Preliminary state budget moves forward with mixed reactions and pending votes

Leadership Reaches Preliminary Budget Agreement

Oklahoma lawmakers have reached a preliminary agreement on the FY 2025-26 state budget, totaling approximately $12.3 billion, but officials note that the deal is not final. On Your Vote Counts, host Scott Mitchell was joined by Senator Paul Rosino and former Representative Jason Dunnington, who emphasized that the budget proposal must still pass through committees and both chambers before reaching the governor’s desk.

Tax Cuts and Major Spending Items Included

The tentative budget agreement includes a 0.25% income tax cut, a key priority for Governor Kevin Stitt. According to Rosino, the state has cut roughly $1 billion in taxes over the past several years, including the grocery tax, franchise tax, and corporate income tax.

Other budget highlights include:

1. Funding for OU’s new Cardiac Hospital for Children
2. Support for OSU’s Veterinary Medicine program
3. Flat budgets for most state agencies, excluding required increases

However, Rosino raised concerns about flat agency funding, especially for departments like Mental Health, where budget needs are still shifting. Lawmakers recently learned the Department of Mental Health may require $30 million, up from an earlier estimate of $27 million.

The Impact on Oklahomans: Mixed Results

While tax cuts are intended to provide relief to residents, Dunnington questioned whether these reductions are solving the state’s deeper issues. He pointed to Oklahoma’s low national rankings in education and healthcare, suggesting that more investment is needed in core services.

“We're moving towards a path to zero on taxes, but what we need to see is, will that actually get us out of the bottom in so many categories?” Dunnington said. “Sure, no one wants to pay more taxes than they should, but we also don't want to watch the headlines every single night and see that we rank 49th in education or that we rank, you know, 42nd or 43rd in healthcare outcomes.”

Federal Policy Changes Could Strain State Budget

The conversation turned to federal policy shifts, particularly concerning potential cuts to SNAP (food stamps) and Medicaid. Rosino noted that if the federal government reduces its share, Oklahoma may need to come up with an additional $800 million to $1 billion in funding for those programs.

“So it's a little bit concerning. Again, this is all just talk," Rosino said. "We haven't seen anything actually in concrete yet, but I think we still need to pay attention to it.”

Dunnington added that while budget talks often focus on plugging holes, the state must begin addressing systemic poverty and education gaps to build long-term solutions.

Positive Economic Developments Bring Optimism

Despite budget concerns, both Dunnington and Senator Rosino noted positive economic developments in Oklahoma. Recent announcements include:

1. A new ammunition plant at MidAmerica Industrial Park
2. A federally supported aluminum smelter project
3. Momentum in the aerospace and space industries
4. Major sporting events, including the upcoming Olympics, Women’s College World Series, and continued growth around the Oklahoma City Thunder

“They help the entire state,” Rosino said. “They sell hotel rooms, restaurants are full, and people come here just for those things.”

Looking Ahead

Though the budget deal is not finalized, lawmakers on both sides agree that it reflects the direction of current leadership. They also acknowledge the need for balance between tax relief and investment in public services.