OKLAHOMA CITY - The president of an economic consulting firm on Thursday defended a report showing the state could lose $1.8 billion in economic activity because of legislation that targets illegal immigration.

"We're confident in the methodology and stand by the results from our report," said Kyle Dean, president of Economic Impact Group, which was hired by the Oklahoma Bankers Association to do the study.

Rep. Randy Terrill, R-Moore, had criticized the report as exaggerated and based on "false assumptions." He said it did not account for more than $200 million Oklahoma would gain in state benefits paid to undocumented workers and their family members.

Dean said that issue was addressed in the report, as were the economic advantages gained by replacing illegal workers with unemployed Oklahomans. He said the report did not suggest that all undocumented workers would leave the state.

"It is likely, however, that the out-migration will include documented and undocumented workers for a variety of reasons, such as familial relationships and perceived immigrant hostility," Dean said.

"There is little evidence to suggest than an out-migration of immigrant labor will lead to a significant increase in labor force participation rates," he added, pointing to federal statistics showing that since 1976, Oklahoma has rarely had more than 65 percent of its labor force employed or looking for work.

The $1.8 billion projected economic loss was based on 50,000 foreign-born workers leaving the state. If 25,000 left, the loss was set at $786,000 in the short run. If 90,000 left, it was estimated to be $3 billion.

"We understand this is a highly emotionally charged issue, and one that Rep. Terrill is very passionate about," Dean said. "We're economists, not activists. We don't have a position on 1804.

"We were commissioned by the OBA to show through various scenarios, what the effects may be to Oklahoma's economy under the new restraints of 1804. That's all this study does."

Terrill has said the goal of the new law, which took effect on Nov. 1, is to cause as many illegal immigrants as possible to leave the state.

Officials of the OBA also said they had no position on Terrill's legislation, but commissioned the study after customers of some banks ran into financial problems after the bill was passed.

One restaurant that had been making regular monthly loan payments of about $5,000 went into default and closed its doors, construction projects in eastern Oklahoma were delayed because of a lack of workers and farm workers vanished in the southwest part of the state, said Roger Beverage, chief operating office of the OBA.

The immigration law prevents undocumented immigrants from obtaining driver's licenses and public services. It criminalized transporting, concealing or harboring them, and eventually will require employers to check immigration status of prospective employees through an online federal program.

State lawmakers around the country are proposing hundreds of bills this year seeking to reduce illegal immigration, including bills in eight states that are similar to Oklahoma's.

Some Oklahoma legislators have said the Legislature should have gotten estimates on the bill's economic impact before it was passed into law.

Sen. Co-President Pro Tem Glenn Coffee said Thursday there is "conflicting data" on the effect of the legislation, saying Oklahoma's economy appears to be performing better than most other states.

If the adverse economic impact from the immigration bill is considerable, he said there would be a lot more loans being called and more mortgages in trouble, as in the case in other part of the country.

"We're not seeing that problem. I think the verdict's still out (on the immigration bill's economic effect)," said Coffee, R-Oklahoma City.

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