Analysis of Agency Challenges

​

​

​

Challenge Description

Current Actions

(Briefly describe how the agency is currently addressing the challenge.)

Planned Actions

(Briefly describe how the agency plans to address the challenge going forward.)

​

​

1

OCAST continues to face inadequate recurring appropriations to meet the growing demand for Industry Innovation, commercialization support, and capital access programs. Without sufficient baseline funding, the agency must turn away high-quality projects, delaying

economic impact and weakening Oklahoma’s competitiveness in technology-based economic development.

​

​

OCAST is maximizing existing funding by prioritizing highest-impact projects, referring businesses to partner programs when internal funding is unavailable, and leveraging SSBCI, ARPA, and federal match opportunities where possible. These actions help extend support even when program demand exceeds state resources.

​

​

OCAST request increased recurring appropriations in FY27 to expand funding for Industry Innovation, internships, and capital access programs. Additionally, the agency will seek federal, corporate, and philanthropic partnerships to diversify funding streams and mitigate volatility in year-to-year appropriations.

​

​

​

2

OCAST faces increasing operational costs due to inflation, rising technology expenses, and statewide cost-of-business increases. In addition, the agency must prepare for a potential office relocation in early 2027, which will require both transition planning and one-

time expenditures. Without adequate operational flexibility, these cost pressures may impact program delivery and administrative efficiency.

​

​

OCAST is managing expenses through internal cost controls, leveraging the new CRM to streamline processes, and prioritizing essential operational needs. The agency is also proactively planning the logistics of an eventual office relocation to minimize disruption to services and ensure continuity.

​

​

OCAST request increased operational funding in FY27 specifically to cover inflationary costs, technology needs, and relocation-related expenses. The agency will also seek cost-saving opportunities and efficiencies through partner collaborations to responsibly manage the transition and maintain high-quality service delivery.

Analysis of Agency Challenges

​

​

​

Challenge Description

Current Actions

(Briefly describe how the agency is currently addressing the challenge.)

Planned Actions

(Briefly describe how the agency plans to address the challenge going forward.)

​

​

​

​

3

OCAST requires accurate, comprehensive data to assess program outcomes, guide decision-making, and demonstrate return on investment. As programs expand, inconsistent or incomplete data, particularly from legacy systems or external partners, limits the agency's ability to fully quantify economic

impact and meet federal reporting requirements.

​

​

​

OCAST has centralized data management within the agency, implemented new CRM tracking, and begun streamlining data inputs, standards, and reporting across programs and partners.

​

Beginning in FY27, OCAST will launch longitudinal impact studies and integrate national benchmarking datasets. The agency will also enhance federal and state reporting systems, adopt shared data standards across partners, and use data analytics staffing to support more sophisticated evaluation and economic modeling.

​

​

​

4

Several high-impact OCAST programs are supported by time-limited awards. As these federal and state-restricted funds wind down, OCAST must secure alternative revenue sources to sustain critical statewide services such as technical assistance, startup

accelerators, rural entrepreneurship support, and commercialization activities.

​

OCAST is maximizing the use of remaining ARPA and SSBCI funds, ensuring compliance, and engaging partners to identify sustainability strategies. The agency is also strengthening its internal tracking and reporting systems to better demonstrate ROI to future funders.

​

OCAST will actively pursue non-state, non-federal funding, including philanthropic grants, corporate partnerships, foundation collaborations, and competitive national innovation programs. These efforts aim to diversify OCAST’s funding base, reduce reliance on one-time awards, and ensure continuity of high-impact initiatives once temporary funding streams expire.

Analysis of Agency Challenges

​

​

​

Challenge Description

Current Actions

(Briefly describe how the agency is currently addressing the challenge.)

Planned Actions

(Briefly describe how the agency plans to address the challenge going forward.)

​

​

​

​

​

​

​

​

​

​

5

Oklahoma must operate as a coordinated and unified innovation system to stay competitive. With a population of four million, the state competes against metropolitan regions that have far greater access to capital, talent, and specialized infrastructure. To bridge that gap, Oklahoma needs strong leadership to align the

efforts of universities, industry, CareerTech, accelerators, tribal partners, and regional developers. Emerging sectors such as biotechnology, autonomous systems, defense, energy technology, and advanced manufacturing require deep technical expertise and targeted support, not broad services that are typically associated with

traditional economic development strategies. Without flexible funding sources and a coordinated statewide strategy focused on innovation, Oklahoma risks fragmented efforts, duplicated services, and the loss of its competitive position in these high-growth industries.

​

​

​

OCAST was intentionally designed by the Legislature with capabilities that no other agency possesses. As the only statewide entity empowered to help launch and grow technology-based startups, OCAST coordinates the Oklahoma Commercialization Network, connects innovators with capital and commercialization support, and helps companies move ideas from concept to customer. The agency brings together universities, industry, accelerators, tribal partners, and regional developers to build new industries and high-wage jobs. This work complements traditional economic development strategies, which focus on business recruitment and expansion, by providing services that help Oklahoma companies create entirely new technologies and markets. OCAST is also integrating partner and program data through its CRM to strengthen alignment, reduce duplication, and ensure services effectively support emerging technology companies.

​

​

​

​

To strengthen statewide competitiveness, OCAST will expand efforts to align key stakeholders around shared innovation priorities, unified messaging, and coordinated service delivery. The agency will pursue flexible funding sources, including philanthropic, corporate, and foundation partnerships, to build the specialized technical expertise required for high-growth sectors such as aerospace, biotechnology, autonomous systems, defense, energy innovation, and advanced manufacturing. These resources will enable OCAST to continue operating as the state's strategic hub for technology-driven economic growth. This work is distinct from traditional economic development strategies and ensures Oklahoma can compete with innovation economies that are many times larger than our state.

Savings or Efficiency Name

Brief description of how savings were achieved

Savings in Unit of Measurement*

FY 2025

(Actual $

Savings)

FY 2026

(Projected $

Savings)

FY 2027

(Projected $

Savings)

​

New CRM Tool

OCAST transitioned to a single CRM and data capture platform. While transition costs were higher, the new tool allows for increased automatization, data capture, and flexibility to grow along with annual cost savings.

​

Dollars

​

$35,000

​

$35,000

​

$35,000

​

​

​

​

Additional Return to State

Increased appropriation requests for STEM Intern, Industry Innovation, and Capital Access require a dollar-for-dollar match prior to funding and will generate

immediate return for Oklahoma. Additionally, these increases cannot be used for agency operations or program management thus ensuring Oklahoma receives increased benefit at zero extra administrative/operational expense to the state. This savings is only realized if appropriation requests are funded.

​

​

​

​

Dollars matched at funding

​

​

​

​

​

​

$9,139,080

Goal

Metric

FY 25

Target

FY 25

Actuals

FY 26

Target

1

Build upon the success of the Oklahoma Innovation Partners Program

​

Number of new partners

​

25

​

25

​

30

2

Increase the number of high-quality applications across all OCAST programs by implementing a unified, business-focused framework that closes startup and innovation gaps and expands the statewide pipeline of investable companies. (Intern Program and R&D Attraction will remain as separate programs)

​

​

Applications to programs (Industry Innovation only)

​

​

75

​

​

74

​

​

80

3

Increase the number of jobs created and retained by applying a consistent, business-speed program framework that accelerates company growth and ensures innovators and employers receive the support needed to scale in Oklahoma.

​

Jobs created/retained

​

​

1500

​

​

2024*

​

​

2000

4

Increase the amount of follow-on capital secured by OCAST-supported companies by using a coordinated, market-driven program framework that strengthens investment readiness and helps Oklahoma companies compete for private, philanthropic, and federal dollars.

​

​

Follow-on capital

​

​

$150,000,000

​

​

$139,980,463*

​

​

$150,000,000

5

​

Maximize capital funding opportunities

​

Companies formed

​

15

​

43*

​

20

6

​

Become a data driven organization

​

Impact survey response rate

​

85%

​

87%*

​

80%

7

​

Provide necessary resources for success

​

Staff turnover

​

2

​

1

​

2

​

FY 2026 Budgeted FTE

Total FTE

​

18*

Supervisor FTE

​

4

Supervisors to Total FTE

Ratio (%)

​

22.2%

Current Budgeted but Unfilled FTE

​

1

​

Fiscal Year

Legislated Appropriation ($)

(Includes supplementals and SRF/ARPA.)

FY 2022

​

$15,296,542

FY 2023

$16,846,542

ARPA $68,750,000

FY 2024

$16,846,542

ARPA $6,500,000

FY 2025

​

$18,846,542

​

FY 2026

​

$17,346,542

Carryover

FY 2022

FY 2023

FY 2024

FY 2025

Total appropriated carryover amount expended ($)

$270,564

$153,516

$248,772

$306,063

Revolving Class Fund #

(Unrestricted

only)

​

Revolving Class Fund Name (Unrestricted only)

Current cash balance ($)

Projected FY 2026 year-end cash balance ($)

19511

General Revenue Fund Carryover

$803,034

$0

200

Research & Support

$13,777,786

$8,000,000

#

​

$

$

#

​

$

$

#

​

$

$

#

​

$

$

​

Total Unrestricted Revolving Fund Cash balance:

$14,580,820

$

Historical Cash Balances

FY 2022

FY 2023

FY 2024

FY 2025

Year End Revolving Fund Cash

Balances (All Revolving Funds)

$8,826,344

$36,449,035

$31,366,189

$46,488,954

​

Purpose of appropriation increase or decrease

​

Amount FY 2024

​

Amount FY 2025

Total amount received

FY 2024 - 25

Total amount expended by 11/1/2025

Included in FY 2026

approp? (Yes/No)

​

If not expended fully, please explain.

Pilot addressing gaps and access to capital

$0

$1,500,000

$1,500,000

$

No

​

​

Oklahoma Research Attraction Act

​

$0

​

$500,000

​

$500,000

​

$

​

Yes

OCAST launching program in FY26 and needed time to develop rules and implement review and evaluation process.

Totals

$0

$2,000,000

$2,000,000

$

​

​

​

Purpose of appropriation increase or

decrease

​

Amount of increase or decrease ($)

Does this need to be included in your FY 2027 appropriation? (Yes/No)

If yes, included in appropriation for same purpose? (Yes/No)

​

​

If not included for same purpose, please explain.

Pilot addressing gaps and access to capital

-$1,500,000

Yes

Yes

​

Total adjustment

$

​

​

​

​

Request Name

FY 2027 Incremental Appropriation Request Amount ($)

{or FY 2026 for Supplementals}

Type of Request: Recurring, One-time, or Supplemental

1

​

Fund STEM Intern Industry Partnership Program

​

$2,500,000

​

Recurring

2

Increase in Industry Innovation funding to maximize impact on Oklahoma's

economy

​

$5,139,080

Recurring

3

​

Agency relocation and space improvements

​

$100,000

​

One-time

4

​

Resume funding for year two of the Capital Gaps pilot program

​

$1,500,000

One-time (2 years remaining of 3-year pilot program)

​

5

​

Increase to address inflation costs to agency operations

​

$85,686

​

Recurring

Name of Request Fund STEM Intern Industry Partnership Program

Type: Recurring

$ 2,500,000

Incremental Amount Requested for FY 2027

The STEM Intern Partnership Program has never received direct legislative funding and has instead been sustained through deobligated dollars from other OCAST programs and limited agency operational funds. Rising operational costs due to inflation and increased demand for OCAST’s other core programs have now placed the agency at the point where it can no longer sustain the program without dedicated appropriations. Without stable funding,

Oklahoma risks losing one of its most effective tools for connecting students to industry, strengthening the state’s

STEM workforce pipeline, and building capacity of startups and new innovations in the states tech industry.

​

Recent expansions have broadened eligibility to include CareerTech students, creating even greater opportunities for impact across all 77 counties. With proper support, the program can fund 83–250 projects per year, serving 166–500 students and providing direct innovation value to Oklahoma companies of all sizes. Students gain meaningful, career-relevant experience while businesses advance real technical projects. With a proven record of placing STEM students into high-wage Oklahoma jobs, this program remains essential to meeting workforce demands and sustaining long-term economic growth.

Name of Request Increase in Industry Innovation funding to maximize impact on Oklahoma's economy

Type: Recurring

$5,139,080

Increase Amount Requested for FY 2027

OCAST is requesting an increase in funding for the Industry Innovation Program to meet growing demand from high-potential projects across the state. This program consistently receives more quality applications than available funding, and without additional resources, Oklahoma risks losing promising technologies and companies to out-of-state programs that can offer support. In FY26, 14 highly competitive projects fell below the funding line. These projects represent $9,557,583 in immediate matching funds, an estimated $436 million in follow-on investment, 49 high-wage jobs paying $4.8 million annually, and more than $3 billion in projected sales that Oklahoma will forfeit if these opportunities move elsewhere.

​

With increased funding, OCAST can ensure that these innovation-driven projects are developed in Oklahoma,

creating jobs, attracting private investment, and strengthening the state’s technology-based economy. Failure to support these opportunities now will make it far more difficult and costly to recruit these companies or technologies back to Oklahoma in the future.

Name of Request Agency relocation and space improvements

Type: One-Time

$100,000

Incremental Amount Requested for FY 2027

OCAST is requesting one-time funding to support the relocation of the agency to a more modern, cost-effective, and functional facility. The agency has operated in its current location for 20 years, during which operating costs have increased without corresponding improvements to the space. The current facility now presents ongoing challenges that hinder staff productivity and limit the agency’s ability to effectively host partners, applicants, and stakeholders. A relocation will improve operational efficiency, enhance the professional environment for visitors, and better position OCAST to fulfill its mission of advancing Oklahoma’s innovation economy. The requested amount includes the costs for packing and moving the office, relocating all IT infrastructure, limited new furniture or fixtures as needed, and a contingency to account for potential cost fluctuations.

Name of Request Resume funding for year two of the Capital Gaps pilot program

Type: One-Time

$1,500,000

Incremental Amount Requested for FY 2027

OCAST is requesting funding to resume the second year of the three-year Capital Gaps Pilot Program, which was created to address critical gaps in early-stage capital access for Oklahoma entrepreneurs and innovators. Because year two funding was not provided, the program was paused, and OCAST is now reassessing how it can scale back and still meet the most urgent needs identified through the initial year of work. Restoring this funding will allow OCAST to pilot new and more targeted capital models and to use these dollars as matching funds for private, philanthropic, and federal opportunities that can significantly expand Oklahoma’s overall capital landscape.

Name of Request Increase to address inflation costs to agency operations

Type: Recurring

$85,686

Increase Amount Requested for FY 2027

OCAST is requesting a 2.9% increase in agency operational funds to address rising costs caused by inflation. The agency has not received additional operational support in several years and has already implemented all feasible efficiencies. This increase will ensure that higher operating costs do not reduce available program funding and will allow for modest staff compensation adjustments to bring several positions closer to current market rates. The requested funds will also cover unavoidable expense increases such as office lease costs, which have risen 33% since 2020 without corresponding improvements to the facility.