OKLAHOMA CITY – Oklahoma’s Republican-controlled Legislature signed off on a budget deal last week that increases funding for the state’s higher education system, earmarks millions to reduce the backlog of people on the disability waiting list, increases the pay of many state employees and sends many taxpayers a $75 tax rebate check.
The election-year budget deal, which was cobbled together last week, allocates $9.8 billion in state spending, an increase of more than $858 million from last year. The measure was sent to Gov. Kevin Stitt last Friday.
House Speaker Charles McCall (R-Atoka) called the deal “a budget that provides historic savings and returns taxpayer money.”
“Thanks to years of fiscal discipline, Republicans have produced yet another increasingly solvent budget that provides historic savings, returns taxpayer money and funds key investments all at once,” McCall said in a media statement. “This budget avoids overspending, helps families fight inflation and positions all Oklahomans for future prosperity, whether in times of opportunity or challenge.”
While the deal increases spending for the higher education system by more than 7%, it only increases spending for the common education – K through 12 – system by $16.9 million or less than one-half of 1%. The career-tech system will see its budget increase by about 2.45%, about $3.4 million.
Democrats criticized the bill, saying that the small increase for public schools falls short of their needs and any additional money won’t make it to public school district.
“Due to global inflation caused by the pandemic, operation costs are at an all-time high. If we can give an international, multibillion-dollar company $700 million, surely, we can find a way to help our community school districts manage rising costs,” state Rep. Melissa Provenzano, a Democrat from Tulsa, said.
Though education funding makes up more than half of state spending, last week’s budget deal also includes some targeted pay increases for public employees, including $2.5 million for public health workers at the State Department of Health, $500,000 to increase salaries for dispatchers with the Department of Public Safety, $361,322 for CLEET certified park rangers and increases for the state’s court bailiffs and court reporters.
The measure also allocates $14 million to increase the pay of state troopers and earmarks $690 million in “performance-based incentives” for an unnamed company to build an electric vehicle battery plant in Pryor.
Some published reports have indicated the unnamed company is probably Panasonic, which is looking for a site for a new manufacturing facility.
The budget deal eliminates the sales tax – currently 1.25% – on all vehicles and includes a curiously-timed tax rebate for taxpayers.
That plan, which is expected to cost about $181 million, will mail $75 tax rebate checks to all Oklahomans who were single tax filers and checks of $150 to all married couples or others who filed joint tax returns. The checks will be mailed in December, just about a month after the 2022 election.
Senate Pro Tempore Greg Treat (R-Oklahoma City) said the budget deal “gives meaningful relief” and tax cuts to state families. “This is all possible because a combination of tough decisions made by this Legislature in 2017 and conservative fiscal restraint in the years since,” he said.
In addition to making a political statement – such as the $10 million earmarked to the Attorney General’s office to “fight federal overreach” – the Legislature also allocated $32.5 million to provide more services more than 5,000 Oklahomans with developmental disabilities who have requested services but have not received them and have been placed on a waiting list.
Sen. Paul Rosino, vice chairman of the Senate’s Health and Human Services Committee, said ending the Department of Disability Services’ waiting list will likely prove to be a significant accomplishment by lawmakers.
“This accomplishment does not represent the end of efforts to serve this vulnerable population, but the beginning. Having ended the waiting list, we will refocus our efforts on ensuring that Oklahomans with developmental disabilities have access to resources that help them thrive as individuals and members of their communities indefinitely,” he said.
The deal allocates less money than was certified by the state Board of Equalization. In February, the board certified $10.5 billion – including $1.3 billion in one-time federal funds – for lawmakers to spend.
The remaining $700 million is expected to go to the state’s Constitutional Reserve Fund, also known as the Rainy Day Fund. Though representatives of the Governor’s office were included in the budget negotiations, as of last Saturday Stitt had not indicated whether he would sign the bill.
The Second Regular Session of the 58th Oklahoma Legislature ends Friday, May 27.