Oklahoma

Oklahoma

Budget Links 

FY2026 (proposed)
FY2025 (enacted)
FY2024 (enacted)
FY2023 (enacted)
FY2022 (enacted)
FY2021 (enacted)

Proposed Budget - Fiscal Year 2026

On February 3, Oklahoma Governor Kevin Stitt released his budget proposal for fiscal 2026. The governor’s recommended budget totals $11.17 billion for fiscal 2026 which is a 10.4 percent decrease, or $1.3 billion, from fiscal 2025. Agency appropriations for fiscal 2026 are recommended at $11.09 billion which is a 3.0 percent decrease, or $343 million, from fiscal 2025. Total revenue for fiscal 2026 is projected at $12.29 billion with recurring revenues projected at $11.09 billion and one-time revenues projected at $1.18 billion. For fiscal 2026, the expenditure authority for the certified general revenue fund is projected at $7.99 billion, a decrease of 0.72 percent from fiscal 2025 authorized expenditures. Total reserves and unspent cash at the end of fiscal 2026 are projected at $3.43 billion. This includes a Constitutional Reserve Fund (Rainy Day Fund) balance of $1.37 billion, a Revenue Stabilization Fund balance of $663 million, and General Revenue Cash and Unspent Authorized funds of $1.40 billion.

Proposed Budget Highlights 

The budget focuses on the governor’s priorities of being the best state for business, creating pathways from classrooms to careers, promoting Oklahoma around the country and around the world, and protecting the Oklahoma way of life. Recommendations include the following:

Recurring Revenues

• Proposes reducing the individual income tax rate for the tax year beginning January 1, 2026, by 0.50 percent.
• Proposes reducing the corporate income tax rate for the tax year beginning January 1, 2026, by 0.50 percent.
• Supports removing the cap on the amount that can be spent on the Parental Choice Tax Credit.
• Proposes the Oklahoma Tax Commission administer a tax amnesty program.
• Increases recurring revenue based on historical past practice of sweeping funds from the Unclaimed Property Fund, Oklahoma Medical Marijuana Authority funds, Secretary of State Revolving Fund, and the Insurance Department Revolving Fund.
• Funds the first and subsequent years of operation for an agency to support the Business Courts. Recommends specialized business courts to streamline the legal process and make Oklahoma a top ten state for doing business.
• Provides funding for nursing home provider rate increases at Oklahoma Health Care Authority.
• Funds provider rate increases at Oklahoma Human Services.
• Includes funding of the Oklahoma Higher Learning Access Program (OHLAP) fund as an expenditure of the Legislature.

Modernization and Efficiency Initiatives

• Proposes the creation of the Revenue Stabilization Fund 2.0 by making the fund an invested asset to use its earnings to stabilize the budget rather than depleting the principal.
• Recommends the Legislature evaluate the scope of the newly created Oklahoma Capital Asset Maintenance Preservation (OCAMP) fund and look at consolidating it with the Long-Range Capital Planning Commission.

Supplemental and One-time Proposals

• Directs funds from excess cash into 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.

Proposed Budget Information
Fiscal Year 2026 Budget Proposal 

Revenue Forecast – December 2024