[Cobo] FW: FY26 Budget Agreement – Higher Education Funding Overview

[Mauck, Sheri]

Business Officers,  please find the correspondence below shared this morning with your Presidents on the FY26 Budget Agreement with the Governor and Legislature.  This information will be helpful as you complete your tentative Tuition Proposal worksheet due back to us by May 21st.

Also, as we continue work on the deferred maintenance request it is important that you forward your third quarter report on the current (FY25) capital projects funded for deferred maintenance.  Please complete those reports and send to Mark as quickly as possible.  We are responding to direct inquiries from the legislature and need your institutions reports for current information.  Send to Mark Tygret @ mtygret at osrhe.edu<mailto:mtygret at osrhe.edu>

Please let us know if you have questions.  Thank you for your attention and response as we move into the final weeks of the session.

From: Smith, Kylie <ksmith at osrhe.edu>
Sent: Thursday, May 15, 2025 8:52 AM
To: Presidents <pres at osrhe.edu>
Cc: Burrage, Sean <Sburrage at osrhe.edu>; Beauchamp, Stephanie <sbeauchamp at osrhe.edu>; Caddell, Angela <acaddell at osrhe.edu>; Jobe, Jarrett <jjobe at osrhe.edu>; Mauck, Sheri <smauck at osrhe.edu>; Smith, Kylie <ksmith at osrhe.edu>; Tygret, Mark <mtygret at osrhe.edu>; Turner, Chris <cturner at osrhe.edu>
Subject: FY26 Budget Agreement – Higher Education Funding Overview


Good morning Presidents,



Yesterday afternoon, Governor Stitt and legislative leaders announced that an agreement had been reached for the FY26 budget, which includes a 0.25% income tax cut.



For FY26, higher education is slated to receive a base appropriation of $1,023,746,221, which includes the $12.5 million in one-time funds originally allocated in FY25 for property insurance premiums. In addition to the base, higher education will receive:

  *   $2,000,000 for the Rising Scholars Award scholarship program (HB1282)
  *   $3,000,000 for the OU Tutoring Program (HB1287)
  *   $70,000,000 for Oklahoma’s Promise (a $2.3 million increase over FY25)
  *   $740,310 to extend Oklahoma’s Promise eligibility to children of K12 teachers (HB1727)



The total FY26 appropriation for higher education will be $1,098,405,926.



Additionally, higher education will receive the full $101 million in deferred maintenance funding in FY26, rather than distributing it over three years as previously planned. Details regarding how those funds will be distributed are still being finalized, but we will keep you updated.



Below are links to media coverage of the budget agreement:

  *   Gov. Stitt, legislative leaders announce budget deal including tax cuts, tort reforms: What we know<https://www.oklahoman.com/story/news/politics/2025/05/14/oklahoma-legislative-session-2025-budget-deal-income-tax-cuts-tort/83629781007/> – The Oklahoman
  *   Gov. Kevin Stitt, GOP leaders announce agreement on budget, tax cut<Gov.%20Kevin%20Stitt,%20GOP%20leaders%20announce%20agreement%20on%20budget,%20tax%20cut> – Tulsa World
  *   White smoke: FY 26 budget deal contains tax cut, #oklaed bump, prison purchase, OU/OSU projects<https://nondoc.com/2025/05/14/oklahoma-fy-26-budget-deal-contains-tax-cut-oklaed-bump-prison-purchase-ou-osu-projects/> – NonDoc
  *   Oklahoma Republicans tout proposed $12.6 billion budget deal: Stitt could receive long-desired tax cut<https://oklahomavoice.com/2025/05/14/oklahoma-republicans-tout-proposed-12-6-billion-budget-deal/> – Oklahoma Voice



Please let us know if you have any questions.



Kylie



Kylie Smith, Ph.D.

Vice Chancellor for Administration

Oklahoma State Regents for Higher Education

655 Research Parkway, Suite 200

Oklahoma City, Oklahoma 73104

405.225.9122

ksmith at osrhe.edu<mailto:ksmith at osrhe.edu>

follow us on X @okhighered





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