Kicking off the 60th Oklahoma Legislature, Governor Kevin Stitt on Monday outlined his agenda in his seventh State of the State Address on Monday.
Stitt’s tax cut proposal is coined “Half and a Path.” He’s calling for a half percentage point cut to the personal and business income tax with the Legislature charting a path to bring income taxes down to zero.
“I like to remind the naysayers when we cut taxes, the money doesn’t disappear. It simply stays in Oklahomans’ pockets and gets reinvested in our economy.
“In times of excess revenue, Oklahomans should keep more of their hard-earned money.
“That is how we keep pace with our competition and protect Oklahoma taxpayers,” said Stitt during his speech.
The Governor also wants to replicate the drive to cut government growth inspired by the current Trump Administration’s Department of Government Efficiency or DOGE. It is led by billionaire Elon Musk to identify places to cut federal spending, programs, and possibly agencies.
Stitt signed an executive order on Monday creating the Division of Government Efficiency within the Office of Management and Enterprise Services (OMES), one of the state’s largest agencies touching several agencies with its services.
“Today, I’m launching DOGE-OK to keep the focus on flat budgets and limited government.
“For years, I’ve instructed my cabinet secretaries and agency directors to shrink employee count and cut unnecessary contracts.
“I am committed to having fewer state employees at the end of my term than when I took office in 2019,” Stitt said.
The newly formed DOGE-OK has the support of House Speaker Kyle Hilbert.
“Finding government efficiencies with an Oklahoma version of DOGE is a shared priority and will be critical as we seek to tighten our belt fiscally this year. We are all on the same page that we need to ban cell phones in schools with local implementation and, as a father of young kids myself, I applaud the Governor’s continued focus on fatherhood and building up Oklahoma families,” said in a statement after Stitt’s State of the State Address.
Stitt also continued to push Oklahoma as a business-friendly state.
“By being the best state for business, we’re paving the way to be the best state for education, the best state for infrastructure, and the best state for families.
“Rising tides lift all boats,” Stitt said.
That fits in with Senate President Pro Tem Lonnie Paxton’s agenda for his Chamber.
“This session, the Senate looks forward to working alongside the governor and our colleagues in the House to advance policies that will strengthen our workforce, create new opportunities for business investment and make strategic investments in core services. By working together, we can build a stronger, more prosperous Oklahoma for generations to come,” said Paxton.
However, Democrat leaders in the Legislature feel Stitt is trying to re-create what he sees with the Trump Administration and D.C. politics in Oklahoma.
“The Governor’s address did not make me confident that he is prioritizing Oklahomans who are relying on us to find solutions to the financial challenges they face,” said House Minority Leader Cyndi Munson. “He is prioritizing DC-style politics and talking points rather than the overwhelming needs of Oklahomans who have had to go session after session not seeing solutions that work for them.”
Senate Minority Leader Julia Kirt agrees with that assessment.
“We didn’t hear anything new from the governor. Republicans have tried tax cuts for big business. Republicans have tried more mandates on classrooms and have diverted funds to private schools. Republicans have copied the policies from D.C. think tanks and it’s clear we need a change to put Oklahomans first,” said Kirt.
The Oklahoma State Board of Equalization will meet on February 14, 2025, to provide the final certification numbers for the next state appropriated budget. That will be the number used to negotiate a balanced budget by the end of the session in May.
