State's Economy Growth to Moderate (Dec 14, 2011)

For the past several years economists who spend time studying Oklahoma’s economic situation come together to present their findings. The general consensus for the next year is that Oklahoma’s economy will continue to grow, but at a moderating level.

Oklahoma State University economics professor Dan Rickman presented the 2012 Oklahoma Economic Outlook. One of the reasons his model calls for a slow down in the state’s economy is the price of gas and oil, though he says models anticipate higher prices in 2013.

Rickman also reported net migration into Oklahoma from 2007 through 2009 was 22,000. He also says the increase could explain one of the reasons why the state is seeing an increase in income for its residents while also experiencing a rise in the poverty rate. He says some of the people coming into Oklahoma are taking higher-paying jobs that are not going to current residents.

Speaking to reporters after the conference, Chad Wilkerson with the Oklahoma City Branch of the Federal Reserve Bank of Kansas City said in comparison with the national economy, Oklahoma continues to out perform the national economy. He said the state is only second to North Dakota.

Two economists at Tuesday’s conference focused on the public policy aspects of Oklahoma’s economy. For University of Central Oklahoma business school dean Mickey Hepner, talk and legislation that would eliminate the state income tax would be detrimental to Oklahoma.

University of Oklahoma economist Cynthia Rogers said it’s impossible to expect Cadillac services from state government with a Chevy budget. She told the attendees if you cut taxes, you have to cut somewhere else because there “is no free lunch.”

Overall, the latest economic model predicts that Oklahoma will continue to outpace the national economy, with nearly double the growth in employment rates compared to the U.S. average, and a gross state product increase of just more than three percent in 2012 and 2013.

You can view the charts, graphs and presentations.

Listen