Oklahoma

Oklahoma

Budget Cycle
Annual  

Governor Submits Budget
February
Fiscal Year Begins
July 1 

Governor Signs Budget 
May/June

Budget Links 

FY2025 (enacted)
FY2025 (proposed)
FY2024 (enacted)
FY2023 (enacted)
FY2022 (enacted)
FY2021 (enacted)
FY2020 (enacted)



Enacted Budget – Fiscal Year 2025

On June 12, Oklahoma Governor Kevin Stitt signed the fiscal 2025 budget bill into law. The total budget, which includes the general appropriations bill and other smaller bills, authorizes $12.48 billion in spending, a decrease of $107 million, or 0.9 percent, from fiscal 2024. Certified general fund revenue expenditures total $8.1 billion, which is a 7.1 percent increase from fiscal 2024. Total revenues for fiscal 2024 are projected at $13.56 billion, an increase of $302 million, or 2.3 percent, from fiscal 2024. 

Highlights of the fiscal 2024 budget include delivering tax relief for all Oklahomans, ensuring recurring expenditures are in line with recurring revenues, and making targeted, strategic one-time investments whiles preserving Oklahoma’s saving levels. The budget eliminates the 4.5 percent state sales tax on groceries; allocates $350 million for the new Oklahoma Capital Assets Maintenance and Protection fund to cover deferred maintenance at state properties, state parks, and public colleges and universities; provides $240 million for new engineering and science facilities at the University of Oklahoma and Oklahoma State University; and provides $45 million in disaster relief to help tornado-impacted communities. 

Proposed Budget - Fiscal Year 2025

On February 8, Oklahoma Governor Kevin Stitt released his recommended budget for fiscal 2025. The governor’s recommended budget totals $11.84 billion for fiscal 2025 which is an 8.7 percent decrease, or $1.1 billion, from fiscal 2024. Agency appropriations for fiscal 2025 are recommended at $10.76 billion which is a 5.2 percent decrease, or $586 million, from fiscal 2024. Total revenue for fiscal 2025 is projected at $13.87 billion with recurring revenues projected at $11.04 billion and one-time revenues projected at $2.83 billion. For fiscal 2025, the expenditure authority for the certified general revenue fund is projected at $8.3 billion, an increase of 10.3 percent over fiscal 2024 authorized expenditures. Total reserves and unspent cash at the end of fiscal 2025 are projected at $4.21 billion. This includes a Constitutional Reserve Fund (Rainy Day Fund) balance of $1.27 billion, a Revenue Stabilization Fund balance of $1.53 billion, and General Revenue Cash and Unspent Authorized funds of $1.41 billion. 


Proposed Budget Highlights 

The budget focuses on the four governor’s priorities of defending the taxpayer dollar, protecting Oklahomans, modernizing government, and promoting Oklahoma. Recommendations include the following: 

Recurring Revenue

  • Proposes reducing the individual income tax rate for the tax year beginning January 1, 2025, by 0.25 percent at a cost of $96.4 million in fiscal year 2025. 
  • Estimates a deposit into the Revenue Stabilization Fund of $80.6 million. 
  • Increases recurring revenue by $41.8 million based on historical past practice of sweeping funds from the Unclaimed Property Fund, Secretary of State Revolving Fun, and the Insurance Department Revolving Fund.
  • Reflects sustained landmark investments in education. 
  • Reflects a full year impact of tax policies enacted during the 2023 legislative session including the Parental Choice Tax Credit, a tax credit for caregivers, elimination of the franchise tax, and elimination of the marriage penalty. 

Supplemental and One-time Proposals

  • Directs $1.0 billion in accumulated, unspent General Revenue Funds from prior years to the Revenue Stabilization Fund. 
  • Proposes authorizing $80.5 million from excess cash in the Education Reform Revolving Fund to fund the supplemental appropriation due to the shortage in the Ad Valorem Reimbursement Fund that goes to public schools.