OKLAHOMA CITY (OBV) — The State Board of Equalization certified preliminary figures for Fiscal Year 2027 on Dec. 19, reporting $10.948 billion in recurring revenues, an increase of $338 million year over year, and $3.7 billion in savings. OMES estimates put total expenditure authority at about $12.046 billion, reflecting lower available cash even as recurring collections rose. The Board will reconvene in February to set the final estimate ahead of the 2026 legislative session.
Gov. Kevin Stitt said the outlook remains stable: “Oklahoma continues to outperform expectations. State revenue is on a stable path, and we have a strong savings account. Remember, cutting taxes doesn’t make the money disappear. Oklahomans keep their hard-earned dollars to spend at the grocery store or the bike shop. The evidence is right in front of us. When we cut taxes, our economy grows, and we’re all better off.”
“Oklahoma continues to outperform expectations. State revenue is on a stable path, and we have a strong savings account. Remember, cutting taxes doesn’t make the money disappear. Oklahomans keep their hard-earned dollars to spend at the grocery store or the bike shop. The evidence is right in front of us. When we cut taxes, our economy grows, and we’re all better off.”
Legislative response
Following the certification, Senate Appropriations leaders signaled a disciplined approach to budgeting.Senate Appropriations Chair Chuck Hall, R‑Perry, said, “Oklahoma’s economy remains strong, but revenue collections are slowing,” adding that “all signs indicate that state revenues will remain relatively flat, which will limit the Legislature’s ability to make major new investments next year.” He noted that agency requests exceed $1.5 billion and said the Senate would emphasize spending discipline and efficiencies.
Vice Chair John Haste, R‑Broken Arrow, said, “Revenue growth is flattening, and that reality requires us to be careful, disciplined and strategic.” He emphasized accountability, transparency, and targeted investments in core priorities.
Outlook and next steps
The quarter‑point personal income tax trigger adopted in 2025 was not activated based on this year’s estimates. Reporting indicates the state remains about $1 billion short of the threshold.
By constitutional rule, the Legislature may appropriate up to 95% of certified state revenues. The Board’s February meeting will finalize the amount available for appropriations for FY 2027.
By the numbers
- Recurring revenues: $10.948B, up $338M year over year
- Total expenditure authority: ~$12.046B, down about 5.6% from last year
- Savings balances: $3.7B in reserves and cash
- Appropriation rule: Up to 95% of certified state revenues may be appropriated
- Tax trigger: Quarter‑point personal income tax trigger not activated; roughly $1B short of threshold
- Agency requests: Legislative leaders cite $1.5B+ in new funding requests from executive branch agencies
- Next meeting: February 2026, for final certification ahead of the session
