OKLAHOMA CITY (OBV) – Oklahoma Gov. Kevin Stitt delivered his annual State of the State address ahead of the start of the new legislative session, emphasizing the need for income tax cuts, business development and making students more career-ready.
Stitt spoke about the accomplishments he sees Oklahoma making over the next 20 years, mentioning major income tax cuts among them.
“I see people from all over the country moving here so they can keep more of their hard earned money thanks to our 0 percent income tax. I see entrepreneurs flocking here. We’re the business headquarters capital of the world.
Because of our energy advantage, we are the manufacturing, the AI and the data center capital of the world,” Stitt said.
He said all boats must rise, bringing about growth in education, infrastructure, health outcomes and quality of life for Oklahoma to become a top 10 state.
Stitt pushed for zero income tax in the state, saying government overregulation and high taxes are detrimental to the state’s business growth. He compared Florida’s zero income tax to New York’s 10.9 percent income tax.
“New York has 19.8 million people, and their annual budget is $233 billion dollars a year. Florida, one of the fastest growing states, is bigger than New York with 22 million people. Their annual budget is half that, about $116 billion dollars a year,” Stitt said. “If more government spending was the answer, Florida would be falling apart. The opposite is true. It’s states like New York and California that are facing a massive budget crisis.”
Stitt referenced his recent efforts to cut the state’s income tax.
“I called on the legislature to cut the personal income tax from 4.75 percent to 3.99 percent. I’ve called three special sessions to try and give Oklahomans a pay raise. Instead, our recurring expenses grew last year by over $1.14 billion dollars, and that doesn’t include one time expenses or ARPA funding,” Stitt said.
Stitt called a special session this past September and last week, calling upon the legislature to reduce the income tax by .25 percent and put in place triggers that will continually reduce the income tax. In each one, the Senate took no action, adjourning on the first day of special session.
“You’ve heard me say year after year, we don’t need more taxes, we need more taxpayers,” Stitt said. “Two years ago, we cut a quarter point from the individual income tax and we lowered business tax by two full percentage points. Since then, revenue collections have increased by $1.5 billion dollars. That’s been the trend after every tax cut we’ve passed. So, I’ll sign any tax cut that comes to my desk.”
He called upon local governments to help make Oklahoma the most business friendly state in the nation by being more accommodating to companies seeking to expand into the state.
“If our local governments are levying huge permitting fees or delaying projects, it will chill investment and cause companies to look elsewhere,” Stitt said. “We have to match our competition in Dallas, Kansas City, Denver and Houston to make Oklahoma the headquarters capital of the world.”
Oklahoma must have expanded educational options that will prepare students to enter the state’s workforce by making them more career-ready, according to Stitt.
“Looking forward, let’s focus on opening the door to more workforce-oriented schools so that every kid in Oklahoma is college-ready or career-ready. Let’s empower community leaders to start new, innovative schools that are molded to the needs of our state and prepare our students for the future workforce,” Stitt said.
The governor cited the Oklahoma Aviation Academy in Norman and other schools as institutions where students can get a jumpstart on their careers.
“These high schools focus on career training instead of only focusing on college readiness,” Stitt said.
Oklahoma Aviation Academy, which is part of Norman Public Schools, gives students hands-on experience in the aviation industry.
“Students can work towards their pilot license or technical certificates in aviation maintenance and leave high school with great jobs at one of the aviation companies here in Oklahoma,” Stitt said.
Stitt said the state will continue working to bring more companies to Oklahoma and is looking to grow its various industrial sectors, including energy, aerospace and retail, while establishing new industries, such as critical mineral.
“We want to secure the critical mineral supply chain and loosen China’s grip on these technologies, and we can do that right here in our backyard. Blue Whale, Rare Earth USA and Stardust are setting up shop and are part of the critical mineral supply chain we need for our national defense,” Stitt said. “If we get our regulations right, with our low cost of energy, central location, and strong workforce, Oklahoma is the perfect place for new industries looking for a home.”
Stitt said the state needs courts to address business disputes.
“To be the best state for business and attract more top level CEOs, we need to keep pushing business friendly policies and reducing burdensome regulations. I’m calling on the legislature to take a page out of Delaware and Texas’ playbook and set up a system of courts specifically designed to address business disputes,” Stitt said. “Businesses need assurance that disputes will be adjudicated by courts with expertise in business law.”
Chad Warmington, president and CEO of The State Chamber of Oklahoma, which is the leading advocate for Oklahoma’s business community, is enthusiastic about Stitt’s vision for business development.
“We are encouraged by Governor Stitt’s vision of a very business friendly Oklahoma. By making barriers low to starting, running, and growing a business, the tide will truly raise all boats. His call to make sure Oklahoma’s students are college ready or career ready will truly be a game changer for our ongoing workforce issues. His goals to see Oklahoma lead the nation in artificial intelligence, data storage and entrepreneur recruitment are the right direction to take to grow our economy for future generations,” Warmington said. “We look forward to working with the governor and the legislature on our workforce and economic development initiatives this legislative session to truly move the needle for all Oklahomans.”
House Democratic Leader Cyndi Munson said Stitt’s address overlooks the needs of working Oklahomans.
“The Governor’s State of the State Address did not paint an accurate picture of the actual needs of every day, working Oklahomans,” Munson said. “He continues to push for income tax cuts that will disproportionately impact the wealthiest Oklahomans. The cost of the income tax cut would be $250M to the state while only giving median income earners an average of $100 per year and the top 1 percent of earners over $2,300 per year. We’ve lived through a budget deficit and drastic cuts to services that are vital to the health and well-being of all Oklahomans. Oklahomans deserve better than lip service about a ‘pay raise’ – we deserve leaders who understand the real challenges we face and who are willing to find solutions to those challenges.”
The governor began the address with kind remarks for Lt. Gov. Matt Pinnell, Senate President Pro Tempore Greg Treat and House Speaker Charles McCall, acknowledging the “hard work they’ve put in over the last five years.”
“Never in Oklahoma history have the same four elected officials served in our positions together for six full years,” Stitt said. “We haven’t always agreed, but we’ve accomplished a great deal working together for the people of Oklahoma. Thank you.”
He also acknowledged the work of the legislators gathered before him on the floor of the Oklahoma House of Representatives and the task ahead once the 59th Legislature begins.
“We have to work together to move our state forward,” Stitt said. “As we fight for the well-being of those who entrusted us with leadership, there will be challenges, but we can face those challenges head on with a vision of hope.”
Stitt said Oklahoma has had significant success in the past five years, listing the following accomplishments:
- Top 10 in Real GDP growth.
- Number six in lowest cost of living.
- Number 8 in energy affordability.
- Energy advantage from promoting the state’s bedrock oil and natural gas industries.
- Pioneering new forms of energy and now we’re number 3 in wind energy production.
- Securing the critical mineral supply chain.
- Top 10 state for attracting new residents.
“People are looking to Oklahoma as the example of a shining city on the hill,” Stitt said.
Stitt reflected on actions he has taken since beginning his first term as governor in 2019. He touted cutting “excessive government regulation,” saying the deregulation made it easier for businesses to navigate state government.
“Since then, it has become even more clear to me: Government isn’t the answer,” Stitt said. “In the last five years, we’ve had record revenue growth, the lowest unemployment and record savings.”
Oklahoma’s unemployment rate was 3.4 percent in December, the highest it’s been September 2021. It was as low 2.7 percent in July 2023. It began steadily rising back to the latest rate in August. The state’s labor force participation rate was 62.7 percent in December.
