Governor Stitt signs FY2022 state budget package into law

GOVERNOR STITT SIGNS FY 2022 STATE BUDGET PACKAGE INTO LAW

Budget cuts taxes for all Oklahomans, invests record $3.2 billion in public education, replenishes state savings account to record high levels

OKLAHOMA CITY (May 24, 2021) – Governor Kevin Stitt signed additional legislation into law today as part of the Fiscal Year 2022 state budget package, including House Bill 2900, the general appropriations bill. The FY 2022 budget cuts taxes for all Oklahomans, invests a record $3.2 billion in education, and replenishes over $800 million in state reserve funds that were significantly reduced to offset pandemic-related revenue reductions last year for a record $1.3 billion in savings for the state of Oklahoma.

“This budget delivers the People’s Agenda and is a major win for Oklahomans in all corners of our state,” said Governor Stitt. “Because we kept Oklahoma open for business in 2020, we are able to make historic investments in education and other core services while cutting taxes and replenishing our state savings account. I commend Speaker Charles McCall, President Pro Tempore Greg Treat and the legislative leadership for their hard work to find common ground and create such a comprehensive budget package.”

House Bill 2900 authorizes $9.06 billion in spending for Fiscal Year 2022, which begins July 1, 2021.

Highlights include:

• Increases common education funding by $171.6 million, or 6%, to a record high of nearly $3.2 billion.
• Replenishes state savings account by more than $800 million to a total of $1.3 billion – a record among of savings for Oklahoma.
• Funds expanded Medicaid for low-income Oklahomans.

The Governor also signed HB 2895 which apportions $80 million to the Rebuilding Oklahoma Access and Driver Safety (ROADS) Fund; HB 2951 which creates the State-Tribal Litigation Fund; HB 2961 which reduces the tax rate paid by banking associations and credit unions; SB 608 which creates a new film tax incentive to attract and recruit more film industry projects; and HB 2946 which expands broadband in underserved and unserved areas statewide through a $42 million tax incentive for providers.

Last week Governor Stitt signed legislation as part of the comprehensive budget agreement between the House and the Senate, including an individual income tax cut and corporate income tax cut.

The budget was built on the Board of Equalization’s February certification of $9.6 billion in revenue available for appropriations. Of that figure, the agreement spends $9.06 billion and allocates the rest to tax relief, replenishing reserves or replenishing off-the-top funding temporarily redirected during the pandemic last session.