Oklahoma City, OK (STL.News) A state budget agreement reached Thursday maintains all state core service funding, provides tax relief to individuals and businesses, and makes targeted new investments in key priorities like education, economic development, health care and infrastructure. The agreement also replenishes more than $700 million in state reserve funds that were significantly reduced to offset pandemic-related revenue reductions last year.
Under the agreement, the appropriated Fiscal Year 2022 budget would be $8.3 billion.
The high-level agreement, which is still being finalized between the Legislature and Gov. Kevin Stitt:
Increases common education funding by $171.8 million, or 6%, to a record high of $3.2 billion, triggering class size reductions in kindergarten and first grade.
Boosts reserves from less than $300 million today to more than $1 billion – approaching the high-water mark state reserves held before the pandemic began.
Reduces the top personal income tax rate from 5% to 4.75% and the corporate income tax rate from 6% to 4%, placing both in the Top 10 for lowest rates in the country of states that levy those types of taxes.
Recruits more film industry projects by creating a new film tax incentive with a $30 million cap.