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Many moving parts still remain with FY26 state budget
commentary
May 21, 2025
Many moving parts still remain with FY26 state budget
By JOE DORMAN OICA CEO

OKLAHOMA CITY – Gov. Kevin Stitt and legislative leaders have announced an agreement for the key elements to the Fiscal Year 2026 state budget.

The plan for the estimated $12.6 billion budget includes an income tax cut of a quarter percent and consolidation of the lowest income tax brackets. Based on modeling from the Institute for Taxation and Economic Policy, a 0.25% cut to Oklahoma’s personal income tax rate is estimated to reduce collections by $338 million annually. By flattening the bottom three income tax brackets, this is expected to lower the state budget by $87 million annually.

The negotiating parties agreed on key spending priorities, including funds for a new, state-of-the-art veterinary hospital at OSU in Stillwater for $250 million; a world-class pediatric heart hospital at OU in Oklahoma City for $200 million; and funds for various infrastructure investments across the state.

Other items in the budget include the purchase of a private prison in Lawton for $312 million and funding for the Department of Mental Health and Substance Abuse Services so they can make payroll for the rest of this fiscal year ending June 30. There will also be $41.6 million for the Oklahoma National Guard to do needed maintenance and $5 million for state employee maternity leave costs.

“Enhanced tort reform” is included in the agreement, further limiting lawsuits against doctors and some businesses. Other “business- friendly” policies include “Behind the Meter” to allow power generation by large-scale manufacturers and data centers, the establishment of business courts, and expense recovery for utilities.

The agreement also boosts public school funding by $25 million and private school vouchers by $50 million, while raising the ceiling on teacher pay. A pair of programs — for statewide inhaler access and school panic buttons — will be moved out of the State Department of Education into other agencies. The deal also will make the children of teachers eligible for the Oklahoma Higher Learning Access Program scholarships.

Lawmakers are spending $8 million for a partnership between the OSU Medical Authority and St. Francis Hospital to capture federal funding to establish a Level 1 trauma center in Tulsa; currently, the state’s only Level 1 trauma center is in Oklahoma City.

Lawmakers must constitutionally adjourn by 5 p.m. on the final Friday in May. These agreements, along with other bills yet unresolved, must make it to the desk of the governor by then.

Many issues discussed this year, including an increase of $5 per day for traditional foster care to meet the growing costs of the economy – a detriment to recruiting much-needed foster families – will be held over until next year.

Some have called for eliminating the state’s income tax. This would slash an estimated $5.8 billion annually from the current state budget. Obviously, many government services such as public schools, SoonerCare, and highway maintenance would face severe shortages if this were to happen.

Of great concern, state lawmakers still do not know the impact of cuts looming with the upcoming federal budget. In Oklahoma, our state budget includes 43-47% matching federal funds. Early indicators predict that there will likely be between $400-$800 million of federal funds to Oklahoma eliminated. This could require some potentially unpleasant actions.

One is a special session to modify the budget. Governor Stitt would need to call lawmakers back to adjust agency allocations, or lawmakers could try to call themselves back by a two-thirds vote of both the state House of Representatives and Senate. The second option is for agencies to absorb those cuts in the programs funded by federal dollars and reduce services.

There are still many unknowns about what will happen with the federal budget. The Oklahoma Institute for Child Advocacy will keep you informed once more is revealed.

Heavy rains, strong winds blow through Memorial Day Weekend
A: Main, news
Heavy rains, strong winds blow through Memorial Day Weekend
By JERRY FINK MANAGING EDITOR 
May 28, 2025
NWS warns of possible flooding in these locations - Eufaula - Checotah - Canadian - Indianola - Hanna - Stidham - Vivian - Lake Eufaula State Park - Raiford - Arrowhead State Park - Enterprise - Pierc...
Eufaula becoming an international city
A: Main, news
Eufaula becoming an international city
By JERRY FINK MANAGING EDITOR 
May 28, 2025
A couple from Kosov, north of Albania, found their way to Eufaula by way of Texas to open an Italian restaurant, a diner whose cuisine rivals most metropolitan eateries. Sara and Alban Osmanaj have ha...
Acclaimed artist returns to adorn Italian restaurant with mural
A: Main, news
Acclaimed artist returns to adorn Italian restaurant with mural
By JERRY FINK MANAGING EDITOR 
May 28, 2025
She’s back. The internationally acclaimed mural artist who captivated Eufaulans’ imagination five years ago has been invited to paint an encore mural inside the Cucina Italiana Al Lago, at 134 N. Main...
‘Remembering the Fallen’ on Memorial Day
A: Main, news
‘Remembering the Fallen’ on Memorial Day
By LaDonna Rhodes Staff Writer 
May 28, 2025
On May 26, the Disabled American Veterans, McIntosh County Chapter 3, hosted a moving ceremony to commemorate the brave men and women who lost their lives to give others their freedom. The program, “R...
A: Main, news
VA/Tribal Town aid in disability claims
May 28, 2025
The Eufaula-Canadian Tribal Town and U.S. Department of Veterans Affairs will be hosting a PACT ACT: Presumptive Disability Claims Event: Bringing VA Benefits Home Event in Eufaula. The event is June ...
Two charged with killing Eufaulan Ashton Wright
A: Main, news
Two charged with killing Eufaulan Ashton Wright
By JERRY FINK MANAGING EDITOR 
May 28, 2025
MUSKOGEE - Two suspects have been arrested in connection with the March 31 murder of 21-year-old Ashton Wright, a Eufaula resident found shot and left for dead on a Muskogee street. Being held without...
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Blues Hall of Fame weathers the foul weather
A: Main, news
Blues Hall of Fame weathers the foul weather
By LENORE BECHTEL 
May 28, 2025
Saturday’s rainstorm didn’t put a damper on the Oklahoma Blues Hall of Fame celebration and induction ceremonies Saturday in Rentiesville. One band after another took to the stage at the Down Home Blu...
Church celebrates 150th anniversary
news
Church celebrates 150th anniversary
May 28, 2025
The Choate Prairie Baptist Church in Indianola will celebrate its 150th anniversary Sunday, June 1. Services will begin at 10:30 a.m. followed by a Fellowship Meal. It is generally accepted that 1875 ...
Abandoned in OK
commentary, Opinions
Abandoned in OK
May 28, 2025
Imagine being tiny and defenseless and being tossed out like trash on the road where the only shelter you had was the thicket of wild brush poking at your tender pink skin. That was the reality of fiv...
Your voice matters!
commentary, Opinions
Your voice matters!
May 28, 2025
OKLAHOMA CITY – Prior to the Memorial Day weekend, the U.S. House of Representatives passed HR 1, commonly called the “Big, Beautiful Bill” Act. The vote of 215-214 fell almost exactly on a party-line...
Fire grants to help House District 15
commentary, Opinions
Fire grants to help House District 15
By REP. TIM TURNER 
May 28, 2025
I am excited to share that at least eight of the rural fire departments within House District 15 have been awarded grants to purchase new gear ranging from trucks, Jaws of Life and personal protective...
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