By Barbara Hoberock, Oklahoma Voice
OKLAHOMA CITY – Gov. Kevin Stitt on Monday called on Oklahoma lawmakers to spend nearly $1.4 billion less in the upcoming budget while cutting two key funding streams.
The Republican governor’s executive fiscal year 2026 budget unveiled Monday proposes slightly more than $11 billion in spending, and includes a .50 percent cut in the state’s personal and corporate income taxes as well as an amnesty program that gives Oklahomans the opportunity to pay past-due taxes without penalty.
Reducing the state’s 4.75 percent income tax rate would cost $202.6 million, while an identical cut to the corporate income tax rate would cost $34.7 million in fiscal year 2026, the Governor’s Office projected.
The budget, which serves as a starting point for lawmakers, proposed a tax amnesty program to generate an additional $75 million.The last such program was in 2015 and brought in $139 million.
The budget also includes:
• $2 million to fund a business court system and hire judges that “will be specially equipped to understand corporate and complex litigation.
• Removal of the $250 million cap for the Parental Choice Tax Credit for tax year 2027 and beyond. The program, which provides up to $7,500 to help families cover private school expenses, is capped at $250 million in budget year 2026 and all subsequent years.
• A slight increase for the Oklahoma State Regents for Higher Education;
• And, flat budgets for the State Department of Education; the Governor’s Office; the House and Senate; the Department of Corrections; District Attorneys Council; Attorney General; Indigent Defense System; and Pardon and Parole Board.
