Lawmakers introduce largest budget in state history during final week of session

Oklahoma's largest-ever state budget, representing nearly $13 billion in appropriations, has advanced from committee in the final week of the 2023 legislative session.

The agreement between legislative leaders includes nearly $4 billion for the Oklahoma State Department of Education, a 24.8% increase over last year's appropriation. It also includes increases for higher education and CareerTech institutions.

The budget bill increases spending at the Oklahoma Health Care Authority, which manages the state's Medicaid program, by more than 18%.

Half a billion dollars will be earmarked for immediate and future renovation of state buildings through the newly created Legacy Capital Financing Act. The purpose of the act is to let agencies avoid having to secure outside financing for construction projects.

Instead, agencies would seek financing from another state agency, the Oklahoma Capitol Improvement Authority, and pay back those funds over 20 years.

Previously: Oklahoma could see budget agreement early in the final week

Rapid movement on the state budget in Oklahoma joint committees

Lawmakers in the House and Senate Joint Committees on Appropriations and Budget dug in Tuesday, spending hours digging into both spending bills and policy initiatives that were introduced this week. Each committee's agenda included more than 60 bills covering a wide range of state law.

It was an unusual pace of work at the Oklahoma Capitol this year. The Legislature has been stuck in quagmire for months while leadership argued about how to implement tax credits for private school attendance.

Bills that passed both committees can be heard on the House and Senate floors through Friday. Legislative leadership have indicated they want to finish work by Friday, and come back to the Capitol in June if Gov. Kevin Stitt vetoes any of the bills adopted this week.

Along with the general appropriations bill that appropriated funds directly to state agencies, lawmakers approved spending limits in other bills that highlight how they want some of that money to be spent.

What's left in the legislative session? Significant policy changes revealed in final days of the 2023 legislative session

Grocery and personal income tax cuts are not happening this session

The idea of cutting taxes has lingered in the background this year as other priorities consumed much of the discussion among budget negotiators. Ultimately, proposed cuts to the grocery tax, personal income tax and corporate income tax won't happen this year, even though they were among the priorities announced by the governor at the beginning of the session.

Lawmakers did approve smaller tax cuts, however.

The franchise tax requires companies to pay the state $1.25 for every $1,000 of capital invested or otherwise used in Oklahoma. This tax would be eliminated for future tax years.

Another bill approved in committee on Tuesday standardizes tax brackets between single and joint tax return filers. Called a fix to Oklahoma's "marriage penalty" tax, the bill ensures that two individuals filing taxes separately would pay the same amount as a married couple reporting the same total combined income.

More: Stitt vetoes bill that would reduce his influence on Oklahoma Turnpike Authority

Although it's not a tax cut, lawmakers approved a tax credit for people who care for family members. The bill creates an income tax credit for 50% of eligible expenditures incurred by a family caregiver for the support of an eligible family member who is 62 or older.

This article originally appeared on Oklahoman: What's in Oklahoma's largest state budget ever introduced?