Stitt signs $12.5B state budget, calling process 'the most transparent in state history'

Following weeks of public debate and arguments over tax cuts, Republican Gov. Kevin Stitt has signed the $12.5 billion budget passed by the state Legislature into law. The measure allocates funds for fiscal year 2025, which begins July 1.

In a media statement announcing his decision, Stitt said the budget, which eliminated the state's portion of the grocery sales tax, gave taxpayers the largest single tax cut in state history.

"This budget authorized state expenditures at a reduced level relative to last year while delivering on strategic investments in infrastructure and efforts to further the Governor’s pro-business, pro-family policies," the governor's statement said.

The centerpiece of a difficult and arduous legislative session, the budget ― detailed in Senate Bill 1125 — earmarks $12.47 billion in state spending, including $20 million for non-formula teacher pay increases and funding for phase two of a tactical training center for the Oklahoma Department of Public Safety. The budget also allocates $20 million to a fund from which the governor can draw money for economic development and related infrastructure to locate a high-impact business in the state. Pay for district judges — but not appellate judges or justices — was increased by 7%, and $3.823 billion was appropriated for the state's common education system.

The budget also includes an appropriation of $18.84 million for the Center for the Advancement of Science and Technology and $7.17 million in funding for the Oklahoma School of Science and Mathematics. In addition, lawmakers set aside $27.6 million for CareerTech to address its waitlist and admit more students; $20 million for an animal diagnostics lab at OSU’s College of Veterinary Medicine; and $1.5 million to support educational initiatives that increase awareness about the Oklahoma City bombing and its impact.

Stitt: budget process something to be proud of

Stitt praised the budget process, calling it "the most transparent budget process in state history."

"That is something to be proud of," the governor's statement said. "Every Oklahoman had the opportunity to have a front row seat to the negotiations that took place and to see how their tax dollars were spent. The state has taken a step forward today, but our work is unfinished. I will continue to fight for more tax cuts and keeping a lid on the growth in government in Oklahoma."

House Speaker Charles McCall, R-Atoka, thanked the governor for signing the bill. "We appreciate Gov. Stitt honoring his commitment to sign and support a strong budget made possible due to the economic environment created by Conservative leadership in the House," McCall said in a statement issued after Stitt signed the budget Wednesday evening.

Under the new budget, McCall said overall spending is down 5.3% compared to last year, while only exercising 89% of overall budget authority. He said the House was "proud to have championed, for a third straight year," a personal income tax cut and a path to zero as future revenues rise, in addition to the repeal of the state's grocery tax. "We appreciate Gov. Stitt’s support of these efforts, as well, and hope to see them prioritized in the future," the speaker said.

Unlike last year, governor signs FY 2025 budget bill

Stitt's signature on this year's budget is far different from the way he handed the FY 2024 budget. Last year, the governor let the budget bill go into effect without his signature. At that time, Stitt said he was concerned the Legislature had spent $12.96 billion dollars in taxpayer money and relied upon one-time revenue to support recurring expenditures that exceed recurring revenues by roughly $220 million dollars.

"They have also drawn down the state’s savings from about $6.2 billion dollars to $4.2 billion dollars. Because this approach is neither sustainable nor fiscally wise, I have not signed House Bill 1004x," the governor said last year. "Nevertheless, subject to objections to the unique process by which the bill made its way to my desk, the bill will become law without signature."

Wednesday evening, the governor praised the speaker and the Senate pro tempore for their work on the budget. "As Speaker McCall and Pro Tem Treat wrap up their final year in office, I want to commend them on their efforts to leave a legacy of transparency. I look forward to working with their successors and expanding on those relationships and the progress made this year."

For his part, Treat — the architect of the Senate's budget transparency initiative ― praised his fellow senators for their work on the budget.

"I am proud the Senate showed true leadership in the budget transparency process and pleased the governor decided to sign it into law, while backing down from a tax cut that would have put the state on an unsustainable financial path for future legislators," Treat said in a media statement. "I’m also proud to have co-authored the largest tax cut in state history in eliminating the state portion of the grocery tax. Once it goes into effect, it will represent more money in the pockets of all 4 million Oklahomans.”

This article originally appeared on Oklahoman: Oklahoma Gov. Stitt signs $12.5 billion budget, praises transparency