Oklahoma – A negotiated budget agreement released by leadership in the Oklahoma State Legislature was met with support from Governor Kevin Stitt, who said the plan reflected a continued focus on fiscal restraint, long-term savings, and increased investment in education.
The agreement established a framework for several of the governor’s key priorities, including the creation of a Taxpayer Endowment Trust Fund designed to secure and grow state savings while supporting core government services in the future.
The governor said he appreciated the work of legislative leaders in reaching the deal and emphasized the importance of maintaining responsible financial policies. He noted that the agreement aligned with the state’s priorities while also planning ahead for future needs.
Stitt pointed to savings as a central focus of his administration. He said that when he took office in 2019, Oklahoma’s Rainy-Day Fund had been depleted, and since then, the state had built what he described as the largest savings in its history. According to the governor, those reserves have strengthened core services and helped protect taxpayers from unexpected tax increases.
As part of the new agreement, the state will establish the Oklahoma Taxpayer Endowment Fund, initially setting aside $200 million from existing savings. The fund will function as a long-term investment vehicle, similar to a sovereign wealth fund, and is expected to generate a stable revenue stream over the next decade. The governor said the initiative would support essential services while contributing to the state’s long-term goal of eliminating the income tax.
Education funding also remained a major component of the agreement. Stitt highlighted what he described as historic investments in education during his time in office and said the new budget would continue that progress. The plan is expected to pave the way for a third teacher pay raise under his administration while also reinforcing policies that expand school choice for students and families.
The agreement now sets the stage for further legislative action as state leaders move toward finalizing the budget.
