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Oklahoma House includes income tax cut in released budget plan; Senate remains opposed

House Appropriations and Budget Chair Kevin Wallace, R–Wellston, presented the new House Fiscal Transparency Portal during an April 16 press conference on his chamber's FY25 budget plan at the Oklahoma State Capitol.
Lionel Ramos
House Appropriations and Budget Chair Kevin Wallace, R–Wellston, presented the new House Fiscal Transparency Portal during an April 16 press conference on his chamber's FY25 budget plan at the Oklahoma State Capitol.

House Speaker Charles McCall and Appropriations and Budget Chair Kevin Wallace introduced their chamber’s proposed state budget for Fiscal Year 2025 Tuesday, but the inclusion of an income tax cut and a $1 billion gap between the House and Senate plans, means the fight over how to spend state tax dollars continues.

The House’s $12.6 billion budget plan accounts for a quarter-percent income tax cut, which the Senate made sure to leave out of its budget proposal last month.

House Speaker Charles McCall, R-Atoka, says an income tax cut is a must-have for House Republicans.“We're not going to give up on tax cuts for the state of Oklahoma,” McCall said. “It's a priority for the House, and so, that's going to be something that we're going to be very serious about in our discussions with the Senate.”

Senate Republicans have consistently objected to more tax cuts this year, after slashing the state’s portion of sales tax on groceries. Their budget doesn’t factor in any income tax cuts, meaning less revenue lost for the state and more money to spend.

The House plan includes carry-over funding from last year for support staff pay raises at off-formula public schools and an injection to build a new headquarters for the Oklahoma State Bureau of Investigations.

House Appropriations and Budget Committee Chair Kevin Wallace, R–Wellston, was also at the press conference to give reporters a run-down of major appropriations.

Wallace said the House plan maintains a healthy reserve fund for the state. “After the House proposal for the FY 25 budget cycle, the state is still in excellent shape with a surplus of savings or cash flow liquidity of $4.8 billion,” he said.

Regardless, the House and Senate should have what they need to begin negotiations with the governor on a final state budget in the neighborhood of $12 or $13 billion.

And the public can now follow the discussion, too. The House released a budget transparency portal posted on the House website along with the budget plan. The portal shows comparable line item values for agency budget requests and each chamber’s plan.

Senate Appropriations and Budget Chair Roger Thompson, R-Okemah, told the online news organization NonDoc Senate leaders appreciate increased transparency from the House, but still very much oppose the state income tax cut McCall and House leadership are pushing.

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Lionel Ramos covers state government for a consortium of Oklahoma’s public radio stations. He is a graduate of Texas State University in San Marcos with a degree in English. He has covered race and equity, unemployment, housing, and veterans' issues.
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