TRANSCRIPT
Announcer: Capitol Insider sponsored by United for Oklahoma. Tribal nations reinvesting in Oklahoma communities with over $23 billion economic impact to benefit all Oklahomans. More at unitedforoklahoma.com. Oklahoma thrives together.
Dick Pryor This is Capitol Insider - taking you inside politics, policy, and government in Oklahoma. I'm Dick Pryor with Quorum Call publisher, Shawn Ashley. The state's new fiscal year began July 1st, so we now have a full view of the state's tax revenue for the just completed 2025 fiscal year. Shawn, what do those numbers tell us?
Shawn Ashley: State Treasurer Todd Russ reported gross tax collections for fiscal year 2025 totaled $16.92 billion. That was $38.6 million or 0.2% more than was collected in fiscal year 2024. Only individual income tax and use tax collections showed increases over the fiscal year according to Russ's report. Corporate income tax, gross production taxes on oil and natural gas, sales tax collections were all down along with a combination of 70 smaller tax sources.
Dick Pryor: So, the only growth area in state revenue was individual income tax and use tax. But the legislature and governor just cut the individual income rate effective January. So, it would appear that the state could be set up to see its overall revenue decrease in the next year and beyond. Is that what lawmakers and Governor Stitt intended?
Shawn Ashley: Yes, I think it is. When Stitt and legislative leaders have talked about limiting the size and growth of government, they talk about both sides of the ledger - limiting the amount of revenue that comes in, and limiting, or in some cases even reducing the amount, going out in expenditures.
Dick Pryor: On July 1st, the Oklahoma Supreme Court made a significant ruling regarding the state's tax code. What did they decide?
Shawn Ashley: The Oklahoma Supreme Court said it would not extend the U.S. Supreme Court's McGirt decision to the state's civil or tax code. In the McGirt decision, the U.S. Supreme Court said in 2020 that certain Native American tribes have jurisdiction over specific criminal matters. In the case that was before the Oklahoma Supreme Court, a tribal member argued McGirt should be applied to an Oklahoma Tax Commission administrative rule that exempts tribal members who live on tribal land and work for tribal entities from the state individual income tax. The petitioner, the Oklahoma Supreme Court said in its decision is quote, “asking the court to extend McGirt to civil and regulatory law to find the state is without jurisdiction to tax the income of a tribal member living and working on the tribe's reservation. This we cannot do.”
Dick Pryor: Now let's go from revenue and taxation to education. State Superintendent Ryan Walters made some news with a couple of announcements. What does he want to do now?
Shawn Ashley: Walters said the department plans to require all school districts to provide free lunches to all students and to reduce their administrative costs to pay for it. He also announced a plan to require teachers coming into Oklahoma from other states to be evaluated on their knowledge of the U.S. Constitution, their understanding of “American exceptionalism,” and their grasp of fundamental biological differences between boys and girls.
Dick Pryor: And who develops the criteria for determining just exactly whether they are up to speed on all of that.
Shawn Ashley: That assessment is being developed by PragerU. Now that's the distribution platform for Dennis Prager, the conservative talk show host and author who Walters appointed to the executive review committee for the new social studies standards that were approved earlier this year.
Dick Pryor: Superintendent Walters has already received blowback from a leading lawmaker on education matters - former teacher Dick Lowe - who is chair of the House Education Committee. What is Lowe's response?
Shawn Ashley: Regarding the lunch proposal, Lowe said Walters does not have the constitutional or legal authority to direct how individual school districts allocate their budgets. He said this attempt to overstep the authority of Walters’ office is a threat to the independent decision-making power of Oklahoma school districts, and he said it was nothing more than an empty threat. Lowe added that those kind of changes have to be implemented by the legislature. And that in this case, it would be an unfunded mandate. He also noted that any administrative rule to address the issue would be subject to State Board of Education approval and legislative review.
Dick Pryor: Thank you, Shawn.
Shawn Ashley: You're very welcome.
Dick Pryor: For more information, go to quorumcall.online. You can find video of Capitol Insider segments on the KGOU You Tube channel. Audio and transcripts are at kgou.org. And look for Capitol Insider where you get podcasts. Until next time, with Shawn Ashley, I'm Dick Pryor.
Announcer: Capitol Insider sponsored by the Oklahoma State Medical Association. Physician members who are committed to better health for all Oklahomans. Learn more at okmed.org.
Announcer: These days, there's so much news. It can be hard to keep up with what it all means for you, your family, and your community. The Consider This podcast from NPR features our award-winning journalism. Six days a week, we bring you a deep dive on a news story and provide the context and analysis that helps you make sense of the news. We get behind the headlines. We get to the truth. Listen to the Consider This podcast from NPR.
KGOU is a community-supported news organization and relies on contributions from readers and listeners to fulfill its mission of public service to Oklahoma and beyond. Donate online, or by contacting our Membership department.
