Oklahoma Legislature passes nearly $12.6 billion budget, sending it to governor

Yahoo

23-05-2025

The Oklahoma Senate has approved a $12.59 billion general appropriations bill for the state, sending it to Gov. Kevin Stitt's desk for his signature.
The Senate voted 27-19 on Thursday, May 22, to approve House Bill 2766, after about 45 minutes of questions and debate. The House had approved the measure 73-20 two days earlier. In both chambers, a group of far-right Republicans joined with all Democrats in opposing the budget bill.
When Stitt and legislative leaders touted their budget agreement – reached on May 14 – they cited a income-tax cut, the establishment of business courts, tort reform and multiple big-ticket one-time items including the purchase of a private prison in Lawton and major projects for the University of Oklahoma (a new pediatric heart hospital) and Oklahoma State University (a new facility for its veterinary hospital).
They also said that despite digging into state savings to help pay for those projects and others, the state still will have about $3.5 billion in savings.
The Legislature, in which Republicans hold supermajorities in both chambers, is required by law to pass an annual state budget. Lawmakers did so eight days before state law mandates their annual session must end.
'This budget is a reflection of Oklahoma's values—responsible, conservative, and focused on real results,' said Senate President Pro Tem Lonnie Paxton, R-Tuttle. 'We're prioritizing core services like education, mental health, public safety and infrastructure, while maintaining strong fiscal discipline. I'm proud of the Senate's work and the collaboration with our House colleagues to deliver a budget that supports families, strengthens communities and keeps Oklahoma taxpayers in mind. Now we send it to the governor's desk to move Oklahoma forward.'
Democrats in both chambers, however, said the budget plan won't improve the prosperity of average Oklahomans. Senate Minority Leader Julia Kirt called it 'a budget with mixed-up priorities' and added, 'I don't think this budget is what we need to move our state forward.'
'Oklahoma Senate Democrats will always work the aisle to address real problems facing our state, ensuring all kids get a great education, access to health and mental health care, and great-paying jobs,' she said. 'But instead, we got a budget that prioritizes tax cuts that mostly benefit the very rich, more money for private school vouchers, and does nothing to address the everyday issues Oklahomans face. You deserve better.'
More: A caveat on the budget, criticism for Ryan Walters: What Gov. Stitt has said this week
Several House Democrats said during debate in that chamber on Tuesday they weren't involved in final budget negotiations, effectively leaving out the voices of their constituents, who largely live in Oklahoma's urban areas.
'This was put together without the input of my district,' said Rep. Michelle McCane, D-Tulsa. 'I was not a part of any of these conversations until it was already decided.'
Her colleague, Rep. Trish Ranson, D-Stillwater, alleged that women were left out of negotiations.
The Republican chair of the House Appropriations and Budget Committee pushed back against that assertion. Rep. Trey Caldwell, R-Faxon, the chair of the House Appropriations and Budget Committee, called Ranson's claims 'factually incorrect' and said he 'had office hours at least once a week where we took over 130 meetings with different members including a large segment of the Democratic caucus.'
In the Senate, only Democrats had questions, or debated, against the bill on Thursday, although 11 Republicans voted against it, including three of the publicly known members of the far-right 'Freedom Caucus' – Sen. Shane Jett, R-Shawnee; Sen. Dusty Deevers, R-Elgin; and Sen. Dana Prieto, R-Tulsa. Another Freedom Caucus member, Rep. Jim Olsen, R-Roland, voted against the bill in the House.
Sen. Chuck Hall, R-Perry, the chair of the Senate Appropriations Committee, called the budget 'a fiscally responsible spending plan that keeps Oklahoma moving forward.' He said the budget 'is the result of months of collaboration and public input to ensure that every tax dollar is spent wisely.'
One of the more contentious items in the budget is a cut in the state income tax rate from 4.75% to 4.5%. The tax cut has long been a desire of Stitt, who eventually wants that tax to be eliminated. That conceivably could happen because of tax-cut triggers passed in other legislation, although not until years after Stitt leaves office in early 2027.
According to an analysis by the Oklahoma Policy Institute, a nonpartisan Tulsa-based think tank, cutting income taxes by a quarter of a percentage point would reduce state revenues by $306 million annually. That analysis showed such a cut would save Oklahomans who make $79,700 or less between $9 and $95 annually, and would save those in the top 1% of incomes — making $683,500 or more — $2,936 annually.
Citing Oklahoma Tax Commission numbers, Stitt said the cut would cost the state about $160 million in lost revenue during the next fiscal year. But Stitt maintains because that money is spent by taxpayers, not state government, it's better for the economy.
This article originally appeared on Oklahoman: Oklahoma lawmakers pass $12.6 billion budget. Will Gov. Stitt sign it?