Gov. Kevin Stitt proposes $8.3 billion budget for next fiscal year

Stitt’s proposed $8.3 billion budget for fiscal year 2022 is a starting point. The budget funds agencies, supplemental appropriations, savings, pension reapportionment and one-time expenditures.

The Board of Equalization on Feb. 16 will determine how much money lawmakers have to spend in crafting a fiscal year 2022 budget. Officials are expecting an increase in available dollars from that meeting.

Stitt’s budget projects to deposit $300 million into the state’s Revenue Stabilization Fund. The Revenue Stabilization Fund currently contains $171 million, while the state’s Rainy Day Fund has $58 million, said Shelly Paulk, state budget director.

Stitt’s budget expects to pay for the $164 million Medicaid expansion by increasing the Supplemental Hospital Offset Payment Program, or SHOPP, to 4% from 2.5%, said Brandy Manek, director of budget, policy and gaming.

Secretary of State Brian Bingman said increasing the rate would require legislative approval.

Hospitals are allowed to voluntarily assess a 2.5% fee on their annual net patient revenue. The money is used to capture more federal Medicaid dollars.

Voters in June approved a state question to expand Medicaid to about 200,000 additional people.

In addition, officials plan to use savings from moving Insure Oklahoma clients into expanded Medicaid to pay for it, Manek said. Insure Oklahoma provides health care coverage for low-income, working adults. The state, employer and employee all pay a percentage to fund it.

The budget also bolsters the state’s pension systems.

“This move allows pension systems to improve their financial standing and grow at a faster pace toward being fully funded,” said Chief Financial Officer Amanda Rodriguez.

The budget also calls for $20 million for the state’s Quick Action Closing Fund, which is used to attract businesses to the state.

Stitt’s budget also proposes to restore $180 million to the state Department of Transportation’s Rebuilding Oklahoma Access and Driver Safety Fund that had been redirected to the Education Reform Revolving Fund.

“This additional funding helps ODOT continue to move forward on their eight-year construction work plan which contains critically needed transportation improvement projects for Oklahoma’s interstates, U.S. and state highways and bridges,” Rodriguez said.

Under Stitt’s budget, the Oklahoma Department of Corrections would receive an additional $7 million to continue the creation of a new offender management system to replaces the current one which is 25 years old.

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