Greater OKC Chamber’s State of the Economy highlights and takeaways

The Greater Oklahoma City Chamber's annual State of the Economy event featured a panel of distinguished economists and business leaders who discussed the state’s economic outlook, workforce development and fiscal policies under the incoming leadership of President-elect Donald Trump.

Economic Policies and Impact on Oklahoma - Mark Snead, an economist with the Oklahoma Council of Public Affairs, shared his insights on the potential impact of President-elect Trump’s economic policies. He noted that while the full outcome remains uncertain, Trump’s tax cuts, regulatory rollbacks, and proposed tariffs—particularly on China—could have both positive and negative effects on Oklahoma’s economy. Snead emphasized the state's strong oil and gas industry as a potential beneficiary of Trump’s pro-energy stance, while also cautioning that broad-based tariffs might not gain approval from Congress. Despite these uncertainties, Snead believes Oklahoma businesses could see long-term gains from reduced regulatory burdens.

Workforce Development and Education Needs - The conversation shifted to workforce development; a topic that has garnered significant attention statewide. Bob Dauffenbach, from the University of Oklahoma, highlighted recent efforts to address skills shortages, such as the establishment of the Oklahoma Workforce Commission and the formation of the Oklahoma Office of Economic Development. He stressed that improving both technical and general education, as well as soft skills training, will be essential in meeting the demands of tomorrow’s economy. Dauffenbach said that Oklahoma’s younger generation must be better prepared to thrive in the future, calling for enhanced investment in education and training programs.

Mark Snead echoed these points, highlighting the importance of increasing overall educational attainment and labor force participation. He points out the direct correlation between higher education levels and higher incomes, indicating these factors as fundamental drivers of economic growth.

State Tax Revenue Outlook and Fiscal Challenges - Dr. Russell Evans of Oklahoma City University discussed the state’s tax revenue situation noting that while wage growth has helped increase income tax revenues, sales tax collections are suffering due to consumer distress. Despite these challenges, Evans reassured the audience that the state’s reserve funds remain robust, offering some cushion in the short term. However, he acknowledged the delicate balancing act between maintaining lower taxes and investing in critical public services, a challenge that requires careful consideration by both state and city leaders.

Vision for Oklahoma’s Fiscal Future - The panel concluded with a final discussion on what changes could improve Oklahoma’s fiscal health. Bob Dauffenbach humorously suggested waving a magic wand to transform politicians into statesmen, while Dr. Russell Evans called for a shift away from GDP as the primary measure of economic success. Mark Snead offered a bold proposal: he suggested redirecting a portion of the state’s excess funds into higher education, specifically by expanding engineering and computer science programs at Oklahoma universities. This, he argued, would help address the state's workforce challenges by producing more high-skilled workers in critical fields.

The discussion provided valuable insights into the economic, educational, and fiscal challenges facing Oklahoma, highlighting the need for continued collaboration and strategic investment in the state's future.