If things continue as expected, the Oklahoma Legislature will appropriate $9.7 billion for the Fiscal Year 23 state budget. That’s a 9.7% increase over the current spending plan.
Education across the board will receive $4.2 billion. Common education, or K-12 public schools, will receive $3.2 billion, the highest appropriation the Legislature has ever made to public schools. Higher Education will receive $873 million which is a seven percent increase over the current budget.
The budget also funds law enforcement at record levels, fund the effort to eliminate the years-long waiting list to receive disability services from the state, and continues to build the state’s savings accounts.
Something a little different than a tax cut, lawmakers have added an “inflation relief” measure. Individual Oklahoma taxpayers are slated to receive $75 in a one-time rebate in December 2022. The budget also reinstates the 1.25% sales tax exemption on motor vehicle sales. The grocery sales tax cut and other income tax cut measures did not make it into the next budget.
“Thanks to years of fiscal discipline, Republicans have produced yet another increasingly solvent budget that provides historic savings, returns taxpayer money and funds key investments all at once. This budget avoids overspending, helps families fight inflation and positions all Oklahomans for future prosperity, whether in times of opportunity or challenge. On behalf of the House, I appreciate the many contributions of the House, Senate, Governor and people of Oklahoma to this excellent budget,” said House Speaker Charles McCall.
Senate President Pro Tempore Greg Treat agrees and says this budget sets the right priorities for the state.
“This year’s budget agreement reflects that the Oklahoma Legislature prioritizes education, law enforcement and healthcare. It does so in a manner that is fiscally sound. It also acknowledges that Oklahoma families are being hurt by failed federal policies and gives them meaningful relief – in addition to the tax cuts we passed last year. This is all possible because a combination of tough decisions made by this Legislature in 2017 and conservative fiscal restraint in the years since. I’d like to extend my gratitude to my Senate colleagues, our House counterparts, and the Governor for their work on this budget that will pay dividends for years to come,” Treat said.
After delays on Monday, the House and Senate Joint Committees for Appropriations and Budget, or JCAB, began passing the budget measures on Tuesday. Democrats raised questions about some of the spending choices and added that they are trying to keep up because they are only just now seeing the budget language.
Floor action on the budget bills is expected to begin in the Senate Wednesday. The House could take the budget up as soon as Friday.
One of the unknown factors is how Governor Kevin Stitt will come down on the budget agreement. His team was not brought into the negotiations until last week.
The Legislature has until May 27th to finish out this year’s legislative session.
