'Friction is a good thing': Budget agreement reached, Stitt drops tax cut demand for now

OKLAHOMA CITY (KFOR) — State legislators reached a tentative budget agreement Wednesday just a little over a week out from an impending deadline.

The agreement also marked a historic moment in Oklahoma history being the first time all budget meetings were hosted in public. Organizers stated the purpose of the process was to give the public a behind the scenes look at how budget negotiations have taken place.

Both Republican Senate and House majority leaders echoed Wednesday the agreement likely wouldn't have happened without Governor Kevin Stitt agreeing to drop a demand for an income tax cut without vetoing the budget.

The Governor instead made a succinct case Wednesday morning stressing his priorities including $20 for his Quick Action Closing Fund, preserving the state's tribal litigation fund, a salary cap of percentages of judicial pay at 7% for district courts and framework for business courts.

"This does not sound unreasonable," said Senate Majority Leader Greg Treat during the Wednesday summit.

The agreement itself includes a number of pricey expenses including a $25 million increase in public education funding, $350 million for deferred maintenance projects at state properties and $45 million in disaster relief to help tornado-impacted counties.

Other publicly known highlights are listed below and a spokesperson for the House majority leader directed further inquiries from News 4 about the budget to this online portal.

Fiscal Year 2025 Budget Highlights

Education

• $240 million for new engineering and science facilities at OU and OSU
• $27.6 million for CareerTech to address its waitlist and admit more students
• $20 million for animal diagnostics lab at OSU’s College of Veterinary Medicine
• $1.5 million to support educational initiatives that increase awareness about the Oklahoma City bombing and its impact

Health

• $30 million for the Oklahoma Health Care Authority to increase long-term care provider rates
• $30 million expansion for OSU Medical Center in Tulsa
• $18.5 million in additional funding for the Department of Mental Health to address children’s mental health needs
• $15 million additional funding for Choosing Childbirth, to provide services to pregnant women
• $45.5 million to increase reimbursement rates for developmental disability service providers
• $3 million in new funding to get roughly 300 additional individuals developmental disability services

Public Safety

• $74 million to complete the Department of Public Safety’s new training facility in Lincoln County
• $27.5 million for new OSBI headquarters building
• $10 million in additional funding to help victims of domestic violence
• $2.85 million for OETA to replace 11 rural transmitters to ensure severe weather and public safety alerts reach all parts of the state
• $2.5 million for DPS academy to train more Highway Patrol troopers

Miscellaneous

• $308 million to cover the cost of eliminating the state portion of the grocery tax
• $20 million for the Governor’s Quick Action Closing Fund

While some of the Governor's asks made the cut, he stopped short of telling media partners Wednesday he wouldn't call a special session to address the income tax cut.

"I'm not saying we won't call a special session, but, you know, now we need to just be happy about this," said Stitt.

The Governor did praise the $20 million Quick Action Closing Fund though, allowing the state to allocate grant money to attract or keep businesses in Oklahoma.

"We want Oklahoma to be the most business friendly state to be the corporate headquarters capital world."

Legislative leaders made notable comments during Wednesday's agreement about some of the tension leading up to the decision. Last week senators walked out of negotiations after House Speaker McCall refused to sign onto a pre-condition to override any of the vetoes the Governor may have made.

Wednesday's meeting saw tempers noticeably simmer with smiling faces and handshakes closing out the afternoon.

"Friction is a good thing," said Pro Tem Treat. "It's an ugly process at times."

The next steps are drafting the agreement into legislation for the House and Senate to vote on.

News 4 received the following statements from several key majority and minority leaders related to the budget agreement:

“I am proud of how this process played out in a transparent manner,” Pro Tem Treat said. “It has been contentious, stressful and at times combative. But it is the legislative process that has historically been behind closed doors, never available to public view. For the first time, Oklahomans were able to see how these meetings happen behind the scenes. I appreciate my colleagues in the Senate and House who participated in this new process and my hope is that they will build upon it in the future and continue improving this moving forward. I especially want to thank Appropriations Chairman Sen. Chuck Hall, Appropriations Vice Chairman Sen. Paul Rosino and Floor Leader Sen. Greg McCortney, as well as our staff who have put in hours of work, late nights and helped get this to where we are today. Oklahomans deserve to know how their money is being spent and where we prioritize funding. The governor committed today that he will sign this budget and I look forward to getting it to his desk.”

Senate Pro Tem Greg Treat

“Throughout the budget process I have empowered the House negotiating team to negotiate a budget on behalf of our body and the Oklahomans we represent. Today’s budget agreement with the Senate is the culmination of those robust negotiations, and I want to applaud the hard work of our House negotiating team and budget staff for getting this across the finish line. The House showed our commitment to transparency and good faith throughout the process, and we are thankful that a deal was reached.”

House of Representatives Speaker Charles McCall

“While we appreciate this agreement should negate the need for yet another costly special session, we are concerned the budget doesn’t address critical needs facing citizens in every district of the state. This is not a bipartisan budget, because it misses important opportunities to invest more in our schools, health and mental health, and other programs that would have improved the lives of working Oklahomans and their families.” 

Senate Democratic Leader Kay Floyd

“By keeping the Democratic Leaders out of the public budget discussion process, issues important to Oklahomans have not been prioritized, such as affordable and accessible child care, addressing hunger by providing free school lunches to students across our state, and investing in health care to ensure people can access physicians and the care they need. Instead, we have observed Republican infighting, which unnecessarily prolonged the budget process. Now the process is being rushed, which does not give legislators, stakeholders, or the public enough time to fully understand the budget and know how our tax dollars will be spent. In the future, we need to work together on bipartisan solutions that address real challenges in our state and benefit all Oklahoma families.”

House Democratic Leader Cyndi Munson