LFO recommends budget adjustments for state divisions amid projected revenue shortfalls

The Joint Committee on Ways and Means Subcommittee on General Government convened on June 2, 2025, to discuss the proposed budget for various state divisions, highlighting a 1.6% increase from the previously approved budget. This increase is primarily attributed to growth in personal services and standard inflation adjustments.

The meeting outlined significant budgetary packages across multiple divisions, with the Legislative Fiscal Office (LFO) recommending a total of approximately $5.3 million in funding adjustments. The administrative division, for instance, has a budget of over $43 million, with proposed reductions to general fund allocations due to savings from vacating the Fifth Floor of the Revenue Building. This trend of recognizing savings from vacated spaces was a recurring theme throughout the discussions.

In the property tax division, a notable revenue shortfall led to a proposed reduction of over $10 million in other funds expenditure limitations. This adjustment aims to align the budget with actual revenue needs, particularly for county assessment functions. The personal tax and compliance division also faced cuts, including the elimination of several vacant positions, reflecting a shift in workload demands.

The business division's budget included adjustments to account for actual costs associated with administering criminal fines, while the collections division anticipated increased workloads due to new payroll tax implementations. The corporate division and information technology services division also proposed reductions linked to the vacated office space.

The meeting concluded with a motion to adopt the LFO recommendations, indicating a consensus on the proposed budget adjustments. As the state prepares for the upcoming biennium, these discussions underscore the ongoing efforts to manage resources effectively while addressing the needs of various governmental functions. The anticipated next steps will involve further scrutiny of these budget proposals as they move through the legislative process.