TRANSCRIPT
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. Shawn, this is a time of year when state agencies and departments make their budget requests to legislative committees to let them know what they need and hope the legislature delivers the next session's appropriations that they're wanting. How does that process work?
Shawn Ashley: Well, it varies from agency to agency, but the underlying questions are always the same. How do we provide the services we're required to provide by law? And are there other services that we should be providing and how much would it cost to do so? Agencies answer those questions and submit those findings to the legislature and the governor through the Office of Management and Enterprise Services by October 1st of each year. Governor Kevin Stitt and his staff usually meet with some of the agencies to discuss their request as well as his ideas about their operations and funding. And legislative budget subcommittees, of course, will hold hearings with the agencies to hear how much they need and why. And those discussions ultimately influence the budget bills we see near the end of the legislative session.
Dick Pryor: Governor Stitt is urging flat budgets. Is that happening?
Shawn Ashley: Largely no. Two agencies are asking for budget reductions. Only a dozen requested flat budgets. Combined, state agencies are asking lawmakers for more than $1.65 billion in new appropriations for fiscal year 2027. That would be a 14.21% increase over the current fiscal year spending.
Dick Pryor: Costs continue to rise for consumers and for state government too. So flat budgets are, in reality, cuts. At this point are funding cuts appearing necessary in the twenty 2026 legislative session.
Shawn Ashley: We really don't know just yet. The Board of Equalization, which determines how much money lawmakers and the governor will have to appropriate for the budget, will meet December nineteenth to consider the first revenue estimate for fiscal year 2027. Governor Stitt will use that as the starting point for his budget recommendations and his State of the State speech. And these will be the last of those for Governor Stitt.
Dick Pryor: Are any budget requests you've heard particularly noteworthy?
Shawn Ashley: I would say so. Two agencies requested more than 1,000% increases in their appropriations. The Department of Emergency Management is requesting $10.2 million for fiscal year 2027. That's a $9.6 million increase, about 14.80%. Now the largest share of that request, $6.8 million, would offset the loss of federal funding coming from FEMA. The Oklahoma Space Industry Development Authority is asking for an $18.6 million or 2,067% increase for fiscal year 2027. Now just $1.1 million of the additional funds requested would be used for general operations. The remaining $17.5 million would be used for three major infrastructure projects.
Dick Pryor: Talking big dollars here. Interim studies are over, so other than hearing budget requests, what are lawmakers doing as we head toward the holidays?
Shawn Ashley: They're beginning to file bills for the 2026 session. Representative Mark Tedford, for example, who held several interim studies on insurance issues, already has filed six new bills on that issue for 2026. Nearly 30 new bills have been filed in the Senate covering a variety of topics, but those are just the tip of the iceberg of what will be filed for the 2026 session.
Dick Pryor: When is the bill filing deadline?
Shawn Ashley: It's January 15th, so it's just under six weeks away.
Dick Pryor: And what is the significance of that deadline?
Shawn Ashley: Well, it really gives us a peek at the issues that are going to be important to lawmakers in the upcoming session. Now, of course, a bill's language can be changed by an amendment or new language might be inserted into a shell bill, which is essentially a blank slate for lawmakers to work with. So, there are many opportunities for new ideas to pop up, and those are things you and I will be able to talk about.
Dick Pryor: Absolutely. And we know that they will be happening.
Shawn Ashley: Exactly.
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.
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