Budget Agreement

Oklahoma City, OK – Okla. leaders reach agreement on state budget

OKLAHOMA CITY (AP) State leaders reached an agreement on a $6.5 billion state budget for the upcoming fiscal year that uses a combination of agency budget cuts, money from a cash reserve fund and a transportation bond issue to plug a $500 million hole in the budget.

New Republican Gov. Mary Fallin and leaders in the GOP-controlled Legislature announced the deal Tuesday that will lead to cuts of about 4 percent for common education and 5 percent for the state's colleges and universities.

Cuts to health and human services agencies were limited to about 1.2 percent, while transportation will essentially be held harmless once a $70 million bond issue is approved to continue funding road and bridge projects.

Fallin says lawmakers agreed to pass several of her initiatives as part of the deal.