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As we enter the final stretch of this year’s legislative session, I'm glad to share that we have a budget agreement.

This year has been especially meaningful for me personally, as it’s my first year serving as Vice Chair of the House Appropriations & Budget Committee. It’s been an incredible learning experience and has given me a front-row seat to how the budget is built from the ground up. I’ve gained a whole new appreciation for the work that goes into crafting a responsible and balanced budget, and I’m proud to be part of the team doing that work.

On Wednesday, I joined the governor, A&B Chair Trey Caldwell, House Speaker Kyle Hilbert, and other legislative leaders to announce our agreement on the FY2026 state budget. It’s a $12.6 billion plan, and I’m proud to say it reflects the priorities of the everyday Oklahomans who keep our state moving forward. The result is a balanced, responsible budget that keeps our state on solid footing while making smart investments for the future.

Let's take a look at some of the highlights.

First, we’re delivering a tax relief package. The agreement includes a 0.25% across-the-board income tax cut and eliminates the lowest three tax brackets altogether, which means more money in your wallet. On top of that, we’ve set up a trigger-based path to eventually phase out the state income tax — but only if certain revenue benchmarks are met. It’s a thoughtful approach that keeps Oklahoma’s finances stable while working toward lower taxes.

We’re also keeping our financial house in order by maintaining a record $3.5 billion in the state’s Rainy Day Fund. That’s a huge cushion to help weather future economic downturns, and it’s a major step up from our empty state savings account just a few years ago.

Education remains another top priority in this budget agreement. We’re putting an extra $25 million into the state’s school funding formula and extending the teacher salary schedule by ten years. That means our most experienced teachers can continue receiving well-earned pay raises and our students can benefit from their expertise.

In response to the financial issues facing the Oklahoma Department of Mental Health and Substance Abuse Services, we're appropriating a $27.4 million supplemental to tide the agency over until the remainder of FY25 on June 30. While we haven't fully unraveled the fiscal picture at the agency, we plan to continue working over the interim to gain a better understanding of the situation and prepare to address the root of the problem next session.

The budget also includes some one-time expenses in priority areas as well. We’re appropriating $200 million for a new pediatric heart hospital at OU Health, which will give Oklahoma children access to top-tier care. And for our agricultural sector and rural communities, we’re investing $250 million in a brand-new, state-of-the-art veterinary hospital at Oklahoma State University.

After the devastating wildfires in March, it was clear we needed to take action. That’s why we’ve included $2.3 million in this budget to help prevent future wildfires, including work to remove the highly flammable and invasive Eastern Red Cedar, which made those fires so destructive.

Overall, I believe this budget reflects both strong fiscal responsibility and a real vision for the future. I’m proud to have had a role in shaping it, and I’ve come away from this experience with an even greater respect for the process and a clearer understanding of how we can use the budget to directly improve people’s lives.

If you'd like to review the budget proposal, you can visit okhouse.gov and click on the “Budget HQ” button.

In the next couple of weeks, the Legislature will be voting on dozens of individual budget bills tied to this agreement as we work toward our May 30 sine die adjournment. As always, I’ll keep you updated, and if you have any questions or thoughts, you can contact me at (405) 557-7358 or by email at john.kane@okhouse.gov.

Rep. John Kane, a Republican, serves House District 11 in the Oklahoma House of Representatives, which covers Tulsa and Washington counties.