Tensions abound as lawmakers, Gov. Stitt plan to meet Monday to discuss budget

Republican leaders in the Oklahoma Legislature have agreed to attend a budget "summit" hosted by Gov. Kevin Stitt on Monday in an attempt to get FY 2025 budget negotiations off high center. The meeting, set for 2 p.m. Monday in the governor's large conference room at the state Capitol, comes with less than a month remaining in the second session of the 59th Oklahoma Legislature.

For more than a month now, House and Senate budget negotiators have continued to wrangle over how to spend the roughly $13 billion available and with Stitt's call for a cut in the personal income tax rate.

Senate President Pro Tempore Greg Treat, R-Oklahoma City, and House Speaker Charles McCall, R-Atoka, both said they would attend the meeting.

"We're going to go in earnestly at 2 p.m. on Monday," Treat said. "I'll take as many people as he'll allow me to take in order to allow us to have the most robust dialogue."

However, the Senate's team won't be led by Sen. Roger Thompson, R-Okemah, who was — until last week — chairman of the Senate Appropriations Committee. Thompson was abruptly fired by Treat after he failed to follow the pro tempore's efforts on budget transparency.

More: A state budget agreement could still be an uphill battle despite the special summit next week

"You have to make the decision to put us in the best position for transparency, and I felt like there was a clear need for change after last week," Treat said. "Last week, week 12, we went dark, and a lot of decisions were made without honoring the process."

A source, who asked to remain anonymous because she was not authorized to speak publicly, said Thompson had "gone rogue," negotiating budget deals without Treat or the rest of the Senate's knowledge.

"Thompson was well aware of the push for transparency, but he never really embraced it," the source said. "And he started making these deals without going through the proper process. That's what got him fired."

Through Treat's decision to fire Thompson reinforces his commitment to transparency, it also eliminated a seasoned player from the budget process. Complicating the matter even further, both Treat and McCall are in their last month as legislative leaders, while Stitt's term as governor, doesn't end for two more years. That gives him — for the first time since he's been in office — a little more clout in budget negotiations.

Because the Oklahoma Constitution gives the Legislature far more authority than the governor, Stitt has been mostly sidelined from the budget process. Last summer, the governor didn't even sign budget legislation, but instead allowed the budget package to become law without his signature.

Tension between Senate Pro Tempore Greg Treat and Gov. Kevin Stitt continues

That tension has carried over to this year. Stitt and the House of Representatives are in close alignment, but Treat, at the other side of the Capitol, remains firm in his commitment to not pass a second tax cut. With Thompson gone, time running out and tension rising, the once-smooth budget process has stalled.

Last week, Stitt, still pushing his income tax cut, went to Plan B, calling for a public budget "summit." At that point, the governor emailed legislative leaders inviting them to his budget summit.

But Stitt didn't invite every lawmaker.

Democrats, including House Minority Leader Cindy Munson and Senate Minority Leader Kay Floyd, didn't get the emailed invitation.

"Yeah, you could say the governor's call for transparency didn't include the minority caucus," the source said.

In fact, Democrats only found out about the deal after Treat forwarded his acceptance of Stitt's invitation to every member of the Legislature. Treat said wanted to ensure every lawmaker was aware of what was happening.

“From the beginning of this process, Pro Tem Treat has prioritized transparency, regardless of political affiliation. That is why he included every member of the legislature on his email reply to the governor," said Alex Gerszewski, Treat's communications director.

"This meeting was called by the governor, and he can invite whoever he wants to be at the table, but the Pro Tem does appreciate the spirit of transparency by having it be an open meeting," Gerszewski said. "While it won’t be the final budget meeting, and there will be more to discuss, Pro Tem Treat is committed to the budget process being transparent for all 4 million Oklahomans.”

Malia Bennett, a member of the Senate's communication staff, said some Senate Democrats would attend the meeting Monday.

Stitt continues his call for income tax cut

On Friday, Stitt told reporters he was excited by the opportunity to meet with lawmakers about the budget. He also doubled down on his call for a tax cut.

"Let's not forget about inflation," Stitt said. "Let's not forget about working families. If you haven't got a 25 percent pay increase since 2020 you've actually lost money, because things are costing so much. So it's time to give Oklahomans a tax cut. If we don't do that now ... if we don't do that when we have excess revenue, I don't know when we can do it."

Stitt predicted the budget meeting would be a good thing. He said he would continue to push for limited government, lower taxes and work to ensure that the state didn't spend more than its income. He also said he wants the state to continue to maintain a savings account as a buffer against future problems.

"It'll be a great day on Monday. I'm excited that the House and Senate are going to sit down together," Stitt said. "As the CEO, or the governor of the state, that's what I do, I'm trying to bring people together to get this budget across the finish line."

But that may not be easy.

Late last week McCall said the House was ready to wrap things up on a budget agreement, but Treat countered the Senate wouldn't bow to a forced deadline.

Both lawmakers spoke to reporters on Thursday, just a day after the governor proposed his budget summit. And while McCall and Treat have embraced Stitt’s meeting idea, for Treat the possibility of having a budget deal finalized by Monday was complete fiction.

“No. That’s not going to happen. We’re not going to have a forced deadline on it," he said.

Though a push for a second tax cut will continue to be debated, other issues could dominate Monday's budget summit, including the recent series of tornadoes, which will require significant state disaster assistance and what could be an ongoing fight about a controversial Republican bill to arrest and remove immigrants recaching Oklahoma without proper documentation.

That bill, which sailed through both the House and Senate was signed by Stitt over a chorus of objections from Democrats, Hispanic leaders and churches. Several groups say they are working to mount a legal challenge to the measure.

Still, even with Monday's meeting, time is running short to craft a budget deal. Yet Treat, even now, remains optimistic a budget will be completed before the end of the session. "There will be problems and debate and the gnashing of teeth but in the end, we will have a budget," he said.

This article originally appeared on Oklahoman: Oklahoma lawmakers, Gov. Kevin Stitt face tough budget talks Monday