Governor Stitt, legislative leaders announce $12.6B state budget deal

Governor Stitt, Legislature Announce Budget Deal

OKLAHOMA CITY (May 14, 2025) - Today, Governor Kevin Stitt, Senate President Pro Tempore Lonnie Paxton, and House Speaker Kyle Hilbert unveiled a comprehensive agreement aimed at cutting taxes, investing in key infrastructure, and strengthening Oklahoma’s business-friendly climate.

The agreement includes a quarter-point tax cut to the state income tax, a consolidation of income tax brackets and a true path to zero income tax, ensuring that Oklahoma stays competitive with surrounding states.

Small: Who’s funding lawsuits in Oklahoma?

Who’s funding lawsuits in Oklahoma?

by Jonathan Small

Everyone pays the cost of abusive tort lawsuits. The average cost of tort litigation to each Oklahoma family is $2,930, according to a report by the U.S. Chamber Institute for Legal Reform.

One rapidly growing kind of lawsuit is “mass torts,” where plaintiffs’ lawyers claim that thousands of customers have been harmed. The strategy is to file as many cases as possible and flood the zone against the defendant business—and to overwhelm the courts. This provides frivolous cases cover, and it creates abusive pressure on defendants to settle.

Small: Time to fix court’s mistake on damage cap

Time to fix court’s mistake on damage cap

By Jonathan Small

This month, Gov. Kevin Stitt appointed a new Oklahoma Supreme Court justice, filling a position vacated when Oklahoma voters ousted longtime liberal incumbent Justice Yvonne Kauger last November.

Kauger was the first Oklahoma Supreme Court justice removed by voters in state history. That action came amidst growing voter dissatisfaction with the court’s increasingly liberal bent in recent years.

Among the most notable examples of that trend is a bizarre 2019 ruling striking down the state’s $350,000 cap on vague noneconomic-damages awards in lawsuits. Under that law, Oklahomans could sue for unlimited actual damages, such as lost wages, medical expenses, and lifelong costs from an injury. The bill simply capped the noneconomic-damages portion of lawsuits, an area notorious for “jackpot” justice awards that can far outpace economic reason.

Yet the Oklahoma Supreme Court struck down that law, declaring it a “special law” since the cap applied in cases “where the plaintiff survives the injury-causing event, while persons who die from the injury-causing event face no such limitation.” (The Oklahoma Constitution prohibits capping noneconomic damages in cases involving death.)

The plaintiff in that case reportedly received $9.7 million in payment for an on-the-job accident but wanted millions more in “noneconomic” damages as well.

The negative impact of the court’s activist ruling has been significant.

In July 2019, a few months after the Oklahoma Supreme Court’s ruling, the American Tort Reform Foundation ranked Oklahoma among the nation’s 10 worst “judicial hellholes.” The Oklahoma Supreme Court’s decision on noneconomic caps was one factor cited.

“The Economic and Fiscal Impact of Excessive Tort Costs on Oklahoma,” a study commissioned by the State Chamber Research Foundation and conducted by the Perryman Group, found that excessive tort costs have translated into the loss of $3.7 billion in state gross product each year and almost 32,000 jobs in Oklahoma.

The study estimated the share of state economic losses tied to the Oklahoma Supreme Court’s 2019 decision totaled nearly $2.7 billion in gross product from 2020 to 2023.

However, only one sitting justice remains who was among the majority that struck down the cap in 2019. A new court may look more favorably on the idea. Lawmakers should reinstate the cap, which is sensible and commonly used nationwide.

Eight other states have caps on broad noneconomic damages, while 26 states cap noneconomic damages in medical-malpractice cases. Furthermore, those laws typically exempt cases involving reckless disregard for the rights of others, gross negligence, fraud, or intentional or malicious conduct.

It’s time for Oklahoma to again cap noneconomic damages. Those injured as the result of others’ action would still have access to full financial restoration, but the cap would provide financial certainty for businesses and encourage more investment in Oklahoma.

That’s a win-win for everyone.

Jonathan Small serves as president of the Oklahoma Council of Public Affairs.

OCPA column: COVID chaos requires bold reforms

COVID chaos requires bold reforms

By Jonathan Small

The assault on lives, livelihoods and medical needs of Oklahomans by governments’ response to COVID-19 is going to require bold reforms to reverse the damage. Lawmakers should enact several polices as a result.

First, any regulations waived to deal with COVID-19 should stay repealed. The state is functioning without those regulations and lives and livelihoods have been saved.

Oklahoma government is receiving more than $1 billion in federal funding to recover. As the federal government provides more flexibility, these funds should be used for a mix of purposes, including offsetting of state revenue shortfalls, financing of some strategic projects, and facilitating pro-growth reforms.

Pro-growth tax reform is desperately needed. With two “black swan” events underway—the collapse of the oil and gas industry and COVID-19—Oklahoma must now position itself to diversify with new businesses, preserve existing businesses, and attract business from other states.

House Judiciary Chair Kannady working with State Chamber on compromise tort reform legislation

House Judiciary Chair to Explore Non-Economic Damage Caps with Guidance from State Chamber

OKLAHOMA CITY – After the Oklahoma Supreme Court issued its ruling in Beason v. I.E. Miller Services, Inc., striking down non-economic damage caps, House Judiciary Chair Christopher L. Kannady (R-Oklahoma City) sought input from all stakeholders to work on compromise legislation to move Oklahoma forward.

Chairman Kannady reached out to the State Chamber of Oklahoma, Oklahoma State Medical Association, and Oklahoma Association for Justice, amongst others. 

 “The State Chamber of Oklahoma worked closely with Chairman Kannady last year on workers’ compensation and other legal reform measures,” said President and CEO of the State Chamber of Oklahoma Fred Morgan. “We look forward to continuing that work during the upcoming session in order to achieve long-term solutions for the business community.”

“It appears that certain stakeholders have no interest in working on a compromise,” Kannady said. “Thus, I will move forward exploring options with stakeholders who are interested in advancing Oklahoma.