Budget & Tax

Report hails Oklahoma government for financial stability

September 29, 2025

Ray Carter

As a candidate for governor in 2018, Kevin Stitt argued the state should build up at least $2 billion in savings to weather future downturns and avoid the financial chaos that prevailed during Gov. Mary Fallin’s second term.

A national report shows that the Oklahoma government has not only achieved Stitt’s initial goal but far surpassed it, becoming one of the more financially stable state governments in the nation.

“Financial Status of the States 2025,” by Truth in Accounting, found that 25 states do not have enough money to pay their bills, but concluded that Oklahoma is financially stable. The report ranked Oklahoma 16th best overall based on the average surplus per citizen. In the local region, only one state, Arkansas, fared better.

The report, based on Oklahoma’s fiscal year 2023 data, credited the state with a $5.7 billion surplus, which averages $5,000 per taxpayer.

The report stated, “Bottom line: Oklahoma had more than enough money to pay its outstanding bills and received a ‘B’ grade for its finances.”

“I’m proud of where Oklahoma’s at. One of my top priorities coming into office was getting Oklahoma’s fiscal house in order,” Stitt said. “We’re only here now because we’ve reined in spending, built a historic savings account, and delivered a turnaround.”

Prior to Stitt’s election, the state government experienced several years of major shortfalls, tied in part to lawmakers’ repeated use of one-time funds to prop up recurring state spending amidst an oil bust. The shortfalls ran as high as $1.3 billion, and lawmakers ultimately raised taxes on everything from citizens’ income to gasoline to oil production.

Stitt began his term in 2019 with a plan calling for the state to set aside $2 billion into savings over four years, a level far greater than the total savings achieved under any prior governor. That plan was initially dismissed by many political observers and actively panned by some.

For example, in 2019, the House Democratic caucus released a budget plan that would have spent the entirety of that year’s $570 million surplus and also increased taxes on Oklahomans’ income to increase spending even more.

Even as Stitt and lawmakers have built up state savings, they have cut taxes, reducing the personal income tax rate to 4.5 percent and putting the income tax on a gradual path to repeal, while also increasing funding in areas like education. Since 2018, Oklahoma’s total per-pupil public-school revenue has increased by 51 percent.

While the governor and state lawmakers have drawn down state reserves since the 2023 fiscal year, Oklahoma still maintains $3.69 billion in savings.