State budget agreement reached Republicans prioritize savings, inflation relief, police, economy & more

OKLAHOMA CITY – Historic state savings deposits and more money returned to taxpayers highlight the Fiscal Year 2023 state budget agreement, which also funds law enforcement at record levels, eliminates the years-long developmentally disabled services waiting list, fights federal overreach, and makes generational investments in economic development.

Legislative leaders on Tuesday announced plans to send the agreement, which continues to fund education at the highest levels in state history, to Gov. Kevin Stitt this week for approval.

COMMENTARY

"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." – House Speaker Charles McCall, R-Atoka

"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." – Senate President Pro Tempore Greg Treat, R-Oklahoma City

"From last fall until now, a transparent budget process featuring hundreds of public hearings and input from the elected representatives of every Oklahoman has yet again produced a strategic spending plan to meet Oklahoma's core needs and seize timely opportunities. I am particularly proud enough money will be appropriated to end the waiting list for services for the developmentally disabled, an achievement I have fought for every year since being elected. This budget will finally treat these Oklahomans with the dignity and care they deserve for a truly pro-quality of life achievement for the most vulnerable among us." – House Appropriations & Budget Chairman Kevin Wallace, R-Wellston

“This budget represents a significant investment in our state and is the result of a bold vision to move Oklahoma forward. I’m proud we were able to deliver appropriate funding for our core services to meet the needs of our people, while not sacrificing one-time funding on recurring needs.” – Senate Appropriations Chairman Roger Thompson, R-Okemah

HIGHLIGHTS

Savings: Continuing a successful practice from recent years, the Legislature did not spend its full appropriations authority in order to reserve more funds for savings and avoid overspending. Thanks to this practice and record state revenues, savings are projected to increase to $2.6 billion next year – the highest level in state history.

Inflation relief: To help Oklahomans offset historic inflation making everyday life more expensive, the budget returns $181 million to taxpayers in the form of one-time rebates of $75 for individuals and $150 for families, to be paid in December. It also makes vehicle purchases more affordable beginning July 1, 2022 by reinstating the 1.25% sales tax exemption on motor vehicle sales that was rescinded in 2017, returning an estimated $188 million to taxpayers.

Funding the police: The budget grants 30% pay raises to Oklahoma Highway Patrol troopers, valued at $14.2 million, and Oklahoma State Bureau of Investigation agents, valued at $5.3 million. The budget also increases funding for law enforcement training and academies, fighting crimes against children and officer mental health support.

Fighting federal overreach: The budget sends another $10 million, on top of $10 million appropriated last session, to the Office of the Attorney General to fight federal overreach by asserting Oklahoma's powers as a state under the U.S. Constitution to overturn or block unconstitutional federal policies.

Developmentally disabled waiting list: For the first time in state history, sufficient funding to eliminate the developmentally disabled waiting list at the Department of Human Services is contained in the budget. The $32.5 million increase for the waiting list – the largest single-year increase in state history – will provide critical services to more than 5,000 developmentally disabled Oklahomans who have requested but are not yet receiving state services.

Economic development: The budget reserves nearly $1 billion for economic development contingent upon Oklahoma being awarded Project Ocean, which would receive nearly $700 million under the Large-scale Economic Activity Development Act (LEAD Act) while another $250 million would retrofit areas in Oklahoma such as industrial parks to help recruit similar economic development megaprojects in the future.

KEY FACTS

The FY 2023 legislatively-appropriated budget is $9.7 billion, which is 9.7%, or $858.9 million, more than FY 2022.

The largest area of the budget continues to be education, at $4.2 billion, or 44%. In the agreement, public K-12 schools continue to be funded at the highest level in state history, $3.2 billion, on top of billions of dollars in federal pandemic aid for schools and surging local property tax revenues in many school districts.

Higher education receives $873 million, including a $60.6 million, or 7%, state appropriation increase, the largest increase to colleges and universities in recent history.

Health and human services is the second largest area of investment, at $2.8 billion, or 29%, of the appropriated budget, followed by transportation at 8% and public safety at 7%.

The legislatively-appropriated budget represents about a third of the total state operating budget, which also includes off-the-top tax apportionments to specific purposes, federal funding and more.

PROCESS

The legislatively-appropriated budget takes months to prepare. It is based on input received throughout dozens of public legislative budget hearings from fall through spring, the governor's executive budget proposal introduced publicly during the State of the State speech at the beginning of session, hundreds of publicly-available agency budget requests, and the requests and input of all elected legislators, who each serve on standing budget committees and subcommittees.

The budget agreement is contained in Senate Bill 1040, the general appropriations bill, and several companion bills to be introduced in the Joint Committee on Appropriations & Budget (JCAB) this week.

After JCAB hearings, budget bills can be heard in chambers of origin the next day and opposite chambers two days later.

A summary of the general appropriations bill is available here.

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Contact: John Estus
Office of House Speaker Charles McCall
Capitol: (405) 557-7439
Cell: (405) 706-0084

Contact: Jeff Peters
Office of President Pro Tempore Greg Treat
Capitol: (405) 521-5632