Oklahoma lawmakers have passed a $12.59 billion budget for fiscal year 2026, which includes significant tax cuts and flat funding for most agencies. According to News9, the budget reflects a slight 0.5% increase compared to the previous year despite agencies requesting over $13 billion in funding.
The approved budget effectively removes the bottom three income brackets for taxpayers and implements a quarter-point reduction for the remaining brackets. "Giving some relief to Oklahoma and staying up with the competition, and what other states around us are doing so we can be the most pro-business friendly state and getting us on a path to zero," Governor Kevin Stitt expressed, in a statement obtained by News9. While the tax cuts have been a key focus, the budget also sets aside a hefty $3.5 billion in savings.
Another area of interest in the budget deliberations has been mental health funding. Despite earlier discussions, the funding for the Oklahoma Department of Mental Health and Substance Abuse Services will remain static at $27 million, as reported by KFOR. Lawmakers indicated that a reevaluation of the funds will take place post the ongoing investigation into the agency.
On the bipartisan effort, House Speaker Kyle Hilbert said, "What can we do to make things better for the state of Oklahoma?" and pointed out, that the successes of the session were a result of a collaborative spirit, despite inevitable disagreements, as noted by News9. However, not all parties were satisfied with the outcome.
In a statement obtained by FOX 25, Senate Democratic Leader Julia Kirt criticized the budget for continually providing financial benefits for high-income individuals, while expressing concerns over the transparency of the budget negotiation process.
While Governor Stitt has hailed the budget as one that makes Oklahoma a top business-friendly state, the opposition laments the opaque nature of the discussions leading to the final agreement. "The most disappointing part is that we are willing to work on solutions. We always do work on bipartisan solutions, but are we at the table in the final [discussion]? No. We're deeply concerned. Definitely concerned about transparency. We did not get details about this budget before this announcement was made. We actually still don't have details," Senator Kirt told FOX 25 regarding her frustration with the process.
