The Latest in Oklahoma: May 23, 2025
A&A Advocates
In the final weeks of Oklahoma’s legislative session, Senate leaders prioritized tort reform and workers’ compensation changes, making them central to the Fiscal Year 2026 budget negotiations. Senate President Pro Tempore Lonnie Paxton emphasized these reforms as essential for signaling that Oklahoma is open for business. The reform package includes SB 1168, which updates the Governmental Tort Claims Act by increasing claim caps and tying future increases to the Consumer Price Index; SB 453, which introduces expedited processes for certain tort cases and sets caps on non-economic damages; and SB 642, which allows general contractors to pay workers’ compensation insurance for subcontractors and increases weekly disability payments.
The Oklahoma State Senate passed a $12.59 billion budget for fiscal year 2026 with a 27–19 vote, marking a 0.56% increase from the previous year. The budget includes a 0.25% income tax cut, projected to save the average Oklahoman about $150 annually. Education funding will rise by 2.84% to $5.76 billion, while allocations for public health and human services will also see increases. Conversely, funding for transportation and natural resources will decrease by 5.36% and 22.73%, respectively. Governor Kevin Stitt now has five legislative days to take action on the bill.
The U.S. Supreme Court’s 4-4 deadlock on May 22, 2025, effectively upheld the Oklahoma Supreme Court’s decision to block the establishment of St. Isidore of Seville Catholic Virtual School, which would have been the nation’s first publicly funded religious charter school. Reactions were mixed: Oklahoma Governor Kevin Stitt and State Superintendent Ryan Walters criticized the decision as discriminatory against religious institutions, while Attorney General Gentner Drummond praised it as a victory for constitutional principles.
Oklahoma State Superintendent Ryan Walters has advised lawmakers to prioritize tax cuts over increasing education funding. He emphasized the need for fiscal responsibility and suggested that reducing taxes would benefit the state’s economy. Walters’ stance aligns with Governor Kevin Stitt’s proposal to cut the income tax by half a percentage point and eventually eliminate it entirely. This approach has sparked discussions among legislators about balancing tax reductions with the needs of public education.
Looking Ahead
The senate passed the FY2026 general appropriations bill, HB2766, along with the tax cut bill, HB2764, on Thursday. The bills now go to Governor Stitt for his consideration.
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QUOTE OF THE WEEK
“There’s some great bills that are going to be coming across the finish line here on workers’ comp and tort reform as well,” said Senate President Pro Tempore Lonnie Paxton regarding the Senate’s negotiations on the 2026 budget. “We’re signaling to the world that Oklahoma is open for business.”