Stitt urges 3% spending cap, taxpayer endowment and voter referendums on taxes, Medicaid and marijuana in State of the State

Governor Kevin Stitt told a joint session of the Oklahoma Legislature on Feb. 2 that the state should codify limits on spending and send several major policy questions to voters.

Stitt, speaking in the House chamber, said Oklahoma has reversed deficits, increased education funding and built"the largest cash reserves in state history" and urged lawmakers to "codify a 3% annual cap on recurring spending growth in our constitution." He also proposed seeding a "taxpayer endowment fund" with $750,000,000 of existing savings to generate long-term revenue.

Why it matters: Stitt framed the proposals as steps to preserve recent fiscal gains and reduce future pressure on taxpayers. He said Medicaid is projected to consume 37% of the state's annual budget in 10 years ("6,000,000,000" was cited in the address) and asked lawmakers to enable adjustments to Medicaid expansion and to support stronger work and vetting requirements for benefits.

The governor pressed other measures aimed at tax relief and homeowner protections. He called for a state question to "freeze property tax growth across the board" and said his administration could seed the endowment with $750 million now to produce sustainable income later.

On education, Stitt urged broad reforms: eliminate the OSSAA (the high-school activities association), expand charter access through the statewide charter board without local-district approval, remove the cap on the parental choice tax credit, and move to an appointed state superintendent to focus on outcomes rather than politics.

Stitt criticized the post-2018 medical marijuana framework, saying it "has more dispensaries than pharmacies" and accusing parts of the industry of enabling criminal activity and foreign influence. He credited the Oklahoma Medical Marijuana Authority and the Oklahoma Bureau of Narcotics for enforcement efforts and asked lawmakers to send the marijuana question back to voters.

"I'm calling on the legislature to send a question to voters that would allow adjustments to Medicaid expansion so that we protect the program for those who really need it," Stitt said. He also said, "Let's codify a 3% annual cap on recurring spending growth in our constitution, and let's lock in future cuts with ironclad rules." (Quotes as delivered.)

Stitt positioned the proposals as consistent with a broader platform of reducing regulation, protecting vulnerable Oklahomans and securing the state's future. He cited a peak cash reserve figure of more than $5.5 billion and described prior tax cuts and reduced state employment during his term as evidence of fiscal discipline.

Next steps: The governor's message was ordered printed in full in the House journal. Each proposal Stitt outlined would require legislative action to place state questions on the ballot or to enact statutory changes; the transcript records no formal legislative votes on these proposals during the Feb. 2 session.