Budget & Taxes (State Budget)

SB 2079, the "Flat Budget Act," prohibits Oklahoma state agencies from receiving more funding in fiscal year 2027 than they received in fiscal year 2026. It requires the State Treasurer to transfer any excess funds from agencies exceeding this cap into the General Revenue Fund for FY2027. The law applies directly to all state agencies receiving appropriated funds and takes effect July 1, 2026. This creates a strict funding freeze for most agencies, with no increase allowed unless specifically authorized by law.

HB 3024 establishes a 10% annual cap on salary increases and bonuses for most state employees in executive branch agencies, requiring cabinet secretary approval for any increase exceeding this limit. It mandates that agencies set performance metrics for bonus eligibility and document salary adjustments above 10% due to role changes or performance reviews. The bill excludes executive directors, positions requiring advanced degrees or state licenses (like doctors and engineers), and employees of higher education systems or school districts from these limits. These provisions take effect July 1, 2026, with the Office of Management and Enterprise Services overseeing implementation.

HJR 1068 proposes a constitutional amendment to Oklahoma's budget process. It requires the State Board of Equalization to certify annual revenue estimates 35-45 days before each legislative session, capping annual state spending increases at 6% (adjusted for inflation). The bill establishes a Constitutional Reserve Fund that must grow to 15% of the previous year's revenue estimate, with limited use of reserve funds for manufacturing incentives under strict conditions. This directly affects how Oklahoma's legislature appropriates funds, limiting annual spending growth and mandating specific revenue certification procedures.