Senate committee studies ways to improve Oklahoma's Quality Jobs Program for greater economic benefit
OKLAHOMA CITY (KOKH) - The Senate Business and Commerce Committee held a study on Monday looking at Oklahoma’s Quality Jobs Program and how the job-creation incentives could better serve Oklahomans and the economy.
The program offers companies quarterly cash rebates equal to up to 5% of newly created taxable payroll for up to 10 years.
“I think it’s important to take a contemporary look at what a quality job is in terms of living wages, retirement savings, and paid family leave, and how we can improve on this program to the benefit of Oklahomans, their families, and the state’s economy,” said Sen. Julia Kirt. “When the Quality Jobs Act was signed into law in 1993, it was considered to be ground-breaking in terms of attracting new jobs to the state, and we heard several experts during this study acknowledge it’s still our flagship program. Based on what we heard during this study, I think we can make it even better.”
Randall Bauer, director of PFM, said the program offers a significantly higher return on investment that most incentive programs and is a well-functioning incentive, but talked about ways it could be updated. PFM recommended that the Quality Jobs Program should require participants to pay the average county wage regardless of the statewide threshold wage.
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Emma Morris, health care and fiscal policy analyst for the Oklahoma Policy Institute, said current Quality Jobs requirements do not always meet modern economic needs and that a living wage should provide enough income for a family to meet basic needs, including childcare, transportation, housing, food and other necessities without relying on public assistance.
“I was really gratified to hear from the Department of Commerce that 70 percent of the businesses receiving Quality Jobs incentives were already located here in the state and expanded,” Kirt said. “Commerce talked about the 21st Century Quality Jobs Program, which is providing excellent opportunities for Oklahomans in knowledge-based service industries, such as STEM fields, that can pay six-figure salaries. Quality Jobs is an important economic development program and one we must continue to leverage to improve wages and diversify our economy.”
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