Oklahoma’s post-pandemic economic recovery is being bolstered by strong consumption tax receipts and a rebound of the state's oil and gas market, a year after it tanked and pushed the state's economy into a deep recession, Treasurer Randy McDaniel said.
In May, gross receipts to the Treasury surged more than 34% to $1.24 billion, and 12-month receipts are running at a record high.
Gross revenue of $13.88 billion over the past 12 months is $808 million, or 6.2% higher than that of the comparable previous period.
“What a difference a year can make,” McDaniel said. “At this time last year, unemployment was high, numerous businesses had significantly reduced operations, and many people were quarantined in their homes. Today, pent-up demand has been unleashed and the economy is performing quite well.”
The strongest indicator of ramped up economic activity comes from consumption tax receipts, McDaniel said. Combined sales and use tax collections for the month, all are up by 26%. Motor vehicle receipts are 16.6% higher than May of 2020.
May’s gross production tax on oil and gas activity generated $87.3 million, an increase of almost 128% from the prior year. Collections for the month reflect oil field production during March when oil was more than $62 per barrel after falling below $20 per barrel during the prior year.
The Oklahoma Business Conditions Index in May remained above growth neutral for a sixth consecutive month, McDaniel said. The May index was set at 68.9, down from a record high of 70.9 in April. Numbers above 50 indicate economic expansion is expected during the next three to six months.
The April unemployment rate in Oklahoma was 4.3%, according to the U.S. Bureau of Labor Statistics. The state’s jobless rate was unchanged from March, but down significantly from 13% in April 2020. The U.S. unemployment rate was set at 6.1% in April.
McDaniel, who was elected in 2018, announced last week that he would not run for re-election but would remain in office until his current term ends on January 9, 2023.
“It has been an honor to serve Oklahoma as state treasurer and as a state representative,” McDaniel said.
McDaniel said the timing of his announcement was meant to give candidates to succeed him enough time to organize and campaign.
McDaniel was elected as the 19th State Treasurer of Oklahoma in 2018, winning all 77 counties and receiving nearly 72% of the vote.
During his tenure, McDaniel has managed the consolidation of the state’s bond financing operations and has overseen major growth in the Oklahoma 529 College Savings Plan and OK STABLE, a savings and investment program for people with disabilities. He won legislative approval this year for a state income tax deduction for contributions to OK STABLE and increased flexibility for the allowable uses of college savings funds.
