barriers to business activity. ``If we do this, we will attract investment and we will create a strong economy that will help everyone,'' said House Speaker Lance Cargill, R-Harrah.

Structural changes in the Oklahoma economy in recent years have been felt ``not only in the loss of income but also in the accompanying loss of job security, health insurance and pension benefits for many workers,'' said economist Jim Alexander, CAP economist.

Alexander and Kenneth Kickham, political science professor at the University of Central Oklahoma, wrote the report, which said as income declined or became stagnant for middle-class Oklahomans, prices for medical care, gasoline and utilities increased.

It said health insurance premiums increased by 60 percent between 2000 and 2006.

Blatt suggested lawmakers use the report as a guide to focus on programs ``that ensure the fruits of our economic prosperity are more widely shared.''

In urging expansion of the state's health insurance program, the report said some 650,000 Oklahomans, including 130,000 children, are without health care.

It called for legislation to lower the cost of payday loans and ensure their responsible use.

The report said that under legislation passed in 2003, more than 400 payday loan stores have sprung up across the state, making loans with interest rates up to 456 percent. It said payday lending is a major cause of financial stress among many families.