Tulsa World: State ranks 4th in income growth

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State ranks 4th in income growth

By LAURIE WINSLOW World Staff Writer
Published: 3/25/2009 2:20 AM
Last Modified: 3/25/2009 3:08 AM

Oklahoma ranked No. 4 nationally in percentage growth of personal income last year, a new report shows.

Like other oil-producing states, it benefited from the rise in the commodity's price, which peaked in July, the Bureau of Economic Analysis, a branch of the U.S. Department of Commerce, reported Tuesday.

Oklahoma's personal income grew 6.4 percent last year compared with 8 percent in 2007. As first reported on tulsaworld.com, personal income reached $134.4 billion last year, up from $126.3 billion in 2007.

By contrast, U.S. personal income growth slowed to 3.9 percent last year, the lowest since 2003, the bureau reported.

On a quarterly basis, Oklahoma's personal income rose only 0.1 percent in the fourth quarter, down from 0.5 percent growth in the third quarter and 3.1 percent in the second quarter. Even with that slowdown, the state's fourth-quarter growth ranked No. 6 nationwide.

"It's really good news. Part of what makes us stand out as a region and as a state is that we have strong income," said Bob Ball, economic research manager for the Tulsa Metro Chamber. "Income means that people have money to spend, and they do."

Home prices and retail sales seems to be holding up. The strong income numbers are reflective of population growth for the state, and especially for Tulsa, which has drawn people with its attractive income levels, Ball said.

Recent estimates from the U.S. Census Bureau show that Tulsa County's population grew by 7,841 during a one-year period ending July 1.

Personal income is a comprehensive measure of the income received by all residents from all sources. In addition to wages and salaries, it includes employee pension and insurance funds, dividends and interest income, and other types of income, according to the BEA.

Growth rates ranged widely among states. Oklahoma joined a list of other oil-producing states, including Alaska, Wyoming and Texas, that benefited from rising oil prices last year, according to the BEA.

Mining, which includes oil and natural gas production, was the standout sector that contributed to Oklahoma's personal income growth last year.

Mining contributed $10.5 billion to Oklahoma's earnings last year, up from $8.6 billion in 2007, said David Lenze, an economist with the U.S. Department of Commerce.

"Oil prices peaked in the middle of last year, and they were falling in the fourth quarter. They've resumed rising in 2009, and that's an important indicator of what will happen to earnings of oil workers in Oklahoma," Lenze said.

The manufacturing sector also played a prominent role in the state's personal income. Combined, durable goods and nondurable goods manufacturing were the second biggest contributor to Oklahoma's personal income growth, Lenze said during a phone interview.

"I think some of that is related to mining. The processing of oil can be part of nondurable manufacturing, and there are feedbacks to other industries," he said.

Construction also is notable in Oklahoma "because that is a declining industry in most every state," but it contributed 0.34 percentage points to the state's personal income growth last year.

State and local government as well as health care also were noteworthy contributors to the state's personal income growth for the year.

Oklahoma's per capita — or per person — personal income rose from $34,997 in 2007 to $36,899 last year. The latter figure also placed the state at No. 4 nationally in 2008, up from No. 6 the year before.

Nationally, "The thing that I think is most important is that on a per capita basis, personal income growth did not keep pace with inflation last year.

"For households to consume, personal income is an important factor," Lenze said.

Nationally, per capita personal income grew 2.9, which wasn't enough to keep pace with inflation which grew 3.3 percent.

Oklahoma, however, bucked the national trend with per capita personal income growth of 5.4 percent that outpaced the inflation rate.

Laurie Winslow 581-8466
laurie.winslow@tulsaworld.com By LAURIE WINSLOW World Staff Writer

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Some reader comments for this story were copied from "Oklahoma personal income grows despite tough economy," which was published on 3/24/2009.

	Report Comment Arbythree, Tulsa (3/24/2009 9:38:40 AM) Yea!!!!!
	Report Comment KBarrow, (3/24/2009 11:39:57 AM) Yep.....I live in the wrong state. I'd gladly have that average as my income right now.....just to survive.
	Report Comment Buffaloe, (3/24/2009 1:11:33 PM) how about the local sales tax at 9.517%...it's still the same high tax rates for no return...we'll be at 10% with nothing to show for it
	Report Comment dukeera, Jenks (3/24/2009 1:13:16 PM) Take that Oregon, Michigan and Georgia!! Rather rude to point out others that we're better than... but I'll take that for now. Until we reach the better half of the 50 states...
	Report Comment Popeye, T-Town (3/24/2009 1:14:14 PM) Not a bad showing for a bunch of "hillbillie", "Okie", "Redneck", "Bible-Thumping", "Backwoods", "Neo-con", "RePiglican", "Red State", ad nauseum, folks as defined by B'Vile Yellow Dog and his ilk ! Where are all of the Left-wing whiners on articles like this? Losers!
	Report Comment T.B'Ville, Bartlesville (3/24/2009 10:31:46 PM) And who on here is this supposed to make feel good!
	Report Comment my view, Sand Springs (3/24/2009 10:33:45 PM) They [left wingers] can't handle the truth Popeye. I'm retired and still doing well.
	Report Comment I'm Reliable, (3/24/2009 10:48:19 PM) The only things growing in Oklahoma are meth labs and marijuana plants!! Only God can help these Okies!!!!!!!!!!!!!!!!
	Report Comment Eagle 4, Tulsa (3/25/2009 6:59:48 AM) Wow! That's equal to 4 Bill Gates! I'm impressed. And that's without the mary jane and meth income!
	Report Comment Loophole, (3/25/2009 7:57:56 AM) OK, so manipulate statistics to make folks feel good. It's not just the growth. Where does Oklahoma rank in per capita income nationwide? That's the real statistic and without it, the "growth" statistic means little if anything.
	Report Comment :), (3/25/2009 8:36:39 AM) Oklahoma's per capita income needs another 10% increase just to meet the national average. Home prices must rise almost 30% to be in line with the rest of the nation.
	Report Comment Ignatz, Broken Bow (3/25/2009 8:38:49 AM) Hey, let's all make up statistics to support our political point of view, or simply be like McSwine and ignore facts altogether!
	Report Comment The Reaper, Hells Gate (3/25/2009 8:41:43 AM) I would like to see a spread sheet and see how much is income in wages paid verses dividends paid on oil production while oil was at $100+ a barrel. If it was because of oil then it's only a temporary gain good news for stockholders but not much for the people breaking their backs.
	Report Comment michael andrew, pryor (3/25/2009 8:54:01 AM) yellow dog, cant you at least be positive about something? i have to say my wife & i did ok last year... this year wont be as good but, not too bad.
	Report Comment Eric, Tulsa (3/25/2009 9:00:40 AM) ... If I read this report correctly, the "growth" was based on the sky-high oil prices of last year...which, if that is right, then we should see a whole different report this time, next year. ... .. .
	Report Comment WilliamTheArtist, (3/25/2009 9:18:06 AM) Relying so much on high oil prices is not such a good thing. I hesitate to wonder what our stats are going to be like this year and next. as for..........Not a bad showing for a bunch of "hillbillie", "Okie", "Redneck", "Bible-Thumping", "Backwoods", "Neo-con", "RePiglican", "Red State", ad nauseum, folks as defined by B'Vile Yellow Dog and his ilk ! Where are all of the Left-wing whiners on articles like this? Losers! Oil just happened to be here lol, we got lucky. Yet even with this "manna from heaven" and despite having the lowest, over all tax burden of most any state... we still cant seem to get up to the higher income levels etc. And even with both those factors which should be helping us greatly, we have high crime rates, some of the highest homicide rates, meth and drub abuse rates, poor health, tobacco use, obesity, diabetes, divorce, child mortality and abuse, hunger, divorce... etc. etc. etc. Yea you get to keep a few more holy dollars in your pocket (still not up to the national average)and ignore the quality of life issues, (or even whether you are alive and not murdered or on drugs, unhealthy, or a dead abused child, etc.) You have your priorities and I have mine.
	Report Comment Angry Citizen!, Bluejacket (3/25/2009 9:32:30 AM) Well it's official and niot fair to the rest of the country, tax the greedy rich Oklahomans back to their former income levels!
	Report Comment Graychin, Eucha (3/25/2009 10:01:45 AM) Jed Clampett had a good year!
	Report Comment grizz, tulsa (3/25/2009 11:19:40 AM) Looks to me like the rich got richer. I'm so happy for them. I knew the wingers would take credit for it, though.
	Report Comment inspector_8, East of Tulsa (3/25/2009 12:04:04 PM) The average worker got left behind during the last eight years, before that, eight good years under Clinton, before those twelve bad years under Reagan and Bush41. Reagan and Bush started the deregulation that caused the Savings and Loan bailout ($250 billion), Reagan put union's down and put all the women to work to pay the families bills, because her husband got his wages cut, because unions aren't strong and big business runs right over labor. The top 1% that controls 99% of the money puts their stock options, bonuses, and all excess compensation in tax hidey holes, and gets Politician’s to drop their tax rate to 35% from Clinton's 39.5 %, when we had a budget surplus. Half or more of Oklahoma's are fooled by the Republican language such as Death Taxes, Right to Work, Workman's comp. reform, lawsuit reform, tax cuts. These are all stabbing the working slob right in the back, stealing from his paycheck, and throwing him away when he gets hurt, sick, or aged. Wake up; Republican's have created the American Aristocracy that Jefferson specifically wanted to be kept out of America when his Estate Taxes were enacted.
	Report Comment Bubba, Bixby (3/25/2009 12:08:56 PM) "Isn't lying with numbers wonderful? Never mind that actual per-capita income is amongst the lowest in the country. One can play all sorts of games with percentages." BYD, you remind me of a diaper. The cost of our homes and energy is also amonst the lowest in the nation, therefore residents of Oklahoma require less income to live at the same level in other areas. For example $35K/year in Tulsa is equal to $57K/year in Boston, MA or $70K/year in Los Angeles.
	Report Comment jrbinstl, Saint Louis (3/25/2009 12:54:30 PM) Oklahoma is a cheap place to live. That's my arguement for not going crazy raising teacher's salaries. They don't do bad for 9 months of work in a cheap state.
	Report Comment Bodean, Tulsa (3/25/2009 5:19:48 PM) Bubba, (3/25/2009 12:08:56 PM) > "The cost of our homes and energy is also amonst the lowest in the nation, therefore residents of Oklahoma require less income to live at the same level in other areas. " A lot of people beleive that. But having moved here from one of the cities you compare to Tulsa and having taken a pretty big salary cut, I'm going to have to disagree. About the only thing I pay less for here is gas and parking.
	Report Comment Woofenburger, Hominy (3/25/2009 9:07:17 PM) I know I didn't have such a good year last year...but I don't own any oil or gas production either. I paid a lot more for my gasoline and didn't make any more salary than I did the year before. This has carried over to this year when, yes, gasoline prices have declined but anything that has to be delivered still costs more because of the increased freight charges that haven't gone down since the price of gasoline did.
	Report Comment MaintenanceMan, Tulsa (3/26/2009 12:37:43 AM) Graychin, that was good. My income sure didn't go up as much my cost of living but I'm happy for the people who benefitted. I personnally knew several widowers and senior citizens who depended on royalties that hadn't been paying much during previous years. Its not all about greed, but also about need. I tell you that if gas goes back to $4 I'll need a raise. Electric rates just got another increase, if Obama does the cap and trade, it will go up some more.
	Report Comment BottleCap, BA (3/26/2009 3:03:25 PM) I thought income was going to go down once we passed right-to-work. Another liberal myth debunked. No, we're not among the nation's highest, but to be able to grow while the others a shrinking only shows that we are really making progress in Oklahoma. Why is it that liberals always need bad things to happen to people to feel good and get their agenda passed?
	Report Comment BottleCap, BA (3/26/2009 3:05:18 PM) Personally, my personal income has almost doubled in the last 2 years. I got lucky with some re-education and a career change. That's right....hard work and education help you get ahead in life...not government handouts.

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