In a packed chamber at the Oklahoma State Capitol on February 2, Gov. Kevin Stitt delivered his eighth and final State of the State address, laying out a bold and, at times, controversial agenda for his last year in office. With Republican lawmakers controlling both chambers, Stitt outlined a suite of proposals designed to reshape state government, tax policy, public services and the health care landscape, even as critics warned some could strain local communities and essential services.
Stitt opened his speech touting what he called the “strongest state Oklahoma has ever seen,” highlighting record unemployment figures, robust cash reserves and tax cuts totaling roughly $1.6 billion during his tenure. He said that Oklahoma’s economic turnaround over the past seven years proved the value of conservative fiscal restraint.
The governor’s budget priorities reflect that ethos. Stitt proposed a generally flat state budget for fiscal year 2027, seeking to hold spending roughly even with the current year while starting a $750 million taxpayer endowment fund intended to generate future revenue.
He also emphasized increased funding for education and mental health services while asking lawmakers to contain overall growth in spending. Central to his address were several proposed constitutional amendments he wants lawmakers to send to voters in 2026.
Among them is a measure to cap annual recurring state spending growth at three percent, a move Stitt said would protect taxpayers from unchecked government expansion. He also advocated for a freeze on property tax growth statewide, a proposal that could have significant implications for county governments and local schools that rely on ad valorem taxes for operations and facilities.
Beyond finance, Stitt took aim at popular policies enacted by voters in recent years.Heurgedlawmakersto refer a question to voters that would allow “adjustments” to Oklahoma’s Medicaid expansion, a constitutional provision voters approved in 2020.
He argued that rising Medicaid costs could dominate future state budgets, though health care advocates warn that limiting the program could reduce access to careforlow-incomeresidents.
In a more dramatic shift, Stitt proposed sending a question to voters on shutting down the state’s medical marijuanaindustry,whichhe described as a threat to public safety and linked to criminal activity. The industry, legalized by voters in 2018, now includes thousands of licensed operations and generates tens of millions in tax revenue.
Education policy also figured prominently. Stitt called for expanding school choice programs, including removing caps on tax credits for families who opt for alternatives to assigned public schools and suggested structural changessuchasmoving to a governor-appointed state superintendent rather than an elected one.
The governor’s remarks on tribal sovereignty drew particular attention and criticism. Stitt reiterated his belief that state laws should apply equally across Oklahoma, even in areas governed by tribal jurisdictions, a stance tribal leaders described as dismissive of tribal sovereignty and intergovernmental cooperation.
For Marshall County and other rural communities, the governor’s proposals could have tangible effects. A property tax freeze may be welcomed by homeowners and farmers alike, but it could also tighten budgets for county services, rural schools, libraries and health departments that depend heavily on local tax revenue.
ChangestoMedicaidcould impact access to health care for low-income residents in areas already struggling with provider shortages. Also, proposals to shrink state spending might limit future investments in infrastructure, public safety and social services critical to small towns.
As Stitt departs office this year, lawmakers will decide which of his proposals gain traction in the Legislature and on future statewide ballots. With deep divisions between legislative leaders, interest groups and voters, the coming months may see fierce debates over the direction of Oklahoma’s government and public policy.