The Latest in Oklahoma: May 16, 2025
A&A Advocates
Oklahoma lawmakers approved a $12.59 billion state budget for Fiscal Year 2026, representing a 0.5% increase from the previous year. The budget includes income tax cuts by eliminating the bottom three brackets and reducing the remaining brackets by a quarter-point. Most state agencies will receive flat funding, including the Oklahoma Department of Mental Health and Substance Abuse Services, which will maintain its $27 million allocation amid an ongoing investigation. The plan also includes $3.5 billion in savings.
Governor Kevin Stitt has issued 39 vetoesduring the 2025 legislative session, the most of any year in his tenure and accounting for 14% of the 253 bills sent to his desk. This surpasses his previous record in both total vetoes and percentage. Among the rejected bills were measures to exempt religious schools from accreditation, reduce federal oversight for a new office addressing Missing and Murdered Indigenous Persons, and classify aggravated DUI as a felony. Stitt said some proposals would expand government power, and he argued that creating an office based on race violates the principle of equal protection under the law.
During recent budget meetings, Oklahoma legislators were informed that the Oklahoma Department of Mental Health and Substance Abuse Services faces a revised shortfall of $30.6 million for Fiscal Year 2025. The previous estimate was $27.4 million, with most of the deficit tied to payroll obligations. The updated figures were presented by State CFO Aaron Morris and CPA David Greenwell to the Legislature’s investigative committee. House Majority Leader Mark Lawson stated that while the focus is currently on addressing the FY25 gap, long-term funding solutions for FY26 are still being discussed.
Governor Kevin Stitt announced a $4 billion investment from Emirates Global Aluminium to establish a new aluminum production facility in Oklahoma. The plant, to be constructed on over 350 acres at the Tulsa Port of Inola, will be the first new primary aluminum production plant built in the United States in 45 years. The project is expected to create 1,000 direct jobs and 1,800 indirect jobs, enhancing Oklahoma’s manufacturing sector.
Looking Ahead
The Joint Committee on Appropriations and Budget (JCAB) is expected to begin meeting on Monday to go through the final details of the budget. The Senate is expected to hear the budget bill on the floor on Tuesday and the House is expected to hear it on Thursday.
Click here to view the approved budget for Fiscal Year 2026.
QUOTE OF THE WEEK
“Our agreement shows the kind of leadership that Oklahomans expect — fiscally responsible, conservative governance,” said Governor Stitt in reference to the Fiscal Year 2026 state budget. “We’re delivering a tax cut for every Oklahoman, investing in critical infrastructure, public safety and education, and making smart, one-time investments that will strengthen Oklahoma for the long haul.”