By FOX23.com News Staff
OKLAHOMA CITY — The governor and lawmakers in the Oklahoma House and Senate announced they’ve reached an agreement on the budget for the 2027 Fiscal Year, marking the earliest a budget deal has ever been reached in state history.
Lawmakers said the FY 2027 budget focuses on providing funding for education and vital state agencies the public relies on.
Specifically, the budget includes $27.3 million dedicated to funding health insurance increases for teachers, $80 million dedicated to supporting reading and math initiatives and $85 million dedicated to teacher pay raises.
The budget also increased funding for several state agencies.
The Department of Mental Health received increased funding and the Oklahoma Healthcare Authority received funding to go toward increased Medicaid utilization.
The Department of Human Services also was given more funding to help with their Advantage waiver, the changes made to the SNAP program and child care teacher recruitment and retention.
“Even in a challenging fiscal environment, our priority has been protecting core services for Oklahomans while maintaining a responsible approach to taxpayer dollars,” said House Speaker Kyle Hilbert (R-Bristow). “This early agreement is the result of leaders coming to the table prepared to do the work.”
Senate Pro Tem Lonnie Paxton said lawmakers came together to create a budget that addresses the issues concerning Oklahomans across the state.
“This budget is the result of a collaborative, good-faith effort between the Senate, House and Governor’s Office to put Oklahomans first. By holding our state agencies harmless, we are ensuring that the core services our citizens rely on, from public safety to infrastructure, remain fully funded and reliable. At the same time, we are making historic, targeted investment in our future. This plan provides our teachers with a much-needed pay raise to keep Oklahoma competitive, ensures our students benefit from more instructional days in the classroom and honors our commitment to retirees through a critical cost-of-living adjustment. I want to thank everyone involved for the tireless effort and dedication they have shown in crafting a responsible, forward-looking budget that sets Oklahoma up for long-term success.”
Hilbert said the legislature also made it a priority to provide oversight on state agency spending and how taxpayer dollars are being used.
“As legislators, our job is not simply to approve budgets but to provide meaningful oversight of the agencies entrusted with taxpayer resources. That means digging into the details, asking hard questions and examining every single line in an agency’s budget. Oklahomans expect us to ensure their tax dollars are spent wisely, and that work requires diligence and accountability.”
Additional details on the FY 2027 budget can be found on the Oklahoma House’s website here and the Oklahoma Senate’s website here.
Following the announcement, lawmakers across Oklahoma have provided statements responding to the FY 2027 budget.
Governor Stitt released the following statement about the budget, specifically addressing the establishment of a Taxpayer Endowment Fund.
“I am grateful to leaders in the Senate and House for their work on this budget deal and for their commitment to fiscally responsible reforms that will put our state in an even better position. This agreement reflects the important priorities for Oklahoma while keeping an eye on the horizon and planning for the future needs of our state.
In this budget, we cement my top priority as governor: building and protecting Oklahoma’s savings. When I took office in 2019, our Rainy-Day Fund was depleted. Since then, we have built the largest savings in state history to help us weather tough times, keep core services strong and protect taxpayers from sudden tax hikes.
This year, we are taking the next big step. The new Oklahoma Taxpayer Endowment Fund will set aside $200 million from our savings and create a permanent investment fund—Oklahoma’s first sovereign wealth fund. Over the next decade, this fund will generate a new, reliable revenue stream to safeguard core services and help bolster Oklahoma’s path to eliminating the state income tax.
Throughout my administration, I have also taken great pride in our historic investments made in education. Backed by future reforms and guardrails, this budget will build on that progress. It will pave the way for the third teacher pay raise since I entered office, while further securing students’ education freedom to attend the school that best meets their learning needs.”
House Appropriations and Budget Chairman Trey Caldwell (R-Faxon) and Vice Chairman John Kane (R-Bartlesville) released the following joint statement about the budget:
“This budget reflects months of responsible planning. Even in a year when revenues are tighter, we remained focused on protecting essential services while identifying strategic investments that strengthen our state. By working closely with our Senate counterparts and the Governor’s office, we were able to produce a budget that keeps Oklahoma on stable financial footing.”
Senate Appropriations Chairman Chuck Hall (R-Perry) released the following statement:
“Every dollar in this budget reflects the needs and priorities of Oklahomans. This spending plan makes a significant investment in public education and provides pay raises for our hardworking teachers. It supports the dedicated public servants who show up every day to serve our state and gives retirees an overdue cost-of-living adjustment after years of high inflation. By investing in the Oklahomans who are the backbone of this state, we’re building a brighter future for Oklahoma. I’m also proud that this budget is a fiscally responsible proposal that protects core government services and does right by the taxpayers who fund our state government.”
State Superintendent Lindel Fields released the following statement addressing the funding dedicated to education:
“We are excited about today’s announcement and appreciate the investment in Oklahoma’s public schools. Increasing teacher pay, continued security funding and the focus on literacy align with our priorities at OSDE.
We are grateful to the Governor, Senate and House leadership for their collaborative approach in working with OSDE officials to make education a priority in our state.”
House Democratic Leader Cyndi Munson (D-Oklahoma City) also commented on the budget deal, stating she believes it’s irresponsible to finalize it so early.
“I don’t see how we can, in good conscience, celebrate finalizing a budget deal this early when many Oklahomans did not get a seat at the table to voice their needs. Republican leaders are touting record savings to protect future core services, but we have present day core services that need investments today. We have Oklahomans who need help today. Our health care outcomes are among the worst in the nation, and yet Republican leaders are advocating for potentially removing 200,000 Oklahomans off of Medicaid.
This budget continues to put public dollars in private schools without any transparency or oversight. While I am grateful our teachers are getting a much needed pay raise, $2,000 still does not make us competitive in the region and we continue to leave behind support staff. As we discuss literacy and math outcomes, any implementation in our schools should be fully funded, otherwise it is simply an unfunded mandate.
Only a handful of Members in both the House and the Senate have been included in budget negotiations, ignoring the requests and concerns of thousands of Oklahomans who deserve representation in these meetings. We are all learning of this budget deal alongside every Oklahoman—and it’s precisely why we don’t see their needs reflected in this budget, especially as federal cuts are looming and made.
There is no real effort to provide tax relief to help working Oklahomans. When over 50% of working Oklahomans are working more than one job to be able to afford basic necessities, we shouldn’t be hoarding tax dollars for pet projects, we should be helping families—including raising the minimum wage.
We were all elected to do a job now to protect and help our constituents, and we have plenty of time to do it.”
Oklahoma Senate Democratic Leader Julia Kirt (D-Oklahoma City) released the following statement:
“What we heard did not address the fundamental challenges Oklahomans face every day. We heard about cutting back services that help people work and support their families. This would mean our co-workers are choosing to spend money on crisis not on prevention, and that is the kind of budget I see so far.”
Oklahoma Senate Democratic Assistant Leader Carri Hicks (D-Oklahoma City) released the following statement:
“Asking teachers to do more for students with less is not going to move the needle for kids.”
