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Yahoo
19-05-2025
- Business
- Yahoo
Oklahoma Republicans leaders are cheering their budget deal, but who does it really help?
Senate President Pro Tem Lonnie Paxton, R-Tuttle, and House Speaker Kyle Hilbert, R-Bristow, shake hands during an announcement of a 2026 budget deal on May 14 at the state Capitol. (Photo by Emma Murphy/Oklahoma Voice) Judging by all the backpatting we witnessed last week, Oklahoma's Republican legislative leaders want us to believe their latest budget deal will make our state a beacon of prosperity . In reality, it feels a lot like the opposite. It appears Oklahomans ended up with a budget agreement negotiated behind closed doors by a small group of influential lawmakers and lobbyists that got their hearts' desires at our expense. And, it appears this is a budget that has been crafted in a vacuum by people completely oblivious to the giant pile of flaming dog doo that Congress appears poised to leave on our doorstep. (Maybe that fire is the light from the previously mentioned beacon.) I couch this all with 'appears' because 99.99% of us have no idea how Oklahoma's budget was created. Last year, Oklahomans for the first time were able to watch budget negotiations play out in real time during a series of public hearings. While those conversations at times were as dull as watching paint dry, they really helped the public — including the media — understand how the deal was reached. And, they helped curtail lobbyists' influence. Unfortunately, the House and Senate legislative leaders who championed that strategy termed out or lost reelection. They were replaced by new leaders who, disappointingly, decided to scrap that process and largely revert to conducting budget talks in meetings that aren't publicly accessible. So we don't know why – after years of resistance – that this is the year lawmakers chose to bow to Gov. Kevin Stitt's pressure to cut the state's income tax. The expected impact of the 0.25% cut on state coffers varies greatly depending on who you ask. The timing is a headscratcher because Congress is planning cuts to Medicaid and the Supplemental Nutrition Assistance Program, better known as SNAP or food stamps, that could require states like ours to foot the difference. Not to mention that pesky inflation that while slowing has not disappeared. That $3.5 billion that lawmakers are bragging about having in savings isn't going to last long if the federal government decides to require our state to pay for federal programs that help low-income residents. Ours is the sixth poorest state after all. I don't understand why our Legislature doesn't want to wait until the dust settles in D.C. before making tax cuts. After all, to raise taxes requires a supermajority legislative vote or a vote of the people. Maybe lawmakers are focused on political points for the moment. But cutting taxes now could leave future Legislatures in a precarious financial position. It wasn't long ago that Oklahoma lawmakers cut taxes and then had to plug a $1 billion shortfall. During that time, in 2018, they had to cut services and even had to raise taxes on gas and diesel, cigarettes and gross production. I'd rather any savings from Stitt's tax cut be invested in fixing our pothole-ridden public roadways or boosting teacher salaries so we can get more qualified educators in our classrooms. Or perhaps we could invest it in growing other state agencies' budgets. Most of those will remain flat next year, which would be great, except for the fact that everything is getting more expensive. That means they're getting cut. Lawmakers increased public school funding by $25 million, but allocated double that in new money to private schools, which serve only a small fraction of school children. In exchange for that $25 million, public schools will be required to add an instructional day to their school calendar, which will pretty much eliminate any financial benefit from that windfall. Private schools face no such requirement. But even beyond that, this budget inexplicably contains over $750 million in special interest projects. Instead of requiring the University of Oklahoma and Oklahoma State University to fundraise to feed their ambitions, lawmakers think taxpayers should foot the $200 million bill to build OU's new pediatric heart hospital and spend $250 million so OSU can improve its College of Veterinary Medicine. Taxpayers are being asked to subsidize those projects at the same time our state's CareerTech is slated to see its budget reduced by about 8.8%, or by over $17 million. CareerTech is an entity that provides career and technical training to over 520,000 Oklahomans each year, preparing them to work in many of our professions that don't require a traditional college degree, but face critical shortages. Health care would be one of those. Maybe we should fund that and our other core government services adequately before spending $312 million to buy a private prison in Lawton. That purchase sounds like a terrible investment for a state whose voters have signaled at the ballot box that they want to reduce our state's incarceration rates. There wouldn't be a need to buy more prisons if lawmakers are taking that missive seriously. Most years these budget agreements sail through the Legislature, but there are plenty of new faces in the Capitol this year that have proven that they're not afraid to challenge the status quo. No budget agreement should ever be a done deal without giving Oklahomans time to weigh in. Like all budgets, it will still need to clear the committee process, be voted on by both chambers and be acted upon by Stitt. Lawmakers have until 5 p.m. May 30 to pass one. So here's hoping that lawmakers on both sides of the aisle take the time to listen to their constituents and that they're thinking critically about whether all the components of this budget along with the proposed tax cut best position our state for success in future years. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX SUPPORT: YOU MAKE OUR WORK POSSIBLE
Yahoo
16-05-2025
- Business
- Yahoo
Oklahoma education leader urges Legislature not to increase school funding, cut more taxes instead
State Superintendent Ryan Walters peaks at a news conference Friday at the state Capitol in Oklahoma City. (Photo by Nuria Martinez-Keel/Oklahoma Voice) OKLAHOMA CITY — In what appeared to be a campaign stump speech in all but name only, state Superintendent Ryan Walters called to eliminate Oklahoma's income tax and property tax and said the state should stop increasing funding for public schools. Walters, who leads the statewide public education system, said Oklahoma should slash administrative spending across state government. Finding these efficiencies, he claimed, would make up for the many millions of dollars public schools would lose if the state stops collecting income and property taxes. 'People love to throw around how much money you spend in education,' Walters said in a surprise news conference at the state Capitol on Friday. 'I don't want to be a leader in how much money we spend on education. I'll make that clear. I do not want to be that leader.' Walters, a Republican long thought to be a potential gubernatorial candidate, spent much of the news conference criticizing the state budget Gov. Kevin Stitt and legislative leaders announced Wednesday. He took questions from reporters for 40 minutes while a small group of his supporters cheered him on. When asked directly whether he intends to run for governor, Walters said that's a 'question I'll look at over the summer.' If Walters launches a campaign, he would join a 2026 Republican primary race of Attorney General Gentner Drummond, former House Speaker Charles McCall, former state Sen. Mike Mazzei and Leisa Mitchell Haynes, of Choctaw. House Minority Leader Cyndi Munson, D-Oklahoma City, is the only non-Republican in the race to succeed Stitt, who will be term-limited. 'My focus is the school year and this legislative session,' Walters said. 'We still have time this legislative session to get it right.' The offices of House Speaker Kyle Hilbert, R-Bristow, and Senate President Pro Tem Lonnie Paxton, R-Tuttle, declined to comment on Walters' remarks. The Governor's Office did not return a request for comment. Their $12.6 billion budget deal cuts the state's top income tax bracket by .25% and eliminates three lower tax brackets — a measure Walters said doesn't go far enough to support working Oklahomans. Stitt had urged lawmakers to cut the income tax by a half a percentage and to chart a path to eliminating the income tax altogether. The budget includes a 3.15% increase to the Oklahoma State Department of Education's budget and gives $25 million more to public schools. Despite saying on Friday that he wants 'less money going to our agency,' Walters had asked at the beginning of the legislative session for a 2.43% funding increase to the education budget. He had specifically requested $3 million to buy Bibles for public school classrooms, $1 million for a new teacher induction program, $1 million to recruit military veterans and former law enforcement officers to become teachers, and $500,000 to give educators concealed-carry firearms training. None of these proposals made it into the state budget that lawmakers and the governor crafted. However, state leaders agreed to boost a teacher maternity leave fund by $4 million and to dedicate $5 million to high-dosage tutoring for reading and math, an initiative inspired by a program Walters established. Every Oklahoma classroom will be stocked with a Bible, Walters said, even without any state funding to buy them. He said his administration has been collecting donated copies and already purchased more than 500 Bibles with agency funds. His new state standards for social studies education requires schools to teach biblical stories and the teachings of Jesus that inspired historical figures in American history. 'The Bible is going to be in every classroom this fall,' he said. 'The legislature can put the money there or not.' SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX SUPPORT: YOU MAKE OUR WORK POSSIBLE
Yahoo
15-05-2025
- Business
- Yahoo
Oklahoma Republicans tout proposed $12.6 billion budget deal
Gov. Kevin Stitt announces a budget deal for the 2026 fiscal year on May 14, 2025. Senate Pro Tem Lonnie Paxton, R-Tuttle, left, and House Speaker Kyle Hilbert, R-Bristow, right, and other legislative leaders joined the governor for the announcement at the state Capitol. (Photo by Emma Murphy/Oklahoma Voice) OKLAHOMA CITY – Gov. Kevin Stitt and legislative leaders on Wednesday announced an agreement on a $12.6 billion state budget for the upcoming fiscal year that contains a tax cut, increased education spending and money to purchase a prison. Republican leaders praised the budget deal, with one legislator calling it the smoothest negotiations he'd seen in seven years. Democrats, though, expressed doubts that the deal benefits Oklahoma residents. The proposed tax cut, which drops the state's top income bracket to 4.5% from 4.75%, comes after years of calls from Stitt. The Republican had faced roadblocks from lawmakers within his own party, who feared it could harm state coffers in bad revenue years. It also reduces the number of tax brackets from six to three. 'It stays in people's pockets to be able to be spent how they see fit,' Stitt said. The plan calls for triggers to further reduce the top bracket when revenue hits a certain target. Most Oklahomans fall within the top bracket. A family of four with an income of $50,000 would save about $137 a year, according to Senate staff. 'That's going to be very, very significant for a lot of families,' Stitt said. He said the cut is needed so Oklahoma can be competitive with other states. The budget agreement keeps most state agency allocations flat. However, it includes a 3.15% increase in public school funding, but a nearly 8.8% decrease in CareerTech funding, according to the Oklahoma State School Boards Association. Public schools will get $3.98 billion, up from $3.86 billion, according to the association. Some other agencies are slated to receive strategic investments for special projects. Some $200 million will go to construct a University of Oklahoma pediatric heart hospital, said House Speaker Kyle Hilbert, R-Bristow. Another $250 million is allocated to the Oklahoma State University College of Veterinary Medicine in an effort to increase the number of animal doctors in the state, Hilbert said. 'It has not been taken care of and it should be an absolute gem for the state of Oklahoma,' Hilbert said. The state also plans to buy the private prison in Lawton for $312 million. The facility currently houses about 2,300 Oklahoma inmates. The budget keeps about $3.5 billion in state savings, Hilbert said. Senate Appropriations Chairman Chuck Hall, R-Perry, said the budget allocates funding to address deferred maintenance at state facilities. It also calls for a $26 million supplemental appropriation for the financially troubled Oklahoma Department of Mental Health and Substance Abuse Services. In addition, it gives the agency some funds to finance the provisions of a settlement agreement that the state entered into after being sued for not providing competency restoration services to inmates awaiting trial, said Trey Caldwell, R-Faxon, the House Appropriations and Budget Committee chairman. On the policy side, Republicans said they agreed to create business courts, which are specialized courts that handle commercial litigation matters. They also said they've agreed to reform the state's workers' compensation system and lawsuits. Under the proposed tort reform, lawmakers are expected to propose a cap on damages for pain and suffering, called non-economic damages. A prior cap was deemed unconstitutional. The bills are being drafted and will run through the legislative process, officials said. Hilbert said it was the seventh year he has been involved in the budget process. 'I would say it to me it feels like the smoothest year in terms of budget negotiations amongst the three stools of the House and Senate and governor,' Hilbert said. Senate Minority Leader Julia Kirt, D-Oklahoma City, said her party was left out of the process and has some deep concerns about the budget. She said the budget has priorities for big business and corporate giveaways, but doesn't prioritize people and services. 'We don't believe this budget prioritizes people,' she said. Lawmakers must pass a budget before 5 p.m. May 30. Reporters Emma Murphy and Nuria Martinez-Keel contributed to this report. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX SUPPORT: YOU MAKE OUR WORK POSSIBLE
Yahoo
14-05-2025
- Business
- Yahoo
Gov. Stitt, legislative leaders announce budget deal including tax cuts, tort reforms: What we know
Gov. Kevin Stitt has joined Oklahoma legislative leaders in announcing a sweeping agreement on a nearly $12.6 billion state budget for the next fiscal year, one that features an income tax cut Stitt long has hoped for during his six-plus years in office. The deal, which the governor said was designed to make Oklahoma more business friendly, will cut the state's highest income tax rate by a quarter of a percentage point, Stitt said. The agreement also covers tort reforms and the creation of specialized business courts, which have been a priority for Stitt. "We're signaling to the world and the country that Oklahoma is open for business," Stitt said at a news conference Wednesday, May 14. He was joined by House Speaker Kyle Hilbert, R-Bristow, and Senate Pro Tempore Lonnie Paxton, R-Tuttle, as well as other Republican lawmakers. For years, Stitt has been a vocal advocate of reducing Oklahoma's income tax, which now stands at 4.75% for those earning more than $7,500. Before the current legislative session started, he rolled out his 'half and a path' plan to cut that tax by a half-percentage point and create a path toward a day when the state might completely eliminate income tax. In a year when projections show state revenues would be slightly down, and with most executive agencies asking for funding increases – not to mention the uncertainties regarding the state Department of Mental Health and Substance Abuse Services, which has an estimated financial shortfall of about $27.4 million for the current fiscal year – it was thought a tax cut would be unlikely. Budget questions at the Capitol: Will Oklahomans receive an income tax cut? Would a cut be wise? But that changed in recent days. On May 7, Stitt posted a video on X praising 17 senators — all Republicans on the more conservative side of the 39-person GOP caucus in that chamber — who had pledged to support a tax cut. The next day, Paxton said a tax cut remained a possibility. The day after that, Sen. Brian Guthrie, R-Bixby, filed Senate Concurrent Resolution 11, expressing the intent to enact a 0.25 percentage point income tax cut. While it's not the half-percentage point cut requested by Stitt, the governor seemed pleased with the deal, which he said gets Oklahoma closer to the tax rates of neighboring states. "We compete in a regional and also a national market, and we have to stay up with our competition," he said. According to an analysis by the Oklahoma Policy Institute, a Tulsa-based think tank, cutting income taxes by a quarter of a percentage point would reduce state revenues by $306 million. 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. The tax cut deal has landed a year after the Legislature approved, and Stitt signed, a bill that eliminated the state grocery tax. Last year, thanks to a transparency initiative led by the Senate, most of the budget negotiations between House and Senate leaders – and sometimes the governor – were done in meetings that were open to the public. Paxton, however, has said those meetings often had a circus-like atmosphere, and didn't want to repeat that process this year. School tax credits: Report shows 40% of credits go to households earning $150K or more Instead, he promised that legislators would have ample time – multiple days, preferably – to consider any budget agreement before having to vote on it. The deal reached Wednesday seems to fit those parameters. Paxton said at the news conference that he was focused during budget negotiations on making sure economic opportunities would be available to young Oklahomans. "This budget gets us a long ways down the road to make sure that happens," he said. Hilbert said he thought budget talks between the House, Senate and governor's office went as smooth as he had seen in his seven years being involved in the process. "We've figured out ways without being disagreeable and really move the state forward," he said. As Republican legislative leaders touted their collaborative efforts to reach a budget deal, Senate Minority Leader Julie Kirt, D-Oklahoma City, said Democrats in her caucus were left out of final discussions. 'We did not get details about this budget before this announcement was made,' Kirt said during a news conference following Stitt's announcement. 'We actually still don't have details because nothing was handed out.' While she was awaiting full details on the budget, Kirt said what her caucus had seen so far leads her to believe it doesn't go far enough to address key issues for Oklahomans. 'It's not focused on working families,' she said. 'It's not about solving the real problems that we have for our public schools, and then we don't hear solutions around health care and mental health care and people having the access they need to those things.' (This story was updated to add new information.) This article originally appeared on Oklahoman: Stitt, Oklahoma lawmakers reach budget deal with income tax cut, more
Yahoo
08-04-2025
- Politics
- Yahoo
Oklahoma governor backs down on forestry abolishment proposal after backlash
Gov. Kevin Stitt on Wednesday suggests elimination of the Oklahoma Forestry Service, criticizing its response to historic wildfires that swept across the state last month. His remarks were made during his weekly briefing with reporters in the Blue Room at the Capitol. (photo by Barbara Hoberock/Oklahoma Voice) OKLAHOMA CITY – A key legislative leader said Tuesday he is pleased that Gov. Kevin Stitt has backed off his call to abolish the Forestry Service following historic March wildfires. During a Tuesday interview with Oklahoma City television station News 9, the Republican governor said he no longer plans to abolish that state agency tasked with wildland fire detection and preserving the state's forests. Stitt's about-face came less than a day after he doubled down on his controversial call to shutter the agency and reallocate the funding to volunteer fire departments. 'It's encouraging to hear the governor's shifting position of abolishing the forestry department,' said House Speaker Kyle Hilbert, R-Bristow. 'I think Oklahomans said loud and clear that is not a good idea.' Stitt told the television station Tuesday that he threatened to close the Forestry Service because his administration was not getting answers about the deployment of resources. 'Listen, we are not going to get rid of forestry,' Stitt told the station on Tuesday. 'I love our forestry. Those guys are doing what they are told. The bureaucracy at the top, their management let them down by not deploying them accurately.' He told the TV station Tuesday that he had fired 'a couple more people at the top level at forestry because – they were – it was insubordination.' Stitt said Agriculture Secretary Blayne Arthur could not get answers from administrators in Forestry Services for three weeks. Stitt's office did not respond to Oklahoma Voice's requests for comment on Tuesday. During a press availability last week, Stitt first expressed frustration over how the agency responded to historic wildfires that began March 14. He lost a ranch in the fires. Nearly 158 wildfires swept across the state, killing four and destroying more than 500 homes. Stitt has previously said he fired the agency's head, Mark Goeller, who denied wrongdoing. Many have expressed support for Goeller. 'I didn't think they did a really good job,' Stitt said last week. 'Here's the deal. Why do I even have a Department of Forestry? Let's just get rid of the whole thing.' Goeller could not be reached for comment Tuesday. Stitt's remarks drew criticism from legislative leaders, including Hilbert, and local and volunteer fire departments. When asked about Stitt's claims that other Forestry Service leaders had been disciplined, Kirsten Hollansworth, a spokeswoman for the Oklahoma Department of Agriculture, Food and Forestry, said Tuesday that the agency does not comment on personnel matters. Stitt was also asked why he didn't declare a burn ban. 'It didn't hit the threshold at that point, is what they told me,' Stitt said. Stitt's office did not respond to a question from Oklahoma Voice on Tuesday about whether he was out of town in March. A Tulsa television station reported that Senate President Pro Tem Lonnie Paxton, R-Tuttle, was acting governor during a portion of the fires. While Stitt has said half of the resources were not deployed, his office did not respond to a request for additional information. Stitt's office said Tuesday afternoon in a press release that he had formed a fire response working group to 'enhance Oklahoma's wildfire mitigation, suppression, and recovery capabilities.' SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX SUPPORT: YOU MAKE OUR WORK POSSIBLE
