FY 2020 Budget Highlights

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The FY 2020 budget increases funding significantly.

• State agencies will be appropriated a total of $7.999 billion in FY 2020. This is an increase of $431.7 million (5.7 percent) compared to the initial FY 2019 budget approved last May and $1.033 billion (14.9 percent) above FY 2018.
• Without accounting for inflation, next year’s appropriations will be the largest in state history, surpassing the $7.567 billion budget in FY 2019.
• When adjusted for inflation, next year’s budget remains 10.2 percent ($906 million) below the budget of FY 2009 and 14.9 percent ($1.398 billion) less than the peak year of FY 2007.

There are no major tax policy changes.

• New or expanded tax breaks were passed for the Film Enhancement Rebate Program, software or cybersecurity employees, sales of prosthetic devices, rural physicians, first-time home-buyers and large entertainment districts. These tax breaks have a combined revenue impact of less than $10 million in FY 2020, although the cost will grow in future years.

The largest funding increase goes to the Department of Education.

• Total appropriation for K-12 education is increased $158 million (5.4 percent) from initial FY 2019 funding.
• Common education receives increases of $58 million for teacher pay raises averaging $1,200 per year; $19 million for increased benefit costs; $5 million for the Reading Sufficiency Act; and $74 million through the school funding formula for general operations.
• State support for school operations — excluding money for mandated pay raises — will remain some $103 million less than its peak in FY 2008, even as K-12 enrollment has grown by over 50,000 students.

Several other agencies receive funding increases, including:

• The Department of Mental Health and Substance Abuse Services (ODMHSAS), Oklahoma Health Care Authority (OHCA), and Department of Human Services (DHS) are funded to increase most provider rates by 5 percent;
• The Office of Management and Enterprise Services receives a $49.9 million increase for information services, accounting and asset management, Governor’s Mansion repairs, and increased bond payments. 
• The Department of Corrections receives $38.3 million for a $2.00 per hour pay raise for employees in correctional facilities, Hepatitis C remediation, and county inmate transport.
• The Regents for Higher Education receives $25.3 million for a 3.5 percent increase in faculty salary, concurrent enrollment programs, and deferred maintenance. 
• Budgets are increased for the Governor, House of Representatives, Senate, and Legislative Service Bureau by $13.4 million (34.1 percent).
• State workers receive raises ranging from a maximum of $1,500 for employees with salaries under $40,000 to a minimum of $600 for those with salaries over $60,000. The Legislature appropriated $37.7 million to cover pay raises.
• While most agencies receive an increase for FY 2020, 39 agencies (60 percent) have lower budgets than in 2009.

The budget sets aside funds to cushion future revenue losses.

• The budget sets aside $200 million for the Revenue Stabilization Fund to be available when volatile revenue sources fall and also saves $29 million of increased federal Medicaid funds to maintain provider rates if federal funding declines in the future. 
• The Rainy Day Fund is set to receive an automatic deposit of over $400 million at the end of the current fiscal year due to revenue collections exceeding estimates, which will bring the Fund to close to $900 million, its largest balance ever.

Visit our interactive table to see the full appropriations history for each state agency from FY 2009 to FY 2020.

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