With about $12 billion to work with, not counting the state's dwindling savings account, Stitt is once again calling for flat budgets across state agencies, especially in light of federal mandates that could cost the state hundreds of millions in years to come.
"Recent federal shutdowns and a $38 trillion federal debt show us that the federal government isn't a reliable partner," Stitt said. "It's essential that we maintain a conservative financial position. Let's be cautious with unfunded mandates, new agencies and new programs."
Along those lines, Stitt called for Oklahomans to vote on a series of state questions: a cap on recurring agency appropriations at 3%, a freeze on property taxes statewide and a revamp of the state's Medicaid system to meet mandates by Congress.
Stitt also proposed eliminating the cap on how much the state can spend on the state's school choice program each year. He spoke about the need to raise Oklahoma's early childhood literacy rates, which are among the worst in the nation, along with general education outcomes.
His speech serves as a wishlist for his last year in office. Lawmakers can choose to follow or ignore his priorities at their discretion.
Legislative leaders respond to Stitt's speech
For the most part, Republican leadership seemed aligned with the governor, at least in ideology.
House Speaker Kyle Hilbert, R-Bristow, and Senate Pro Temp Lonnie Paxton, R-Tuttle, agreed widely with the governor's push to cut state spending, reform government welfare programs and improve Oklahoma's literacy outcomes.
Hilbert said he appreciated Stitt's call to limit eligibility requirements for expanded Medicaid, which is administered by the Oklahoma Healthcare Authority. Everything that early detractors of Medicaid eligibility expansions worried would happen is happening, he said.
"Just last week on the House floor, we had the director of the Oklahoma Health Care Authority, [Clay Bullard], present a budget where he stated they need $494 million in recurring expenditures just to maintain the services," Hilbert said. "That's…due to increased utilization projected in the traditional Medicaid and the expansion Medicaid population."
Hilbert has his own measures meant to align with recent mandates by Congress ordering states to get a better grip on their administration of Medicaid and federal food benefits. Not meeting those mandates could mean up to a billion dollars in extra yearly costs between two programs, according to estimates by the Senate's fiscal human services chair, Sen. Paul Rosino, R-Oklahoma City.
Republican leaders also back the governor's call to end legal medical marijuana in Oklahoma, in an effort to crack down on organized crime.
"One of the greatest threats to public safety is the out-of-control marijuana industry," Stitt said. "When Oklahomans voted to legalize medical marijuana in 2018, we were sold a bill of goods…"
A lack of regulations at the outset of Oklahoma's medical marijuana industry opened up Pandora's box, Stitt said. Paxton seconded the governor, saying that while the discussion isn't new among lawmakers, Stitt's public position is.
"What we ended up with was a very dangerous situation in most parts of our state," Paxton said. "The original vote passed with 57% of the vote. And a couple of years ago, they tried a recreational marijuana state question that was defeated by 63% of the voters."
"So I think the second vote is Oklahomans saying they're fed up with what we ended up with," he said.
Paxton said he's not sure about eliminating the $250 million cap on how much Oklahoma can spend on its school choice tax credit.
"I'm not against conversations about raising the cap, but I will not remove the cap," Paxton said.
While Stitt advocated for reconfiguring eligibility requirements for social welfare benefits to include fewer people, Democrats in both chambers called him out of touch with the needs of Oklahomans, who are struggling with rising prices for food and housing.
House Minority Leader and 2026 gubernatorial candidate Cyndi Munson, D-Oklahoma City, took issue with Stitt's failure to mention any initiatives to make the lives of everyday low-income Oklahomans more affordable.
"The governor clearly has a misunderstanding — is so disconnected from what everyday folks are going through that he doesn't understand what's happening in healthcare across the state," Munson said.
Oklahomans aren't asking for an endowment fund, she said, referring to Stitt's newly proposed $750 million savings account.
"They're asking for investment in core services of government," Munson said. "They need higher wages, and they want policies that actually support their families."
Senate minority leader Julia Kirt, D-Oklahoma City, expressed much of the same concerns as her counterpart in the House. Speaking to members of the press after Stitt's speech, she said she thinks the governor is ignoring the state's most pressing problems.
"One of the biggest being our mental health crisis," she said. "Our waiting lists are longer than they've ever been. We have a huge criminal backlog, and this is not getting better."
Kirt also said Oklahoma's childcare and education systems are also major concerns for people.
"We have a child care system that's on the brink of collapse because of a lack of contingency planning and financial planning," Kirt said. "We have record numbers of unprepared teachers in our classrooms — adjunct teachers and emergency certified teachers."
Kirt said she wants to see leadership that knows the hardships their neighbors face every day.
"I think the primary takeaway for me from the governor's speech is that I felt like the governor was living in a different Oklahoma, that he's not really listening to the people of Oklahoma because nothing he talked about would address our cost-of-living crisis," she said.
