From staff reports OKLAHOMA CITY – Optimism about the state’s economy is slightly down from last year, according to poll results released by The State Chamber last week.
The annual Oklahoma Business Leaders Poll is conducted by the Oklahoma Business Roundtable, the Senate Chamber of Research Foundation and The State Chamber. Three hundred and twenty-five business owners and executives were polled for the 2024 report. It is considered the “pulse check” of Oklahoma’s business community.
Last year, 70% of the leaders polled responded that the state economy is headed in the right direction compared to 67% in the current assessment. However, results showed that the sample of business leaders participating in the early summer poll are more optimistic about Oklahoma’s economic standing than the national economy. Workforce and education Top concerns include maintaining a skilled workforce and the education system’s effectiveness at preparing the needed workers. Even with a long list to choose from, 42% of business leaders identified workforce and education as the most pressing issue they face. However, despite their concern, business leaders see Oklahoma as a place for entrepreneurism and growth, the report stated.
Workforce demand is still strong, as 43% of poll respondents expect to increase their workforce over the next year. As for remote positions available, 50% expect the number to stay about the same. A stunning statistic reported that 80% of business leaders say students graduating from Oklahoma public high schools are not well-prepared for success in the workplace.
Only 19% of business leaders gave the state’s public school system even a passing grade, with the majority polled saying the state needs to improve most at the K-12 level. As for the Career Tech system, 67% of the polled leaders believe there are already enough resources to meet Oklahoma’s workforce needs. This indicates, the report stated, that business leaders overall do not see funding increases as the answer to closing the non-college skills gap. Tax reform In the good news category, the business community has a strong appetite for pro-growth tax reform. The collaborative report showed that 78% of the leaders surveyed favor reducing or eliminating the state income tax. This aligns with Gov. Kevin Stitt’s economic goals for Oklahoma, as he tried to push the Legislature to take up income tax reduction talks in the last session that ended in May.
State Senate leadership stalled the budget negotiations until the governor and state House of Representatives leadership removed the income tax question from the table. The current business poll reports that nearly 40% of respondents believe their business pays too much in state and local taxes. Over a quarter of the leaders (28%) said they support outright elimination of the income tax so Oklahoma can compete with other high-growth states.
However, although supportive of income tax reform, business leaders generally do not want to see tax cuts come at the expense of spending on core government services such as education, mental health programs and/or infrastructure. Overall, the formula sought can best be described as “cut income tax gradually” plus “pursue a long-term path to 0% income tax” plus “protect core services” equals pro-growth tax reform.
In addition, despite half of respondents’ businesses being subject to the corporate income tax — not individual income tax — it is significant that individual income tax is identified as most in need of reform by a nearly 2-to-1 margin, the report stated.
A slight majority of the business leaders surveyed (57%) believe the state should pursue various economic development incentives to grow Oklahoma’s economy. Business leaders overwhelmingly (70%) believe that the government should stay out of Environmental, Social and Governance issues and let private businesses and companies decide for themselves.
More details on the 2024 Oklahoma Business Poll are available at okstatechamber.com.