The total authorized amount state lawmakers can spend on state agencies for the 2027 fiscal year is $12.1 billion.
That's just a bit more than what the State Board of Equalization estimated during its last meeting in December, but still nearly $650 million less than last fiscal year.
Still, even as some fear a potential budget shortfall, Gov. Kevin Stitt says he's optimistic based on incoming revenues.
"We're up $459 million in collections," Stitt said after watching Oklahoma Management and Enterprise Services (OMES) officials present the budget numbers. "Personal income tax is up even though we cut it a quarter last year… We're going to have another billion dollars to put into savings. So yeah, overall things are looking great. Our economy has never been better."
The number Stitt mentions is the difference between what the BOE certified as the state's collected revenues in FY 2026, $10.6 billion, and what it certifies for collections as of this month's estimate, about $11 billion, which, when using the exact totals provided at the meeting, equals $460.6 million.
Oklahoma's total savings equal nearly $3.7 billion, according to BOE documents provided at the meeting. Lawmakers can use most of that to cover the state's coming costs.
The 'billion dollars' Stitt said will be added to that amount is actually $873.4 million. It's rolling over from last year, because the state only ever certifies 95% of its available revenue.
Stitt made no mention of federal mandates, which could cost the state up to a billion dollars in extra welfare administration costs by FY 28, if lawmakers fail to meet them. He also didn't mention the potential budget shortfall Republicans in the legislature keep talking about.
But he did say he expects lawmakers to have to tap into those savings he mentioned; what's unclear is by how much. He said he's urging lawmakers not to spend savings on recurring costs.
"Now … capital expenditures, a one-time item, that's what we use savings for, right?" Stitt said. "Not ongoing expenses. Always look at recurring revenue, which is basically your income, and keep your expenses below ongoing revenue. And we'll be in a great situation in Oklahoma."
Democratic lawmakers have repeatedly emphasized the rising cost of living in the state and the strain that it will put on the budget.
Rep. Andy Fugate (D-Del City) was at the equalization board meeting. He said he left disappointed in Stitt's continued push for flat budgets, which Fugate said will bleed Oklahomans of their money.
"What we see is that cuts continue the bleeding here in the state of Oklahoma," Fugate said. "And ultimately, when that bleeding reaches a certain point, we wind up tax shifting again, where we will, for instance, remove additional exemptions on things that predominantly hurt poor people."
Fugate stopped short before saying how he thinks lawmakers will solve the state's issues with the certified budget they now have.
"I don't have a crystal ball," he said, explaining he just doesn't know what to expect going forward. But what he does know, he said, is that state governments "don't run on pixie dust."
