Interim study examines Quality Jobs Program

OKLAHOMA CITY –The Senate Business and Commerce Committee held an interim study Monday looking at Oklahoma’s Quality Jobs Program and how the job-creation incentives could better serve Oklahomans and the economy. The program offers qualifying companies quarterly cash rebates equal to up to five percent of newly created taxable payroll for up to 10 years. The study was requested by Sen. Julia Kirt, D-Oklahoma City.

“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,” Kirt said. “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 is the director of PFM, the current independent evaluator for the Oklahoma Incentive Evaluation Commission. Bauer said the program offered 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 previously recommended that Quality Jobs Program should be retained with modifications, including requiring participants to pay the average county wage regardless of the statewide threshold wage. In 2018, 22 companies generated rebates while paying less than the average county wage on their start date.

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. She gave the example of a living wage for a family of three, including one adult and two children, in Osage County would be just under $86,000, but the program’s wage requirement for that county is just over $40,000.

Other presentations were made by the Oklahoma Department of Commerce and the Greater Oklahoma City Chamber.

“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 21^st 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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For more information, contact:  Sen. Julia Kirt at 405-521-5636 or Julia.Kirt@oksenate.gov