Oklahoma Legislature Reaches Agreement on $12.59 Billion FY 2026 Budget

Oklahoma lawmakers have agreed on a $12.59 billion budget deal for the upcoming fiscal year, with Governor Kevin Stitt unveiling the plan as a key step towards making the state more business-friendly and investing in critical infrastructure. The agreement includes a quarter-point income tax reduction and a trigger, with the bottom three tax brackets being eliminated. A significant portion of the budget, $3.98 billion, will be allocated to the State Department of Education.

Key Takeaways:

The budget includes a quarter-point income tax cut, with the bottom three tax brackets being eliminated.
The state savings account will be reduced from $5 billion to $3.5 billion.
$200 million will be invested in the OU pediatric heart hospital in Oklahoma City.
$250 million will be allocated for a state-of-the-art veterinary hospital at Oklahoma State University in Stillwater.
$312 million will be used to purchase the Lawton Correctional and Rehabilitative Facility from the GEO Group.
$27 million will be earmarked for a FY 2025 supplemental for the Oklahoma Department of Mental Health and Substance Abuse Services.
Education will receive the largest appropriation at $3.98 billion for FY 2026.

Statistics:

$12.59 billion: The total budget deal for FY 2026.
$200 million: Investment in the OU pediatric heart hospital.
$250 million: Allocation for a state-of-the-art veterinary hospital at Oklahoma State University.
$312 million: Purchase price of the Lawton Correctional and Rehabilitative Facility.
$27 million: FY 2025 supplemental for the Oklahoma Department of Mental Health and Substance Abuse Services.
$3.98 billion: Largest appropriation for education in FY 2026.

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