Gov. Kevin Stitt and Republican leaders from the state Legislature announced a budget agreement last week. The Fiscal Year 27 (FY27) budget pro‑posal totals $12.8 billion, an increase of 1.52% or nearly $200 million over the current fiscal year’s budget.
This amount is a fraction of total spending, much of which comes from federal matching dollars and “off the top” funding that is dedicated to specific programs and not left up to lawmakers to allocate. No across-the-board cuts happened to state agen‑cies, a fear many had this year.
The Oklahoma Institute for Child Advocacy is especially pleased that an additional $5 million is going toward a plan to allow foster children to re‑ceive state benefits until the age of 21, raising that age from the current age of 18 years old. This is an effort we have long supported. Special thanks go to Senate President Pro Tempore Lonnie Paxton for leading this initiative.
The state will see increased funding to the state Department of Education by $208.7 million, which includes almost $80 million for reading and math programs, and a $2,000 across-the-board teacher pay raise, totaling $85 million, along with $27.3 million to fund health insurance increases for teachers.
Support personnel are not included in this pay raise; school districts would need to find the money if they choose to give raises to all school employees. Also, there is no additional funding budgeted to add days to the public-school year calendar, a proposal which might occur for the upcoming school year.
There is also a $25 million increase to the Pa‑rental Choice Tax Credit, going from $250 million to $275 million, to pay private school tuition for those who qualify.
For childcare teacher recruitment and retention, $4.56 million was included, but this still leaves a large gap for anticipated need. The state is facing with closures of private facilities due to unsubsi‑dized coverage being too costly and the loss of fed‑eral subsidies starting this month will hurt many. I hope this can further be addressed prior to ad‑journment.
The budget allocates $15 million to the Depart‑ment of Commerce for the 2028 Olympics as Oklahoma City will host softball and canoe slalom and kayak events, making it the only city outside California to host events.
Further, $6.75 million will fund an Oklahoma Highway Trooper Academy class; $200 million will go to the Taxpayer’s Endowment Fund Trust, reportedly to allow the state to invest in “unspeci‑fied future projects”; $12.5 million for “DREAM” savings accounts for Oklahoma children; and more than $3 million to expand Dolly Parton Imagination Libraries across the state and to im‑plement the Just Right Readers phonics education program.
Additionally, $3.7 million will be allocated to the Oklahoma Conservation Commission for “critical dam repairs” across the state, a life-saving move.
Other increases in the proposed budget include $38.9 million to the Department of Human Ser‑vices for its Advantage Waiver Program, and $25.5 million to Human Services for Supplemental Nu‑trition Assistance Programs (SNAP). The budget increases funding for the Department of Mental Health, with $49 million coming to stabilize the current budget and an additional $49 million for FY27, along with $30.1 million to implement a court-ordered competency restoration agreement. The Oklahoma Healthcare Authority gets an additional $250 million support for increased Medicaid utilization.
For state employees, lawmakers will allocate $15.2 million to increase longevity pay – a bonus provided based on years of service – in hopes of keeping up with competition with the private sector. Those enrolled in public pension systems would also receive cost of living adjustments ranging from 3% to 6% depending on a retiree’s time spent working, including teachers, firefighters, law enforcement personnel and state employees. Retirees’ monthly payments would increase 3% if they have been retired between 10 and 19 years or 6 percent if they have been retired at least 20 years.
The complete budget proposal will be carried through the process by the two budget chairmen, Sen. Chuck Hall and Rep. Trey Caldwell this week. We will keep you posted regarding what happens.
