When we talk about the minimum wage, the conversation usually focuses on the employer or the employee. But there is a third party in this equation that often gets overlooked: you, the taxpayer.
There is a common misconception that keeping the minimum wage at $7.25 is “cheaper” for our state. But the truth revealed in the latest Scioto Analysis report is that Oklahomans are already paying for low wages. They’re just doing it through the most expensive channels possible: emergency rooms, homeless shelters, and crisis intervention.
The High Price of the Status Quo
In the last three years, homelessness in Oklahoma hasn’t just increased. It has nearly doubled from 2,700 people in 2021 to nearly 5,500 in 2024. High rent combined with one of the quickest eviction timelines in the nation creates the perfect environment for people to slip through the social safety net and into homelessness.
When a family can’t afford rent because their wages haven’t kept pace with housing costs, they don’t just disappear. They enter a cycle of crisis that puts an immense strain on public and private funds. This is where the “hidden tax” of low wages hits hardest. Our shelters are at a breaking point. As they fill to capacity, more people end up on the streets, leading to increased costs for local policing, sanitation, social services, and healthcare.
According to the CDC, people experiencing homelessness are over four times more likely to require an ER visit than the general population. Emergency healthcare can be 10 to 12 times more expensive than preventative treatment. When workers can’t afford a home or a regular doctor, the ER becomes their primary care clinic—and the public often picks up the tab for those high-cost visits.
A Fiscally Responsible Path
Raising the minimum wage to $15 is about prevention. It is much cheaper to help a worker keep their apartment than it is to provide for them once they are on the street.
The report’s microsimulations show that a $15 minimum wage would act as a massive “cost-avoidance” strategy for Oklahoma by preventing up to 550 Oklahomans from experiencing homelessness, increasing medical savings by $514,000, and freeing up resources such as shelter beds.
Investment vs. Subsidy
Right now, by allowing a $7.25 minimum wage, Oklahoma is essentially subsidizing low-wage employers with taxpayer-funded emergency services. We are paying for the consequences of poverty instead of investing in the stability and overall health of our workforce.
The data is clear: When we pay workers enough to afford a basic apartment, we reduce the burden on our hospitals, our shelters, and our tax dollars. Supporting a $15 minimum wage is the pragmatic choice for a more efficient, fiscally sound Oklahoma.
To read the full report click here.
