Report Finds More Oklahoma Families Already Facing Tough Times; Economic Downturn Poses Threat of Increased Hardships

(Oklahoma City, May 6, 2008):    A growing number of Oklahoma families are already suffering financial hardships, even as Oklahoma's economy continues to perform strongly, according to "On the Brink," a new issue brief released today by Oklahoma Policy Institute. The extent of existing hardships, coupled with ongoing state budget challenges, raises strong concerns about the welfare of vulnerable families if and when the national economic slump begins to be more deeply felt in Oklahoma.

            The issue brief is the first publication from Oklahoma Policy Institute (OK Policy), a new statewide organization that will provide timely and objective analysis of state policy issues, with the goal of educating the public and guiding public policy decisions. OK Policy is committed to advancing policies aimed at alleviating poverty, promoting fiscal responsibility and expanding economic opportunity.

            While Oklahoma continues to enjoy solid economic growth and declining unemployment, "On the Brink" shows that the benefits of the strong economy are not being enjoyed by all.  A combination of stagnant incomes for many low- and moderate-income households and rapidly rising costs for such necessities as food, gas, utilities and medical care have left many people struggling to meet basic needs.

           The brief provides data documenting the steep rise in the number of Oklahomans living in poverty, filing for bankruptcy, foreclosing on their homes, and experiencing food insecurity and hunger. Among the indicators of growing hardship identified in the report:

• Oklahoma's poverty rate hit 15.4 per cent for the period of 2005-06, a sharp increase of 2.2 per cent compared to the prior two-year period, and its highest level in over a decade;
• Bankruptcy filings for the first three months of 2008 are up 23 per cent compared to the year prior;
• The number of mortgages in delinquency increased by over 50 per cent between the third quarter of 2005 and the third quarter of 2007;
• Oklahoma has the sixth highest rate of uninsured in the nation and the fifth highest percentage of individuals experiencing food insecurity.

            "If the economic situation worsens, we can expect to see more Oklahomans who are currently on the brink of financial hardship falling into a deeper hole," said David Blatt, policy director for OK Policy and the author of the brief.

           Blatt noted that a deteriorating economy will put more pressure on state human service programs and agencies to respond to growing demands at a time when tax revenues are falling and agencies are not receiving enough funding to maintain their current level of  services. "It will take a concerted effort to ensure that the state budget is not balanced at the expense of the vital services that keep economically fragile families afloat," he said.

For the full issue brief and a one-page fact sheet of key data, go to: http://www.okpolicy.org/files/hardship_brief.pdf

Contact: David Blatt, Director of Policy

Cell: (918) 859-8747

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Oklahoma Policy Institute (OK Policy) is a new state policy organization committed to advancing policies aimed at alleviating poverty, promoting fiscal responsibility, and expanding economic opportunity. To that end, OK Policy conducts objective analysis of state policy issues in order to better position Oklahoma to become a more prosperous, better educated, healthier, and increasingly equitable state.