Oklahoma leaders strike deal on budget agreement

Senate Majority Leader Greg McCortney, R-Ada, left, and Senate President Pro Tem Greg Treat, R-Oklahoma City, speak with reporters after reaching a budget agreement with the House and governor on Wednesday at the state Capitol. (Photo by Nuria Martinez-Keel/Oklahoma Voice)

OKLAHOMA CITY – With just days left in session, legislative leaders on Wednesday agreed to a fiscal year 2025 budget.

“I am glad we landed the plane,” Gov. Kevin Stitt said.

The deal appropriates $12.47 billion to fund state government in the upcoming budget year that begins July 1. The current fiscal year appropriation is $13.18 billion, according to House staff.

The agreement does not include a reduction in the personal income tax, despite efforts by Gov. Kevin Stitt and House Speaker Charles McCall, R-Atoka.

After passing a bill to eliminate the state sales tax on groceries at a cost of $308 million in revenue, the Senate refused to consider additional tax cuts.

Unlike prior years, budget negotiations were done in public and streamed online.

Eight days of talks stalled twice when Senate President Pro Tem Greg Treat, R-Oklahoma City, tried and failed to get the House to agree to override any possible veto.

Stitt got the ball rolling Wednesday when he offered four items to be included in exchange for a promise not to veto the budget.

Stitt wanted a pay raise for district court judges, preservation of his Quick Action Closing Fund used to generate economic development, funding for the tribal litigation fund and a plan to implement specialized business courts.

Legislative leaders agreed to a 7 % judicial pay raise for district judges, but indicated salaries for district attorneys and those working for the Oklahoma Indigent Defense System would also need to be increased for parity.

Treat said he was surprised by Stitt’s offer.

“He made the process come to a conclusion quicker than it would have otherwise,” Treat said. 

Stitt said he has not ruled out another special session on tax cuts. 

The budget makes critical investments in infrastructure, putting aside $350 million for deferred maintenance, Treat said.

It also keeps $1 billion in cash above and beyond the traditional state savings accounts, he said.

Several agencies will receive a flat budget, Treat said.

The budget includes:

• $30 million to the Oklahoma Health Care Authority to increase long-term care provider rates;

• $27.6 million to CareerTech to address waiting lists and admit more students;

• a $240 million allocation to the state’s two flagship universities for new engineering and science facilities;

• $74 million to the Department of Public Safety to complete a new training facility in Lincoln County;

• $27.5 million for a new Oklahoma State Bureau of Investigation headquarters, and;

• $45 million in disaster relief for counties recently impacted by tornadoes.

McCall said he was happy with the product.

“I am glad to have finished my final budget in the Oklahoma Legislature,” said McCall, who like Treat, is terming out.

Democratic leaders expressed concerns about the agreement.

“While we appreciate this agreement should negate the need for yet another costly special session, we are concerned the budget doesn’t address critical needs facing citizens in every district of the state,” said Senate Minority Leader Kay Floyd, D-Oklahoma City. “This is not a bipartisan budget, because it misses important opportunities to invest more in our schools, health and mental health, and other programs that would have improved the lives of working Oklahomans and their families.”

The budget must be approved by both legislative chambers by the end of the month.

Lawmakers must adjourn by 5 p.m. May 31.

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