Governor’s budget plan proposes flat appropriations for most Oklahoma agencies
Feb 03, 2026
Gov. Kevin Stitt’s executive budget spends fewer dollars than last year with most agencies getting no additional funds.
Stitt on Monday unveiled his executive budget, which is a starting point for lawmakers who are expected to spend the next four months crafting a state spending plan.
Stitt
’s budget proposes appropriating nearly $11.4 billion for fiscal year 2027, down from nearly $12.6 billion for the fiscal year 2026, which ends June 30, according to the executive budget summary obtained by Oklahoma Voice on Monday.
Stitt proposes giving the Oklahoma Department of Mental Health and Substance Abuse Services $17 million to implement a consent decree the state entered to resolve a class action lawsuit. The suit was brought by indigent defendants who had been waiting months or even years in county jails to access competency restoration services.
As part of a federal court settlement agreement, the state agreed to improve access to competency restoration, but monitors of the suit have said the state has missed required benchmarks. The state has been hit with several million dollars in fines.
Stitt’s budget also proposes giving the Oklahoma Health Care Authority $250 million in supplemental and one-time appropriations to compensate for a reduction in the Federal Medical Assistance Program Percentages, or rates used to determine the federal government’s share of funding for certain programs.
The dollars would also be used to maintain existing programs and for an additional claims week in fiscal year 2027.
The Health Care Authority administers the state’s Medicaid program, of which $1.4 billion come from state appropriations and the bulk of its budget coming from federal dollars
The agency sought a budget increase of $495 million.
The proposed budget includes $6.75 million for an Oklahoma Highway Patrol trooper academy. DPS had requested funding to host two academies with hopes of graduating 50 troopers from each.
Stitt wants to use $1.57 million to replenish the State Emergency Fund. A panel tapped last year to mitigate the impact on food stamp beneficiaries during a federal government shutdown. The Emergency Fund provides financial help during emergencies, such as disaster recovery.
Stitt’s budget gives the Oklahoma Department of Education an increase of $23.7 million to pay for employee benefits. The budget otherwise largely holds flat public school spending.
Senate Minority Leader, Julia Kirt, D-Oklahoma City, said she was disappointed that Stitt’s budget does not include funding for teacher raises or child care programs or additional dollars for mental health programs.
CareerTech would receive a $1.3 million hike for benefits.
Key agencies that receive a standstill budget include the Oklahoma State Regents for Higher Education, the Oklahoma Department of Corrections, Oklahoma Attorney General, Office of Juvenile Affairs, Department of Veterans Affairs, Department of Health and Department of Human Services.
The Legislature and Stitt’s office would also receive flat budgets.
Senate Appropriations Committee Chairman Chuck Hall, R-Perry, said he and his counterpart in the House will meet Tuesday with Stitt’s team to go over the proposal.
Stitt’s budget proposes giving $20 million to the Quick Action Closing Fund, which is used to lure businesses to the state.
Oklahoma has slightly more than $1.3 billion in its Rainy Day Fund. The Revenue Stabilization Fund contains nearly $449 million.
Lawmakers have until the end of May to adopt the state budget for the upcoming fiscal year.
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